Chancellor Rishi Sunak is expected to unveil plans for a new UK-state guaranteed loan programme in next week’s Budget, which would replace emergency coronavirus schemes, according to the Financial Times.

It said the three existing emergency support schemes, including the bounce back loans, would be pulled for new applicants, with business having until the end of March to apply for loans under those programmes.

However it is expected that Sunak will announce an extension to other support measures until June, including business rates, VAT relief, and the furlough scheme.

It is understood the Treasury is to replace the existing loan schemes with a new system, with more stringent criteria, as it looks to try and wean businesses off state support as restrictions start to ease.

Expected to launch in April, it will offer loans of up to £10m with an 80% government guarantee, while interest rates would be capped at about 15%.