The self-isolation period could be slashed in Scotland for fully vaccinated people to a week, John Swinney announced.
The Deputy First Minister said the Scottish Government was considering cutting the period at which people have to remain indoors from 10 days to seven.
From today, those who receive negative lateral flow results on day six and day seven of their self-isolation period in England, and are vaccinated, will no longer have to self-isolate for the full 10 days.
The rule change may help thousands of people see their families in time for Christmas.
Earlier this month Nicola Sturgeon announced that self-isolation rules would be extended due to the rise in the rapidly spreading Omicron variant across the country.
Asked on the BBC's Good Morning Scotland programme if rules could be changed north of the border, Swinney said: "We will, of course, consider the proposition that the United Kingdom Government has brought forward.
"There are options that can be taken forward about self-isolation arrangements.
"I think what we have to recognise is that the number of cases is likely to become so significant, it's already much more significant.
"We're now looking at about 5,500 cases a day compared to about 3,500 a day which was just a week ago.
"That's going to give rise to significant absence levels to many private and public services, and that question brings into question the sustainability of some of these services which is why we have to act to try to slow down the circulation of the virus."
Host Laura Maxwell asked: "Reducing self-isolation would help wouldn't it?"
Swinney replied: "Of course it would, but we can't escape the fact that we've got to stop the circulation of the virus.
"That's the inescapable challenge that we face."
Scottish politics
It comes as Scotland's traditional Hogmanay celebrations will be cancelled and live sports will be "effectively spectator-free" for three weeks from Boxing Day as part of new Covid-19 restrictions, Nicola Sturgeon said on Tuesday.
The First Minister also introduced new curbs on hospitality and urged people to "stay at home as much as possible" until at least the first week of January.
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People who test positive for coronavirus will no longer need to self-isolate for 10 days.
Speaking to the BBC today, health secretary Sajid Javid announced that the isolation period following a positive test will be reduced to just seven days.
He said that the decision has been made to "reduce the disruption to people's everyday lives".
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Mr Javid continued: "This decision has been informed by the advice from our clinicians at the UK Health Security Agency who have looked at this very carefully and they are very comfortable that the protection that is provided by making this change … is very similar to 10 days of isolation without tests."
Boris Johnson is unlikely to introduce new Covid restrictions before Christmas despite a surge in Omicron cases.
Healthcare leaders have said it is a question of 'when, not if' tougher Covid restrictions are introduced as cases continue to rise.
NHS Confederation chief executive Matthew Taylor said more Covid rules are likely inevitable amid the rapid spread of the Omicron variant.
While Boris Johnson did not announce any new restrictions, he said there was a "possibility" new measures would need to be brought in to slow the spread of Omicron.
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The UK has recorded a further 90,629 coronavirus cases and 172 deaths in the latest 24-hour period.
The total is lower than yesterday's, which stood at 91,743.
A further 172 deaths have also been recorded within 28 days of a positive COVID test, which is up on yesterday's 44. Last Tuesday there were 59,610 daily cases and 150 deaths.
The UK Health Security Agency (UKHSA) confirmed a further 15,363 cases of the Omicron variant, taking the nationwide total so far to 60,508.
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1:12
Boris Johnson warns more restrictions could be imminent in England
Figures also reveal that 897,979 booster vaccinations were given out in the latest 24-hour period, which means 29.8 million people have now had a third jab - 52% of the population over the age of 12.
Prime Minister Boris Johnson is under pressure from scientists to reimpose restrictions over the Christmas period after Nicola Sturgeon announced measures for Scotland.
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From 27 December until "at least" the first week in January, people there are being asked to stay at home and reduce socialising as much as possible, including the New Year.
There will also be limits on large public events, following a similar decision in Wales on Monday.
MPs are being briefed on the current situation with Omicron on Tuesday evening by chief medical officer Professor Chris Whitty and chief scientific adviser Sir Patrick Vallance.
There are also reports in The Sun that "within 48 hours" the PM will make an announcement on whether a 'circuit breaker' lockdown will be imposed in England over the festive season and into January.
Hospitality businesses warned that £1bn of new support promised by Rishi Sunak for companies hit hard by the Omicron coronavirus variant fell far short of what they needed to survive a plunge in bookings.
While trade groups including UKHospitality welcomed the chancellor’s new package for companies affected by Omicron, hospitality executives said it was “too little, too late” and that some businesses would be forced to close if there was no further government help.
The warning came as Boris Johnson said no additional Covid-19 restrictions would be introduced in England before Christmas, although the prime minister did not rule out new measures soon after.
