UPDATE:British business groups applaud Chancellor’s extra support scheme09/10/2020
Business groups around the UK cheered today as Chancellor of the Exchequer Rishi Sunak announced extra support for businesses in areas hit by local lockdowns. The Chancellor described this update to his jobs support scheme (which we discussed previously here) as providing a “safety net” for the businesses hit hardest by coronavirus lockdowns.
In a tweet, Sunak wrote: “Where the coronavirus restrictions legally require business premises to close, in any region or nation of the UK, we will help pay employees’ wages.” This new, expanded, Jobs Support Scheme will see eligible firms be able to claim two thirds of each employee’s salary (up to a maximum of £2,100) per month. Here are the key facts you need to know:
- Scheme open to ALL businesses legally required to close due to local lockdowns
- Government will now pay up to 67% of employees’ salaries (max: £2,100)
- Employers must still cover National Insurance payments and pension contributions
- Employees must be furloughed for at least seven consecutive days to be eligible for scheme
- Businesses with rateable value of up-to £15,000 can claim cash grants of £1,300 per month
- Businesses with rateable value of up-to £51,000 can claim cash grants of £2,000 per month
- Larger businesses are able to claim cash grants of £3,000 per month
- The above cash grants are only payable to businesses that have been closed for two weeks or more
The expanded jobs support scheme was widely praised by business groups around the country, with Dame Carolyn Fairbairn, head of the Confederation of British Industry, saying it would “cushion the blow for the most affected and keep more people in work.” Mike Cherry, chair of the Federation of Small Businesses, added:
“Thousands of small firms will be pleased to see the Chancellor embracing two of FSB’s suggestions to the Treasury for greater, targeted support for small businesses whose premises are enforceably closed by government lockdown. Evolving the Job Support Scheme to provide 2/3 of total salary costs together with enhancing existing cash grants for those faced with this scenario are both game-changers, and it’s welcome to see them adopted today.”
If your business has been affected by local lockdowns, call JW Hinks on 0121 456 0190. Our friendly, professional, and knowledgeable team can help you ensure that you are making the most of what you’re entitled to.