[UK] “Winter Economy Plan” to protect jobs as COVID-19 restrictions increase

[UK] “Winter Economy Plan” to protect jobs as COVID-19 restrictions increase
30 Sep 2020

Chancellor Rishi Sunak has announced his “Winter Economy Plan” - a scheme intended to protect jobs during the pandemic - but has acknowledged that many will face an uncertain future. The chancellor unveiled the new measures as an attempt to ward off a winter jobs crisis when the current furlough scheme finishes at the end of next month and tougher COVID-19 restrictions are put into place.

The key announcements from Mr Sunak’s address include:

  • A new jobs support scheme to replace furlough. The government will "directly support" the wages of people in "viable" jobs working at least a third of their normal hours
  • A government top-up of a third of a worker's salary that would have otherwise been lost as a result of working reduced hours (capped at £697.92 a month)
  • An extension of the self-employed grant on similar terms as the new support scheme
  • A "pay as you grow" scheme allowing companies extra time to repay bounce back loans (over a period of up to ten years instead of six)
  • VAT will stay at 5 per cent for hospitality and tourism until March 31, 2021, instead of going back to 20 per cent in January
  • An extension to the deadline for taking out a coronavirus business interruption loan until November 30 and the government guarantee on the loan to be extended for up to 10 years

The chancellor emphasised that saving jobs was his priority, however, he admitted, "I can't promise that everyone can go back to the job that they used to have."

Sky News has further information on the measures and the response of economic experts.

Chancellor Rishi Sunak has announced his “Winter Economy Plan” - a scheme intended to protect jobs during the pandemic - but has acknowledged that many will face an uncertain future. The chancellor unveiled the new measures as an attempt to ward off a winter jobs crisis when the current furlough scheme finishes at the end of next month and tougher COVID-19 restrictions are put into place.

The key announcements from Mr Sunak’s address include:

  • A new jobs support scheme to replace furlough. The government will "directly support" the wages of people in "viable" jobs working at least a third of their normal hours
  • A government top-up of a third of a worker's salary that would have otherwise been lost as a result of working reduced hours (capped at £697.92 a month)
  • An extension of the self-employed grant on similar terms as the new support scheme
  • A "pay as you grow" scheme allowing companies extra time to repay bounce back loans (over a period of up to ten years instead of six)
  • VAT will stay at 5 per cent for hospitality and tourism until March 31, 2021, instead of going back to 20 per cent in January
  • An extension to the deadline for taking out a coronavirus business interruption loan until November 30 and the government guarantee on the loan to be extended for up to 10 years

The chancellor emphasised that saving jobs was his priority, however, he admitted, "I can't promise that everyone can go back to the job that they used to have."

Sky News has further information on the measures and the response of economic experts.

Leave a Reply

All blog comments are checked prior to publishing