The rapid spread of Omicron and warnings from scientists about the risks of socialising have caused sales to tumble across hospitality and leisure businesses as Britons stay home.
UKHospitality estimates the sector has lost £4bn in sales since the government last month began implementing its so-called Plan B measures to tackle Omicron. City centres have been hit hardest, with sales down to a fifth of 2019 levels in central London at several venues in the past week.
Martin Williams, chief executive of Gaucho Restaurants, which had cancellations equivalent to 10,000 diners last week, said Sunak’s new support for the hospitality industry was “too little, too late” and “will only act as a sticking plaster on major challenges for the sector”.
Michael Kill, chief executive of the Night Time Industries Association, a trade body, added: “Every pound of help is much needed — but this package is far too little and borders on the insulting.”
Rocco Forte, chief executive of Rocco Forte Hotels, said the grants on offer by Sunak — of up to £6,000 per site — were “hardly going to make a lot of difference” to luxury hotels.
Scott Hunter, co-founder of The Pig’s Head pub in Clapham, south London, said: “While any support is welcome, £6,000 isn’t going to stop already hard-hit businesses from going under. Restaurants, pubs and bars make a large percentage of their annual profit in December and unless more support is forthcoming this will be the final nail in many businesses coffins.”
Other executives have warned that they could face laying off staff if current levels of trading continue.
The £1bn package announced by Sunak marked a major shift by the chancellor, who had previously insisted that sufficient initiatives were in place to support businesses through until the spring. The Treasury has so far provided more than £400bn to support workers and companies during the coronavirus pandemic.
Hospitality and leisure businesses will be the biggest beneficiaries of the £1bn package, with the one-off £6,000 grants worth up to £683m on a combined basis for an estimated 200,000 companies in England.
Another £100m of discretionary funding will be made available for councils in England to help companies in other sectors.
The government will also cover the cost of statutory sick pay for Covid-related employee absences at small and medium-sized companies, and provide £30m for a fund supporting culture. The Welsh, Scottish and Northern Ireland administrations will between them receive £154m to provide equivalent support.
The Treasury has not ruled out further financial support for business after Christmas if further Covid restrictions are introduced.
The British Chambers of Commerce said that if there were any tightening of restrictions, “we would need to see a wider support package, equal to the scale of any new measures, put in place”.
Hospitality businesses have been calling for a cut to business rates and an extension of relief on value added tax.
Clive Watson, executive chair of City Pub Group, described current Covid restrictions and government messaging as a “de facto lockdown” due to the impact on sales.
Retailers and gyms were left without specific support in Sunak’s latest package, and will have to apply for grants from local authorities.
The New West End Company, which represents retailers in central London including Oxford Street, said the sector had been “hard hit by a lack of footfall”.
The Treasury acknowledged that pubs and restaurants had experienced mass cancellations due to Omicron, but said companies now had 40 per cent more cash in the bank than at the start of the Covid crisis.
Rishi Sunak has announced an additional £1bn in financial support for the hospitality and leisure sectors, with every business able to claim a one-off cash grant of £6,000.
The Treasury is also providing a £30m top-up to the Cultural Recovery Fund - which supports institutions such as museums and theatres - and reintroducing the Statutory Sick Pay Rebate Scheme which allows small and medium-sized companies to claim compensation from the government for the cost of their employees' sick pay.
The chancellor said he is taking the measures due to the current situation being "very difficult, especially for those in the hospitality industry" as coronavirus cases continue to rise steeply.
Image:Many pubs and restaurants have been hit hard by mass cancellations as coronavirus cases rise
Following guidance to work from home and to prioritise social engagements, offices in major cities have emptied out and Christmas parties have been cancelled, hurting hospitality businesses.
Last week, Mr Sunak came under fire for failing to act swiftly to offer support to businesses hit hardest by this new COVID slowdown.
Mr Sunak cut short his trip to the US to hold more talks with a range of hospitality and business organisations including peri-peri chicken restaurant Nando's and brewery giant Greene King in response to the fresh COVID crisis on Friday.
Three new measures to help businesses
Hospitality UK has reported that many businesses have lost 40-60% of their December trade, often their most profitable month.
Announcing the new economic support package on Tuesday, the chancellor said his Treasury have responded "generously" to a "difficult" situation.
"I know the current situation is very difficult especially for those in the hospitality industry so today we are announcing three new measures to help people and businesses," Mr Sunak said.
£6,000 cash grants
"Firstly we are announcing a billion pounds in financial grant support which means eligible hospitality companies will be able to claim a cash grant worth up to £6,000."
