Chancellor Outlines Winter Economy Plan

The Chancellor Rishi Sunak today outlined additional UK government measures to support businesses and workers impacted by coronavirus across the UK.

It includes plans for a jobs support scheme to replace furlough, help for the self-employed, business loans and VAT cuts.

SCC has prepared a summary guide to all the new support measures announced today, you can find a link to this below which you are free to share with members.

Here is a snap summary of the measures:

Jobs Support Scheme

  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand;
  • It will apply to staff who can work at least a third of their usual hours;
  • Employers will pay staff for the hours they do work;
  • For the hours employees can’t work, the government and the employer will each cover one third of the lost pay; and
  • The scheme will run for six months starting in November.

Support for the Self-employed

  • The chancellor is extending the self-employed grant on similar terms to the jobs support scheme;
  • A grant will be available to those eligible for the Self Employment Income Support Scheme Grant;
  • The grant will cover three months’ worth of profits for the period from November to the end of January; and
  • It will cover 20% of average monthly profits up to a total of £1,875.

Business Loans

  • Bounce Back Loans will be extended from six years to 10, cutting monthly repayments by nearly half;
  • Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years; and
  • The chancellor is also extending the deadline for the government’s coronavirus loan schemes to the end of November.

Taxes

  • The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March; and

Business who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments; and Self-assessment taxpayers will be able to defer tax payments to January 2022.

 

Read Scottish Chambers Summary Guide By Clicking Here. 

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