The Chancellor Rishi Sunak today outlined additional government support to businesses and workers impacted by coronavirus across the UK.
Support for workers
A new Job Support Scheme will be introduced from 1 November. Employers will continue to pay the wages of staff for the hours they work, but for the hours not worked, the government and the employer will each pay one third of their equivalent salary.
Support for the self employed
Extension of the Self Employment Income Support Scheme Grant (SEISS). An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.
Tax cuts and deferrals
The government announced it will extend the temporary 15% VAT cut for the tourism and hospitality sectors to the end of March next year.
Flexibility to pay back loans
A new Pay as You Grow flexible repayment system will provide flexibility for firms repaying a Bounce Back Loan. This flexibility will be offered to CBILs lenders also with deadlines extended for both loan schemes.