Winter Economy Plan

Following a resurgence of the virus, the Chancellor has outlined the next stage of the Government's economic plan on how they will nurture the economy into recovery by protecting jobs through the difficult winter months.

Many businesses are operating safely and viably, but they now face uncertainty and reduced demand over the coming months.

It is now clear, as the Prime Minister and his scientific advisers have said, for at least the next six months the virus and restrictions are going to be a fact of life and the economy is now likely to undergo a more permanent adjustment.

The sources of economic growth and the kinds of jobs created will adapt and evolve to the new normal. Business needs to adapt and evolve in response.

The Chancellor also expressed the need to face up to the trade-offs and hard choices Coronavirus presents the Government.

As the economy reopens the Chancellor suggested that it is fundamentally wrong to hold people in jobs that only exist inside the furlough and suggested that we need to create new opportunities and allow the economy to move forward which means supporting people to be in viable jobs which provide genuine security.

He also confirmed that he could not save every business nor every job.

Once more details become available we will update our website. In the meantime, we have summarised below the Chancellor's new measures to help support business and bring people back to work and protect as many viable jobs as he can.

Coronavirus Loan Schemes

The application deadline for all coronavirus loan schemes has been extended to 30 November ensuring even more businesses can benefit from government-backed support.  This includes the:

Lenders have been enabled to offer Coronavirus Business Interruption Loan Scheme borrowers more time to make their repayments where needed.

More than one million businesses which have borrowed under the Bounce Back Loan Scheme (BBLS) will be offered the choice of more time and greater flexibility for their repayments.

This means:

VAT

To continue supporting over 150,000 businesses and protect 2.4 million jobs, the Government has extended the 15% VAT cut for the tourism and hospitality sectors to the end of March next year.

Businesses who deferred their VAT will no longer have to pay a lump sum at the end of March next year. They will have the option of splitting it into smaller, interest-free payments over the course of 11 months - benefitting up to half a million businesses.

Income Tax

Any of the millions of self-assessed income taxpayers who need extra help, can also now extend their outstanding tax bill over 12 months from January.

Self Employed

The Self-Employment Income Support Scheme extension will support viable traders who are facing reduced demand over the winter months, covering 20 per cent of average monthly trading profits via a government grant.

Job Support Scheme

From 1 November, for the next six months, the Job Support Scheme will protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19.

The full speech on the Gov.uk website

If you have any queries please contact us.

Send Message