May/June Issue 61 - Flipbook - Page 15
NEWS
CHANCELLOR EXTENDS FURLOUGH AND
LOAN SCHEMES
than one million businesses accessing
loans to help them through the crisis.
country will have certainty about what
support will be available to them.
Chancellor of the Exchequer Rishi
Sunak said:
The furlough scheme has been
extended until the end of April 2021
with the government continuing to
contribute 80% towards wages –
giving businesses and employees
across the UK certainty into the New
Year, the Chancellor announced
today.
Certainty for millions of jobs and
businesses as furlough scheme
extended until the end of April 2021
Businesses struggling will have now
until the end of March to access
government generous loan schemes
Chancellor also confirmed that the
Budget will be on the 3 March and set
out the next phase of the plan to tackle
the virus and protect jobs
In a move to ensure firms can access
the support they need through
continuing economic disruption, Rishi
Sunak also confirmed he would be
extending the government-guaranteed
Covid-19 business loan schemes until
the end of March.
These changes come ahead of the
Budget, which the Chancellor has
confirmed will take place on 3 March
2021. This will deliver the next phase of
the plan to tackle the virus and protect
jobs, so the extensions to the business
loan and furlough schemes enable
businesses to plan with certainty and
access support in the first few months
of the New Year ahead of the further
update on wider Covid-19 economic
support.
Businesses will also be given until the
end of March to access the Bounce
Back Loan Scheme, Coronavirus
“Our package of support for businesses Business Interruption Loan Scheme,
and workers continues to be one of the and the Coronavirus Large Business
most generous and effective in the world Interruption Loan Scheme. These had
– helping our economy to recover and
been due to close at the end of January.
protecting livelihoods across the country.
The schemes have already provided
“We know the premium businesses
over £68 billion in guaranteed loans,
place on certainty, so it is right that
and helped to keep afloat business in all
we enable businesses to plan ahead
sectors of the UK economy who have
regardless of the path the virus takes,
been impacted by coronavirus.
which is why we’re providing certainty
and clarity by extending this support, as We are extending the schemes now,
well as implementing our Plan for Jobs.” ahead of Christmas and further into the
new year, to ensure that businesses
Business Secretary, Alok Sharma, said: can continue to access the support they
need to grow and recover.
“While our loan schemes have provided
a vital lifeline to millions of firms across The government has already announced
the country, we know that business
that more support will be available
owners need additional certainty as we beyond March, through a successor loan
head into the New Year.
scheme. More details of the scheme will
be announced in due course, with the
“Extending government-backed loan
government providing a further update
schemes will give companies right
on wider Covid-19 economic support at
across the UK the finance they need to the Budget on 3 March.
support, protect and create jobs as we
build back better from the pandemic.”
The furlough and loan schemes are
part of the government’s wider plan to
The Chancellor said he would review
support, create and protect jobs through
the employer contribution element of the its Plan for Jobs. This includes the
CJRS in January, but decided to bring
Kickstart Scheme, more investment in
this forward to allow businesses to plan training and skills as well as the Self
ahead for the remainder of the winter
Employment Income Support Scheme
and the New Year.
grant, with a fourth grant being made
available from February to April 2021.
The government will continue to pay
80% of the salary of employees for
Further information:
hours not worked until the end of April.
Employers will only be required to pay
extending the CJRS until the end of
wages, National Insurance Contributions April gives businesses certainty well
(NICS) and pensions for hours worked;
ahead of the 45 day redundancy notice
and NICS and pensions for hours not
period, with Budget setting out the next
worked.
phase of support more than 45 days
before the new end date of the scheme
The eligibility criteria for the UK-wide
scheme will remain unchanged and
these changes will continue to apply to
all Devolved Administrations.
So far, the Coronavirus Job Retention
Scheme (CJRS) scheme has protected Extending the scheme until the end
9.6 million jobs across the UK with more of April means businesses across the
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