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