Today the Chancellor, Rishi Sunak, gave details of his Winter Economy Plan - a package of measures which will become available once the furlough scheme comes to an end at the end of October. He explained that while the furlough scheme was the right scheme to support the government plan at the start of lockdown there were now going to be more permanent changes to the economy and therefore the new plan would need to adjust.
The outline of the new plan is as follows:
The New Job Support Scheme will focus on encouraging people to go back to work and supporting viable businesses:
- it will run from November for 6 months across the whole UK
- to qualify staff must work at least 1/3 of their hours (for remaining hours not worked govt and employer will pay 1/3 each so minimum of 77% of wages paid)
- open to small and medium businesses (large businesses only if their turnover has fallen)
- also available to businesses who didn't use furlough scheme
Pay as you Grow Scheme
- this is an extension of bounce back loans in order to halve monthly repayments, or if needed to do interest only repayments
- extensions also available on other loan schemes (e.g. COVID business interruption loans) with an extension to apply until the end of the year.
Deferred VAT payments
Allowing payments of businesses VAT bills over longer time in 11 smaller repayments.
He also confirmed there would be similar extensions to the Self Employment Support Scheme.
Sunak did warn that some hard choices had to be taken and admitted that he simply cannot save every business.
BABTAC & CIBTAC Chair, Lesley Blair says 'We welcome the help this new emergency plan will provide to a great number of businesses in our sector to ensure they are able to bring staff back and assist with their salaries for the next 6 months together with the flexibility on paying back loans and VAT.
However we are well aware that for many businesses this does not go far enough and are very disappointed that our sector have still not been given the same reductions to VAT as the Leisure and Hospitality Industries even though we have highlighted this to government on countless occasions. Some Scottish businesses - those who are still not able to work at all due to restrictions there, will currently also not be able to qualify for the new job support scheme - something we have already highlighted to the Scottish government today. We will continue to draw attention to all these urgent issues on behalf of our members until we receive answers"
For full details of the plan outlined by The Chancellor today please click here
Test & Trace procedures became enforceable by law from the 18th September and today England and Wales have joined both Scotland and Northern Ireland by launching their own Test & Trace Apps. In England and Wales it is also mandatory for every business to display a QR poster - for more information and to download your QR poster please click here