The UK government’s “unprecedented” move to cover staff salaries at businesses forced to close during the coronavirus epidemic will probably cost the taxpayer multiple tens of billions of pounds over the coming months, according to estimates from City analysts.

Rishi Sunak, the UK chancellor of the exchequer, announced on 20 March that the British government will pay up to 80% of staff wages at affected companies, in a move he described as “unprecedented measures for unprecedented times”.