Rishi Sunak unveils the government’s Winter Economy Plan to protect jobs and support businesses during the coronavirus (COVID-19) downturn this winter.
Chancellor announced new measures today to provide support to businesses and workers impacted by coronavirus across the UK.
A new emergency jobs scheme will be introduced to protect jobs during the coronavirus (COVID-19) downturn this winter, Sunak has announced.
The Jobs Support Scheme, which will replace the furlough scheme when it ends on 31 October, will see workers get up to 77% of their normal salaries for six months.
It aims to stop mass job cuts after the government introduced new measures in its Winter Economy Plan to tackle coronavirus.
The Chancellor said that employees will have to be working for at least a third of their normal hours to qualify for the new scheme, which begins on 1 November.
Between them, the government and the employer will then cover part of their salary for the remaining hours not worked.
The government will cover a third of this sum, capped at £697.92 per month, while firms cover a further third.
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The government has designed a Jobs Support Scheme to sit alongside the Jobs Retention Bonus.
In addition, the Government is extending the Self Employment Income Support Scheme Grant (SEISS). A third grant will cover three months’ worth of profits for the period from November to the end of January 2021. This will be worth 20% of average monthly profits, up to a total of £1,875.
Furthermore, through the government’s coronavirus loan schemes businesses will be able to repay money that they have borrowed.
Moreover, the government will extend a VAT cut for hospitality and tourism companies until March. The cut from 20% to 5% VAT – which came into force on 15 July – had been due to expire on 12 January next year.
Mr Sunak said:
“The resurgence of the virus and the measures we need to take in response, pose a threat to our fragile economic recovery.”
“Our approach to the next phase of support must be different from that which came before.”
‘The primary goal of our economic policy remains unchanged – to support people’s jobs – but the way we achieve that must evolve.’
Dame Carolyn Fairbairn, CBI Director-General, said:
These bold steps from the Treasury will save hundreds of thousands of viable jobs this winter. It is right to target help on jobs with a future, but can only be part-time while demand remains flat. This is how skills and jobs can be preserved to enable fast recovery.
Mike Cherry OBE, Federation of Small Businesses National Chair, said:
“The UK’s small businesses are facing an incredibly difficult winter. Today’s support package is the flipside of the coin to Tuesday’s COVID-19 business restrictions.”
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