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.
- 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.
- 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.