A new Job Support Scheme, announced by the Chancellor, Rishi Sunak, will be introduced from November 1, designed to protect viable jobs in businesses that are facing lower demand over the winter months due to coronavirus.
Under the scheme, which will run for six months and help keep employees attached to the workforce, the Government will contribute towards the wages of employees who are working fewer hours than usual because of lower demand.
Employers will continue to pay the wages of staff for the hours they do work – but for the hours not worked, the Government and the employer will each pay one third of their equivalent salary. So, employees who can only go back to work on shorter time will be paid two thirds of the hours for those hours they cannot work.
The Chancellor is cancelling a planned increase in VAT, and keeping a lower rate of VAT for hospitality and leisure firms March 31 2021. All the government’s state-backed loan schemes will be extended until the end of 2020, and the government is starting work on a new guarantee loan programme to begin in January. The Chancellor will also allow businesses to spread their VAT bills over 11 separate paymentsTags: Chancellor VAT, Coronavirus, Covid, Job Support Scheme, jobs, Rishi Sunak, support