UPDATE 2-UK shares drop as job support scaled back; AstraZeneca weighs

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* Sunak delays ending hospitality sector tax cut
* New measures won't eliminate economic hit entirely -
analyst
* AstraZeneca's U.S. trials for COVID-19 vaccine yet to be
resumed
* Cineworld tumbles on weak earnings
* FTSE 100 down 1.3%, FTSE 250 drops 1.1%

(Updates market reaction after UK's new job protection
measures, adds closing prices)
By Susan Mathew and Shashank Nayar
Sept 24 (Reuters) - London shares dropped on Thursday,
hitting session lows after Britain scaled-back job support for
workers hit by the resurgent coronavirus pandemic, while
AstraZeneca slid as U.S. trials for its COVID-19 vaccine
remained on hold.
After two days of gains driven by new restrictions to curb a
resurgence in COVID-19 cases being less severe than expected,
the blue-chip FTSE 100 index .FTSE fell 1.3%, while the
mid-caps index .FTMC closed down 1.1%.
British finance minister Rishi Sunak unveiled plans to
extend loan repayments for businesses and delay ending a tax cut
for the hospitality sector.
But under a new programme to replace the job retention
scheme, which ends next month, government support will only be
available to workers whose employers keep them on at least a
third of their normal hours, Sunak said. While the measures will go some way to cushioning the blow
to economic recovery and limiting the long-term hit to
unemployment, it won't eliminate the hit entirely, said Ruth
Gregory, senior UK economist with Capital Economics, adding this
could see GDP stagnate in the last three months of the year.
Analysts also point to uncertainties stemming from possible
further restrictions and doubts about a trade deal with the
European Union by year-end. The travel and leisure sector .FTNMX5750 , the worst hit by
pandemic-induced restrictions to movement, was down 1.8%.
AstraZeneca AZN.L lost almost 3%. The U.S. Food and Drug
Administration is yet to approve the restart of clinical trials
of AstraZenaca's potential COVID-19 vaccine in the United
States, almost three weeks after it was paused. Cinema chain Cineworld CINE.L tumbled 14.8%, recording its
biggest single-day fall in over three months, as it swung to a
first-half loss and flagged risks to its ability to continue as
a "going concern".
Engineering firm Smiths Group SMIN.L slid on reporting a
23% drop in annual profit, while Pets At Home PETSP.L jumped
after saying it expects annual earnings to beat market
consensus.