Chancellor announces additional support for businesses impacted by coronavirus restrictions

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Chancellor Rishi Sunak met with hospitality leaders before announcing the addition financial support. Photo courtesy of HM Treasury.

Chancellor Rishi Sunak this morning announced in the House of Commons that the government is introducing a new grants scheme for businesses impacted by Tier 2 coronavirus restrictions, even if they aren’t legally closed.

He believes this will be enough funding to give every business in hospitality, leisure and accommodation sectors a grant worth up to £2,100 every month Tier 2 restrictions apply.

These are additional to the grants of up to £3,000 available for businesses who have been legally required to close.

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Sunak said the grants will be retrospective, so businesses can backdate them to August, if they’ve been operating in areas with enhanced restrictions since then.

He confirmed: “In businesses legally required to close, as I’ve already announced, employers will pay people two thirds of their normal salary where they can’t work for a week or more; and the government will cover 100% of those costs.

“We’re doubling self-employed grants from 20% to 40%, meaning the maximum grant will go up from £1,875 to £3,750.”

The grants are available for all self-employed people (in all tiers of restrictions) who’ve stopped trading or have a significant fall in trade, with two further payments to come.

Furthermore, he revealed more funding for the Job Support Scheme, with the government now paying at least 62% for hours not worked, while the employer contribution is cut from 33% to 5%. Employees can now take home at least 73% of pay for working a new minimum 20% of hours.

Tags : businesscoronavirusfurloughgovernment
Clare Nicholls

The author Clare Nicholls

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