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Chancellor’s announcement

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The Chancellor of the Exchequer continues to impress in following up his announcement of the cancellation of the Autumn statement with a number of measures, framed as a Winter Economy Plan, and targeted to protect jobs through the difficult winter months. These included:

  • A job support scheme to replace the Furlough scheme when it closes at the end of October. This will require employees to work at least one third of their hours and to be paid as normal and the government and employers will cover the remaining two thirds. The scheme will be more focussed than the furlough scheme and can be accessed by all SMEs and by larger businesses that have seen their turnover fall during the Covid crisis.
  • An extension to the self-employed grant on similar terms.
  • Tax bills which had been deferred to March 2021 will no longer need to be paid in full by the end of the financial year but can be spread over 11 smaller repayments.
  • Targeted support for the hospitality and tourism sector with the lower 5% VAT rate being extended to March 2021.
  • Bounceback loan repayment periods extended from six to ten years with repayment holidays available.
  • Government guarantee for CBILS loans extended to 10 years.
  • Plans for a successor loan programme that is set to begin in January

Please find a more in depth overview here.