16:05

Canada will dramatically scale up support for small businesses amid criticism its policies are falling short as the coronavirus continues to jolt the country’s economy.

Justin Trudeau, the prime minister, unveiled plans to cover 75% of employee wages for small business – up from an initial 10% – in order to discourage companies from laying off staff.



“It is becoming clear that we need to do more –much more,” he said, announcing the multibillion-dollar plan. The move brings Canada in line with a number of European nations that have also pledged to backstop the payrolls.

In the last week, nearly 1 million Canadians applied for unemployment benefits. Trudeau’s attempts to reassure small business owners follows a move by British Columbia to assume control of the province’s supply chains as Covid-19 cases across the country continue to surge.

In recent days, fears have grown – both within government and the general public – of looming shortages of essential goods in grocery stores, pharmacies and hospitals. “The steps we’re taking today are unprecedented. But I find myself saying that almost every day,” premier John Horgan told reporters.

The province, like all others in the country, is under a state of emergency as it battles coronavirus – including an outbreak at a retirement centre. Until recently, British Columbia also had suffered the most fatalities in the country.

Trudeau has so far declined to invoke the rarely used Emergencies Act, which would unify country’s approach to tackling the virus. Instead, he has allowed provinces to enact their own measures – and relief programmes – to combat Covid-19.

Canada has recorded more than 4,000 cases of Covid-19 and 39 deaths.

