The Chancellor, Rishi Sunak MP, held a press briefing this afternoon to outline the Government’s newest economic measures in response to the COVID-19 crisis. He said that the economic intervention to be introduced was unprecedented but necessary to save lives.
He announced a Coronavirus Job Retention Scheme for all workers in the UK which will cover 80% of the salary of retained workers up to the threshold of £2,500 per month.
Any employer in the UK will be able to contact HMRC to avail of this grant and it will cover wages backdated to 1 March. This will be open before the end of April for at least three months.
The Business Interruption Scheme will be interest free for 12 months instead of the 6 months originally stated. These loans are available from Monday.
The Chancellor also said that the next quarter of VAT payments for businesses would be deferred until the end of June. This is a direct injection of £30 Billion in cash to the economy.
Universal Credit payments are to be increased by £1,000 for a year. Tax Credits will also be increased by £1,000 for a year.
Minimum Income Floor will be suspended so that self-employed people can get Universal Credit equal to Statutory Sick Pay for employees.
Self-Assessment payments will be deferred until January 2021.
The Chancellor also announced that £1 Billion will go towards housing allowances which will aim to cover 30% of rents.
Prime Minister, Boris Johnson also said that cafes, restaurants, pubs must close tonight but that they can continue to provide a takeaway service. He also said that nightclubs, theatres, cinemas, gyms and leisure centres should also close.