Chancellor's Winter Economy Plan
24th September 2020
Here are the key components of the Chancellors Statement today. Further details will follow soon.
New Job Support Scheme
- To be eligible, an employee must work at least 33% of their normal hours. For the other two thirds of the hours, the Government will pay a third and the employer will pay a third, so in total, an employee will receive 77% of the full pay (ie, the government will be paying 22.5% of wages)
- The scheme will run from six months from 1st November
- Large businesses will have to prove that they’ve been adversely affected by Covid to be eligible for the Job Support Scheme.
- The scheme will be available to all businesses and all employees, regardless of whether they have been part of the CJRS in the past
- The Self Employment Scheme will be extended on similar terms, covering 20 per cent of average monthly trading profits via a government grant.
Coronavirus Business Interruption Loans
- The application deadline for all coronavirus loan schemes – including the future fund - has been extended to 30 November
- Bounce back loans can be extended from 6 to 10 years under a Pay as You Grow scheme
- Businesses also move to interest only payments or suspend payments if they are "in real trouble" for up to six months.
- A new successor loan scheme will be launched in January
- The reduction in VAT to 5% from accommodation, hospitality and attractions is being extended to the end of the financial year.
- Businesses who deferred their VAT will no longer have to pay a lump sum at the end of March next year. They will have the option of splitting it into smaller, interest free payments over the course of 11 months