It is welcome news that the Government has today announced an extension to the Coronavirus Job Retention Scheme (Furlough).
The scheme is being extended to support individuals and businesses who are impacted by disruption caused by coronavirus (COVID-19) this winter.
The furlough scheme will remain open until 31 March 2021. For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The £2,500 cap is proportional to the hours not worked. The government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more.
Furthermore, the self-employed grant is being raised from 55% to 80% of trading profits from November to January.
This on top of:
- Cash grants of up to £3,000 per month for businesses which are closed
- £1.1bn for councils in England to further support businesses over the coming months
- Extension of the loan scheme to the end of Jan and a top up Bounce Back Loan Facility
- Plus an extension mortgage payment holidays for homeowners
- And over £200bn on VAT relief, business rate relief, loans, tax deferrals and support for individuals
This extension is good news for the whole country, but especially our small and medium size businesses in Totnes and South Devon, many of whom rely so heavily on the tourism and hospitality sector that has been greatly impacted by Covid-19.
While this support is necessary and welcomed, I understand how difficult the next few months are going to be, so if you need any assistance you can find my contact details here:
0207 219 5579
Please do not hesitate to contact me.