Top-ups for theatres and museums
The chancellor has also announced a "£30m to top up our successful cultural recovery fund to support institutions like theatres and museums".
Sick pay
"And lastly, we are reintroducing our statutory sick pay rebate scheme so that small and medium sized companies can claim compensation from the government for the cost of sick pay for their employees.
"Taken together, I am confident that these measures will help hundreds of thousands of businesses and the millions of people that they employ."
The chancellor added that he will act accordingly when asked if additional financial help could follow if more restrictions are imposed.
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9:03
The PM says he can not guarantee more COVID-19 restrictions won't be put in place over Christmas and 'act cautiously'.
"Now, of course I will always respond proportionately and appropriately to the situation that we face, people can have confidence in that, but where we are now we have responded I think generously today.
"The grants that I've outlined, up to £6,000, are comparable to the grants that we provided for hospitality businesses when they were completely closed earlier this year - so there is a benchmark for you."
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7:36
Chef Tom Kerridge says hospitality has been crippled
He added that support including the reduced rate of VAT for the hospitality and tourism sectors lasts all the way into next spring.
The Treasury said around 200,000 UK businesses will be eligible for the business grants which will be administered by local authorities and will be available in the coming weeks.
Back in July, former culture secretary Oliver Dowden announced a £1.57bn Culture Recovery Fund rescue package for cultural organisations to help the sector survive, and when possible, reopen.
The fund has so far awarded funding to 5,000 organisations.
The Treasury said the top-up will enable more cultural organisations in England to apply for support during the winter.
When will restrictions be tightened?
Meanwhile, pressed on whether further restrictions this side of New Year in England could be ruled out, the chancellor reiterated that there is "an enormous amount of uncertainty at the moment" and said ministers are "keeping the situation under constant review".
The prime minister said on Monday that he reserved "the possibility of taking further action" and that the situation was "very finely balanced".
There is concern that the Omicron variant could be much more transmissible than Delta.
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2:26
Ireland has imposed an 8pm curfew to protect against the Omicron variant but the impact on hospitality is severe.
The prime minister said ministers were considering "all kinds of things to keep Omicron under control and we will rule nothing out".
Scientific advisers are understood to favour an immediate bolstering of COVID rules to prevent a potential surge in hospital admissions - but it is believed a significant number of the cabinet remain sceptical.
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6:09
If the booster campaign doesn't catch up with the spread of Omicron, what further restrictions could the government introduce?
The Treasury said that as part of the announcement the devolved administrations will receive around £150 million of funding through the Barnett formula, comprising around £80 million for the Scottish government, £50 million for the Welsh government and £25 million for the Northern Ireland executive.
Responding to the announcement, Mr Johnson said: "With the surge in Omicron cases, people are rightly exercising more caution as they go about their lives, which is impacting our hospitality, leisure and cultural sectors at what is typically the busiest time of the year.
"That's why we're taking immediate action to help with an extra £1 billion in grants to these industries and reintroducing our Statutory Sick Pay Rebate Scheme."
But shadow chief secretary to the Treasury Pat McFadden said the announcement was "a holding package from a government caught in a holding position".
"The real question after yesterday's indecisive cabinet meeting is what will happen next, when will the country be informed of that, and will support for businesses and workers be placed alongside any further public health measures that might be announced," he said.
Boris Johnson is unlikely to impose further coronavirus restrictions before Christmas after delaying a decision today.
The prime minister called a cabinet meeting this afternoon to discuss the latest data on the spread of the Omicron variant and whether a two-week circuit breaker banning indoor mixing was needed.
Speaking after a cabinet that ran for well over three hours, Johnson said that he would wait until the data was clearer before taking further action. “But we will not exclude going further if we have to to protect the public”.
He said that the government was looking at the latest data on an “hour by hour” basis.
He said: “In view of the balance of risks and uncertainties, particularly around the infection hospitalisation rate of omicron
Image:Her majesty usually spends Christmas in Norfolk
It emerged last week that the Queen had decided to cancel a traditional pre-Christmas lunch with other members of the Royal Family amid fears over spiking coronavirus cases and the arrival of the Omicron variant.
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The 95-year-old monarch hosts the event each year for her extended family and plans were reportedly fully in place at Windsor.
The Queen generally invites her children, grandchildren and great-grandchildren to join her at Buckingham Palace before she departs for her annual Christmas stay at Sandringham.
The palace is undergoing major renovation works at present.
Last year's gathering was also scrapped because of the COVID-19 crisis.
