The Chancellor Rishi Sunak MP has announced the next phase of economic support – the primary goal of which is to protect those in “viable” employment. The new ‘Jobs Support Scheme’ will replace the furlough scheme from 1 November.
Under the new Jobs Support Scheme, the Government will top up wages for workers for up to two-thirds of their hours worked for the next six months. Employers will pay the other third.
There are 3 principles behind Scheme: (1) supporting viable jobs, employees must work at least a two-thirds of their hours; (2) support will be targeted at small and medium enterprises; and (3) it will be open for businesses across the UK.
The scheme will open in November and run for six months.
All small and medium sized businesses are eligible as well as businesses who have not previously used the furlough scheme.
The self-employed scheme will be extended on similar terms to the Jobs Support Scheme.
The application deadline for all coronavirus loan schemes – including the future fund – has been extended to 30 November ensuring even more businesses can benefit from government-backed support.
Those who have taken out a government Bounce Back loan will have more time to pay them back.
VAT bills will be deferred until March and can be paid in 11 instalments.
The temporary VAT reduction for the hospitality and tourism sectors has been extended until 31 March 2021, cancelling the planned increase which was due to come into effect in January. VAT bills will be deferred until March and they can be paid in 11 instalments. Coronavirus Business Interruption Loans will also be extended for up to 10 years. There will be a new loan scheme in January.