At the end of September Guernsey's co-funded payroll scheme will stop offering financial support to businesses, BBC News reports.
Since April 1 businesses in the travel and tourism industry have been the only ones eligible to claim through the scheme. The States said the decision to end the support was based on an expected increase in travel activity.
The scheme paid 80 per cent of Guernsey's £8.70 minimum wage to employees up to 42 hours a week with businesses obliged to pay the remaining 20 per cent.
Guernsey entered a second lockdown in January so the payroll scheme was reintroduced.
The island has now moved to stage three of its exit plan and all COVID-19 restrictions have been lifted apart from travel rules.
Deputy Mark Helyar - Treasury lead for the Policy and Resources Committee - said, "The Payroll Co-Funding Scheme was never going to continue indefinitely.
"It was always the intention that this taxpayer-funded support would cease when trading conditions allowed businesses to operate at more reasonable levels, which is what we are starting to see."
Mr Helyar added that the government would continue to monitor the situation and listen to industry feedback.
Jersey and the UK have already announced similar plans, as the ends of their payroll and furlough schemes next month approach.
Guernsey's Policy and Resources committee reportedly confirmed that the Visitor Accommodation Scheme and the Visitor Attraction Scheme would continue until the end of March 2022.
The committee said that businesses in need of support beyond September can also consider applying to the Business Disruption Loan Guarantee Scheme (BDLGS). The scheme helps businesses that do not meet the criteria set by banks to borrow money.
The committee said it intended to publish a report detailing the cost of the payroll scheme to taxpayers.
Source: BBC News
(Links via original reporting)
At the end of September Guernsey's co-funded payroll scheme will stop offering financial support to businesses, BBC News reports.
Since April 1 businesses in the travel and tourism industry have been the only ones eligible to claim through the scheme. The States said the decision to end the support was based on an expected increase in travel activity.
The scheme paid 80 per cent of Guernsey's £8.70 minimum wage to employees up to 42 hours a week with businesses obliged to pay the remaining 20 per cent.
Guernsey entered a second lockdown in January so the payroll scheme was reintroduced.
The island has now moved to stage three of its exit plan and all COVID-19 restrictions have been lifted apart from travel rules.
Deputy Mark Helyar - Treasury lead for the Policy and Resources Committee - said, "The Payroll Co-Funding Scheme was never going to continue indefinitely.
"It was always the intention that this taxpayer-funded support would cease when trading conditions allowed businesses to operate at more reasonable levels, which is what we are starting to see."
Mr Helyar added that the government would continue to monitor the situation and listen to industry feedback.
Jersey and the UK have already announced similar plans, as the ends of their payroll and furlough schemes next month approach.
Guernsey's Policy and Resources committee reportedly confirmed that the Visitor Accommodation Scheme and the Visitor Attraction Scheme would continue until the end of March 2022.
The committee said that businesses in need of support beyond September can also consider applying to the Business Disruption Loan Guarantee Scheme (BDLGS). The scheme helps businesses that do not meet the criteria set by banks to borrow money.
The committee said it intended to publish a report detailing the cost of the payroll scheme to taxpayers.
Source: BBC News
(Links via original reporting)