New package of business support introduced by the Government
Warwickshire businesses and employees will benefit from the Chancellor’s new package of support to further protect jobs and companies.
Chancellor Rishi Sunak unveiled a range of measures on Thursday to allow the economy to move forward with the furlough scheme due to come to an end next month.
The Government has launched a new Jobs Support Scheme for six months to give businesses the option of keeping people in their jobs on shorter hours rather than making them redundant.
This will mean employees who work at least 33 per cent of their normal hours being paid for that as normal with the Government and employers jointly covering the remaining two-thirds of their lost pay so that employees keep their jobs.
This will target firms that need it the most, meaning all SMEs are eligible and only larger businesses if they can prove they have lost turnover during Covid-19.
The existing grant for self-employed people is to be extended on similar terms to the Jobs Support Scheme.
The Chancellor also announced a Pay as you Grow scheme for businesses to enable them to extend their Bounce Back Loans from six to 10 years which will halve their monthly re-payments.
The Coronavirus Business Interruption Loan Scheme along with all the other loan schemes the Government had previously introduced has been extended until the end of December, giving Warwickshire businesses more time to apply and take advantage of the loan.
The temporary reduction of VAT from 20 per cent to 5 per cent in some sectors will remain unchanged until March 31 next year, boosting the sub-region’s hospitality and tourism sectors.