The UK economy will likely “get worse before it gets better” as it continues to recover from the Covid-19 pandemic, the chancellor Rishi Sunak has warned.

“Even with the significant economic support we’ve provided, over 800,000 people have lost their job since February,” he told MPs.

“Sadly, we have not and will not be able to save every job and every business.

“But I am confident that our economic plan is supporting the finances of millions of people and businesses.”

Fiscal support throughout the pandemic has reached a total of £280 billion, with 1.2 million employers furloughing 10 million workers, Mr Sunak said in Parliament.

He added that he would “bear in mind” calls for extended relief as he prepares the Budget for March.

Shadow chancellor, Anneliese Dodds, said Mr Sunak was “out of ideas”, adding that “the purpose of an update is to provide us with new information, not to repeat what we already know.”