Australia’s second largest city, Melbourne, has further eased lockdown restrictions imposed after a surge in coronavirus cases, allowing most children to return to school from next month and sending more than 125,000 people back to work.

Australia has struck supply and production agreements with pharmaceutical companies worth 1. 7 billion Australian dollars (£930 million) over two potential Covid-19 vaccines, one developed in the UK.

An outbreak in Australia’s second-largest city held steady on Tuesday, raising hopes the strict lockdown in Melbourne was working.

Australia’s hardest-hit state will make face coverings compulsory after reporting a new daily high of 723 confirmed coronavirus cases.