Furlough Scheme Extended and Further Economic Support Announced
The Coronavirus Job Retention Scheme has been extended for a month with employees receiving 80% of their current salary for hours not worked and further economic support announced.
The Chancellor announced that businesses across the UK will be provided with additional financial support due to the government‘s latest plan for the next phase of its response to the coronavirus outbreak.
This extension to the Coronavirus Job Retention Scheme (CJRS) also known as the Furlough Scheme was announced a few hours before it was due to end and make way for the Job Support Scheme. The Job Support Scheme, which was scheduled to begin on Sunday 1st November, has been postponed now, until the Furlough Scheme ends.
Under the extended scheme, the cost for employees of retaining workers will be reduced compared to the scheme which has just ended.
Business premises forced to close are to receive grants worth up to £3000 per month under the Local Restrictions Support Act.
Businesses required to close in England due to local or national restrictions will be eligible for the following:
For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.
Today’s announcements are only part of the government’s world-leading economic response to coronavirus – the largest package of emergency support in post-war history – to protect, create and support jobs.
The furlough scheme protected over nine million jobs across the UK, and self-employed people have received over £13 billion in support. This is in addition to billions of pounds in tax deferrals and grants for businesses.
£1.1bn is being given to Local Authorities.
For homeowners, mortgage holidays have also been extended.
The current Furlough Scheme will end in December, when England comes out of lockdown, the government says. Regions will then be classed into tears as before, based on the coronavirus risk level, and the Job Support Scheme will kick in as planned.
Michael Gove says it is his “fervent hope” that England’s new lockdown will end on 2 December – but that ministers will be “guided by the facts”.
The strict measures are due to come into force from Thursday.
Pubs, restaurants, gyms, non-essential shops and places of worship will close, but schools, colleges and universities can stay open.
The prime minister is expected to deliver a statement in the Commons on Monday before a vote on the latest restrictions on Wednesday. Labour has said it will back the lockdown.
Boris Johnson said he expects the lockdown to last until 2 December, after which England’s regional tiered system will be reintroduced.
You can read the Chancellor’s guidelines in full here.
To find out more visit our website – https://www.prestigebm.co.uk/
To Read our Monthly Financial and Tax Newswire Round-up – Click here.