The Mayor of London, Sadiq Khan, said: “I welcome this announcement of much-needed additional support, which business groups and I have been calling for.

It should have come sooner and it won’t replace the revenue lost over the vital Christmas period, but it should help many struggling retail, hospitality and leisure businesses stay afloat until spring.

“Clearly more help is needed – including an extension to the business rates holiday and the VAT relief scheme, targeted support for night-time economy businesses which have been forced to stay shut since March, and more support for those who are self-isolating.

“I’m also urging the Chancellor to act swiftly and guarantee the furlough scheme will continue to protect people’s jobs until the vaccine is rolled out widely and restrictions are lifted.

“It’s scandalous that there are three million excluded self-employed people who continue to be ignored, many of whom are left facing the impact of these tougher restrictions alone.”