UK Government Winter Economy Plan
Chancellor Rishi Sunak has announced a package of measures to support jobs and the economy. This is against a backdrop of rising Covid-19 infections and UK-wide restrictions, with more severe measures in specific hotspots.
For a transcript of the full speech delivered to Parliament click here.
There are also several factsheets:
Job Support Scheme
- replaces the Job Retention Scheme
- rather than being made redundant, employees will work on a part time basis: employers pay for the hours worked, while the Government and employer pay a further third each of the remaining hours not worked
- this will mean employers paying a slightly larger contribution than the hours that an employee works. More information here.
- all SMEs are eligible, however non-SMEs will be exempt unless their turnover has fallen
- open to companies who have not previously used the Job Retention Scheme
- employers who take up the Job Support Scheme can continue to claim the Job Retention Bonus
- self-employed grant extended on the same conditions as Job Support Scheme
- the self-employed grant would also be extended to help the self-employed and freelancers
Pay as you Grow
- bounce-back loans extended from 6 to 10 years, "nearly halving monthly payments"
- payments can be suspended for up to six months and credit rating unaffected
- Government will continue to guarantee coronavirus interruption loans for up to ten years
- deadline for loan applications has been extended to the end of this year
- a successor loan programme will begin in January
- businesses can spread their VAT bill over eleven smaller repayments with no interest
- will remain at the current rate until no sooner than 31 March 2021