Last week the Chancellor set out further financial support for those businesses who are most affected by the pandemic. The support package includes 3 further steps of business support.
The business grant scheme will be extended for businesses in any tier, even if not forced to close by law. Businesses eligible will receive cash grants up to £2,100 per month, these grants will be retrospective, with businesses in any area that has been under enhanced restrictions able to backdate their claims to August.
This will be welcomed news for those businesses who are hit by cash flow issues and uncertainty such as the hospitality, accommodation and leisure industries, alleviating pressure on many of those who have been particularly vulnerable to the economic impact of the pandemic.
There are also changes to the job support scheme. In tier 3 areas the government will now cover the full cost of employers paying two-thirds of people’s salaries where they cannot work a full week. The number of hours an employee needs to work to be eligible for the scheme will drop from 33% to 20%. The employer contribution to the hours not worked will reduce from 33% to 5%.
Overall, the government will now support 62% of the wages for hours not worked by employees, resulting in a maximum payment of up to £1,541.75. Whilst an improvement, it is the hope of the government that those businesses will be tempted to keep their staff on a limited-hours basis which will give them breathing room going into the winter months. With the closing of the Job Retention Scheme, employment figures released in the coming months will be vital in determining the success of the new Job Support Scheme.
Finally, there is further support for the self-employed. Government contributions for the self-employed will increase, with income support doubling from 20% to 40%, increasing the maximum grant to £3,750.
The significant support introduced by the government along with its Winter Economy Plan will hopefully see businesses through the winter months and into 2021. The Chamber will continue to encourage more support in order to protect livelihoods and preserve businesses.
For the latest support and guidance please visit our Coronavirus Business Support Hub here www.hwchamber.co.uk/support/advice/coronavirus-information.