London: The British government has launched an historic intervention in the economy by pledging to pay 80 per cent of the wages of workers hit by the fallout from the rapidly worsening coronavirus pandemic.

Prime Minister Boris Johnson unveiled the unprecedented scheme while announcing all restaurants, cafes, bars, cinemas and gyms would be forced to close indefinitely from Saturday.

"For the first time in our history, the government is going to step in and pay people's wages," Johnson said.

Britain will pay companies up to 80 per cent of an employee's wage on the condition the worker is not fired. The payments will be capped at £2500 ($5000) per month and the government will keep the scheme in place for as long as it is needed.