Rishi Sunak’s new help for business and jobs at a glace
- Furlough scheme will be replaced with a Job Support Scheme (JSS) to ‘directly support’ wages of staff working at least a third of regular hours.
- Firms will pay workers for hours they work. For regular hours they cannot work, employer and Treasury will both pay a third of their wages, so they get two-thirds of pay for missed hours.
- JSS open to firms who have not used furlough.
- Self Employment Income Support Scheme Grant (SEISS) is extended, with a lump some to cover November to January next year
- It will be worth 20 per cent of average monthly profits, capped at £1,875.
- Second grant available for February to April 2021
- Bounce Back Loan guarantee term extended to 10 years from the current six.
- Interest-only periods of six months and payment holidays also now available.
- VAT cut from 20 to 5 per cent for firms in hospitality and tourism sectors is extended to March 2021.
- Other firms who have deferred VAT bills under New Payment Scheme will be allowed to pay it off in 11 interest-free payments in 2021-22 financial year instead of one full payment in March 2021.
- ‘Time to Pay’ self-assessment tax system extended to January 2022.
In this time of the pandemic and the impact it is having on our businesses and the workers it is comforting somewhat to know that it is Rishi Sunak in charge and not John McDonnell.
This impact on our economy is hard hitting and we are living in unprecedented times and I do believe that the Conservative Party and the Chancellor in particular, is doing the very best they can to see us through this.
They are torn between the choice of allowing people to go to work and risk the thousands of deaths that happened in the Spring, or try and curb what is happening and save the NHS and he is taking the right choice. It is a choice that I would not and could not take as it takes a special kind of person to lead the country through this time of horror.
We should applaud both Chancellor and Prime Minister for doing that.
Jonathan Geldart, Director General of the Institute of Directors, said: ‘These new measures should bring some relief to many directors fearing a harsh winter for their businesses and people.
Dame Carolyn Fairbairn, Director General of the CBI, said: ‘These bold steps from the Treasury will save hundreds of thousands of viable jobs this winter. ‘Wage support, tax deferrals and help for the self-employed will reduce the scarring effect of unnecessary job losses as the UK tackles the virus. Further business rates relief should remain on the table. ‘The Chancellor has listened to evidence from business and unions, acting decisively. It is this spirit of agility and collaboration that will help make 2021 a year of growth and renewal.’
British Chambers of Commerce Director General Adam Marshall said: ‘The measures will give business and the economy an important shot in the arm. ‘Chambers of commerce have consistently called for a new generation of support to help protect livelihoods and ease the cash pressures faced by firms as they head into a challenging and uncertain winter. ‘The Chancellor has responded to our concerns with substantial steps that will help companies preserve jobs and navigate through the coming months. The new Jobs Support Scheme will help many companies hold on to valued, skilled employees.’
Of course we can expect the incoming whinging from the Labour party and their shadow Chancellor who will offer nothing but noise of whinging and nothing of real use, because that is the way Labour behave. We saw that last night with Keir Starmer on the TV….a whole of nothing was offered and nothing to help fix it.
I know that there are some who will suffer and for them I am sorry, but it is far better than we have Mr Sunak in as Chancellor, as can you imagine the state of this country if it had been Labour?