Rishi Sunak’s plans to continue government support for companies and workers impacted by COVID-19 were widely welcomed following his speech in Parliament on September 24, 2020, but which measure will is working best for your company?
The chancellor’s plans to help firms remain viable during the ongoing COVID-19 crisis include a new Jobs Support Scheme (JSS) to protect workers resuming their jobs in a part-time capacity; help for businesses in repaying government-backed loans; and the New Payment Scheme, which gives up to half a million companies longer to pay their VAT. Under the VAT deferral plan companies will be able to make 11 interest-free payments during the 2021-22 financial year instead of a lump sum.
The chancellor’s JSS received backing on September 28, 2020, from The Confederation of British Metalforming (CBM). Ninety per cent of its members used the furlough scheme and 65 per cent said they would change their mind on future redundancies with further assistance. Set to be implemented from November 1 for six months, government will use the JSS to support viable jobs in businesses facing lower demand over the winter months due to coronavirus.
Companies that took out a Bounce Back Loan or took advantage of the Coronavirus Business Interruption Loan Scheme will now have 10 years to repay instead of six.
The UK is trying to open up again after the first wave of COVID-19 but Sunak’s measures demonstrate that the road to recovery will be long and difficult, particularly now that a feared second wave of the virus appears to be underway.
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