New Job Support Scheme
To be introduced from 1st November, to protect jobs in businesses who are facing lower demand over the winter months due to Covid.
The scheme will run for 6 months.
Employers will continue to pay employees for the hours that they work, and for the hours not worked, the government and the employer will each pay one third of their equivalent salary.
Employees must be working at least 33% of their usual hours.
The grant will be capped at £697.92
The Job support scheme will be open to all UK businesses, even if they did not use the Furlough scheme.
Tax Cuts and Deferrals
The government will extend the 15% VAT cut for the tourism and hospitality sectors to the end March 2021.
Up to half a million businesses who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in March 2021, they will be able to pay in 11 smaller interest free payments during the 21-22 financial year.
Giving businesses flexibility to pay back loans
New pay as you grow flexible payment system to be introduced, providing flexibility for firms repaying a Bounce Back Loan.
Extension of the loan from 6 years to 10, which will cut monthly repayments by almost half.
Interest only periods and payment holidays to also be available.