Rishi Sunak’s post-furlough plan at a glance

BBC: It includes plans for a job support scheme to replace furlough, help for the self- employed, business loans and VAT cuts. 
 
Job Support Scheme

  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  • Workers must do at least a third of their normal hours
  • Employers will pay staff for the hours they work
  • The government and the employer will pay a third each for the hours they can’t work
  • It means someone working a third of their hours would receive 77% of their pay
  • The grant will be capped at £697.92 per month
  • All small and medium sized businesses will be eligible for the scheme
  • Larger business will be eligible if their turnover has fallen during the crisis
  • It will be open to employers across the UK even if they have not previously used the furlough scheme
  • The scheme will run for six months starting in November and replaces the “furlough” scheme
  • It means the government will pay a maximum of 22% of someone’s wages, down from 80% at the start of the furlough policy
Self-Employed Support Scheme

  • The chancellor is extending the self-employed grant on similar terms to the Job Support Scheme
  • A grant will be available to those eligible for the Self Employment Income Support Scheme Grant
  • The grant will cover three months’ worth of profits for the period from November to the end of January
  • It will cover 20% of average monthly profits up to a total of £1,875
  • A further grant may be available to the self-employed to cover February 2021 to the end of April, depending on circumstances

Business loans

  • Bounce Back Loans will be extended from six years to 10, cutting monthly repayments by nearly half
  • Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years 
  • The chancellor is also extending the deadline for the government’s coronavirus loan schemes to the end of November 
  • Businesses struggling can choose to make interest only payments for six months and those “in real trouble” can apply to suspend repayments altogether for six months 
  • Businesses will not see their credit rating fall as a result, the chancellor says

Taxes

  • The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March
  • Businesses who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments
  • Self-assessment income taxpayers who need to will be given more time to pay

For further information regarding the Winter Economy Plan and details visit the Gov.uk