Image credit: Jessica Taylor for the Financial Times
Rishi Sunak has just announced a government package to provide “significant extra support to protect jobs and livelihoods” across the UK to in the House of Commons moments ago.
Also, the government have decided to extend the Coronavirus Job Retention Scheme until March 2021, while promising that Lockdown 2 will not last any longer than the “start of December.”
To give people across the UK certainty over the winter, I can announce today that the furlough scheme will not be extended for one month – it will be extended until the end of March.
— Rishi Sunak (@RishiSunak) November 5, 2020
Employees will receive 80% of their usual salary for hours not worked, up to £2,500 a month. pic.twitter.com/WtTqOcR61a
Main points for businesses:
- The Furlough Scheme has been extended to the end of March 2021, which means the government will pay for up to 80% of employee wages (this will be reviewed in January as the government may ask employers to contribute more). Sunak stated that the furlough scheme encompasses all of the United Kingdom
- Support for the self-employed: support will increase to 80% of average profits which is up to £7,500 until the end of January 2021
- Cash grants of up to £3,000 per month for businesses which are closed
- £1.6bn for English councils so they can support the local economy and healthcare
- Businesses now have more time to apply for the loan scheme and the future fund
- The chance to top up bounce back loans and extension to the mortgage payment holidays
For a more comprehensive look at the government schemes and supports announced today by Chancellor Sunak, sign up to our newsletter by clicking here.
