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Chancellor's Winter Economy Plan

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

Self-Employment

  • 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

VAT

  • 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
Chancellor's Winter Economy Plan