Coronavirus job retention scheme to end in October and a second grant for the self-employed
The Chancellor of the Exchequer, Rishi Sunak, announced on Friday (29th May) that the coronavirus furlough scheme will finish at the end of October.
From August 1st:
From September 1st
From October 1st
In addition, from July the government is introducing a “flexible furlough” scheme which will allow furloughed employees to begin returning to work under the system, setting their hours with their employers. Businesses will be required to pay 100% of employee’s salaries for days worked, with the Government topping up pay for time off on furlough.
Some 8.4 million workers have been furloughed under the current scheme, with employers’ claims under the scheme having reached £15bn so far. The scheme is expected to cost a total of around £80bn, equivalent to £10bn a month.
The Chancellor also announced that he has extended the self-employed income support scheme with a second and final grant capped at £6,750 will be available to the self-employed in August.
For more information on the Chancellor’s extension to the self-employment support scheme and the next steps of the furlough scheme please visit Gov.uk
All non-essential retailers will be able to reopen in England from 15th June
The Prime Minister announced yesterday evening (25th May) that all non-essential shops will be able to reopen in England by 15th June, with outdoor markets and car showrooms able to reopen from 1st June.
This announcement comes as part of the government’s next phase in the roadmap to ease the current lockdown restrictions and rebuild the UK economy. These steps will also see millions of workers in the retail sector able to return to work.
To be able to reopen shops must adhere to social distancing guidelines and new hygiene standards, more details of which can be found on the Gov.uk website.
The British Retail Consortium have welcomed the announcement, adding it provided "much-needed clarity on the route ahead".
A spokesman for the Confederation of British Industry added that the new guidance would help retailers to open "safely and securely".
Following the Prime Minister’s announcement on Sunday evening during which he laid out the first steps for the UK to leave the current lockdown conditions, the government has now published “Our plan to rebuild”, the government’s Covid-19 recovery strategy that explains how businesses and workers can take the next steps to return to life before the lockdown.
In addition, Chancellor Rishi Sunak announced an extension to the UK’s Coronavirus Retention Scheme until October in order to help businesses struggling with the effects of the pandemic retain their staff.
Extension of the Coronavirus Retention Scheme
Returning to work
Meeting family and friends
Pubs, restaurants and non-essential shops:
For more information on the government’s recovery strategy and to review the whole document, please visit gov.uk
“Sowing the seeds of our ultimate recovery” – Chancellor Rishi Sunak announces that 140,000 companies have already applied for the Coronavirus Job Retention Scheme which opened for applications at 8am this morning. Businesses that have applied should receive the equivalent of 80% of employee’s salary within six working days.
In addition to the current schemes, the Chancellor also announced a new Future Fund in the form of a £1.25bn support package for UK businesses driving innovation and development. The package includes:
More details on the government’s announced Future Fund support package can be found on the Gov.uk website.
Today’s announcements indicate that the government is thinking about the long term impact of the coronavirus and the lockdown measures on businesses and business funding. To ensure that as many businesses as possible can survive this difficult period it is crucial that the government continues to provide clear guidelines and support for businesses and business owners at this unprecedented time.
Changes to insolvency rules to allow firms “greater flexibility as they face the current crisis”: Latest announcements to help UK businesses
On Saturday, Alok Sharma, the UK business secretary announced new insolvency measures to prevent businesses unable to meet debts due to the impact of coronavirus from being forced to file to bankruptcy.
The announcement aims to allow directors to pay staff and suppliers even if they are concerned that the company could become insolvent and would allow more companies to “emerge intact the other side of the Covid-19 pandemic”. It is good to see that the government is making significant changes to policies during this time and protecting as many businesses as they can. However, for many businesses questions still remain as to what the next few months will look like.
“You have not been forgotten”: Measures announced to protect the UK’s self-employed workforce
Today the Chancellor had a clear message as he announced a series of measures to help the UK’s self-employed workforce. While he highlighted the difficulties that the diverse pool of the UK’s self-employed present, the package announced today should help 95% of the self-employed population and be targeted to those in the most need. The package included:
This is in addition to those measures introduced earlier by the Chancellor which included the Business Interruption Scheme and reducing the income floor so that self-employed workers can access universal credit. This is a difficult time for all businesses, but it’s encouraging to see the government’s commitment to protecting jobs as far as possible.
“You must stay at home” – Prime Minister Boris Johnson announces restrictions on people in the UK leaving their homes
On Monday night’s daily broadcast, Prime Minister Boris Johnson announced that from Monday evening, UK residents must stay at home to stop the virus from spreading between households. Here at Close Brothers we’ve produced a roundup of the government’s latest announcements and what this means for people across the UK.
People will only be allowed to leave their homes for:
The government will immediately:
For any employees that had been continuing to go to work, last night’s announcement has encouraged all employees that can be done at home to do so going forward. At Close Brothers we understand that these measures are likely to have a significant impact on businesses and how they continue to operate going forward. We will continue to share useful resources and articles to support you and your business navigate this difficult time. If you need advice on how to be productive when working from home please find our tips here.
“We will stand by you”- Government announces new measures to support businesses and employees
In Friday’s daily conference, the Chancellor announced what he called ‘unprecedented measures” in order to help British businesses weather the storm, and keep paying their employees. Here at Close Brothers we’ve put together a round up of all the measures announced which will impact businesses across the country:
As the Chancellor mentioned these are difficult times for all- particularly for small businesses. We, at Close Brothers are encouraged to see these measures introduced to support the UK’s businesses. We will continue to share updates as announced by the government as well as some helpful tips and guidance to help everyone survive and thrive in difficult times.