Is it Rishi to the rescue? Here’s the latest…
The Chancellor, Rishi Sunak has today announced new financial support measures to protect jobs in businesses facing lower demand, due to COVID-19. The package of measures includes:
- A new Job Support Scheme:
- Focussed on keeping people in work, rather than paying for jobs that may no longer exist
- Supports jobs where people are working but on shorter hours
- To qualify, employees must work at least 33% of their hours, with employers and the government paying a third of the remaining wages each
- Open to all small and medium businesses – larger businesses will only qualify if their turnover has fallen
- Available to businesses across the UK, even if they haven’t used the furlough scheme before
- Starts in November and will be in place for six months
2. ‘Pay as you grow’ – the government’s Bounce Back loans will be able to be extended from six to ten years, which could halve repayment costs
3. Changes to the terms of other loans schemes – extension of government guarantee to up to ten years and an extension to the deadline to apply for all current loan schemes to the end of the year
4. More time and flexibility on deferred tax bills – businesses will be allowed to spread their VAT bill over eleven smaller payments with no interest
5. Self-Employment Income Support Scheme – government will support viable traders who are facing reduced demand over the winter months, covering 20% of average monthly trading profits via a government grant
