Category Archives: Economic Statement

CHANCELLOR’S STATEMENT 24TH SEPTEMBER 2020 – COVID-19 SUPPORT FOR BUSINESS


CHANCELLOR’S STATEMENT 24TH SEPTEMBER 2020

COVID-19 SUPPORT FOR BUSINESS

As reported earlier the chancellor set out his much-awaited plans in the continuing struggle against the coronavirus pandemic and the effect that lockdown restrictions are having on businesses and individuals.

We await publication of full details of the latest proposals which are expected to be made available later today.

Check back on the KSK website for further information once the finer details have been revealed.

Meanwhile here is a summary of what Rishi Sunak had to say.

We are now entering a new phase of living with this current crisis, with a warning that lockdown restrictions are going to be with us for at least the next six months.

Rishi acknowledged that people are afraid and exhausted by the ebb and flow of the seemingly ever-changing government restrictions and rules that are having an impact on all our personal and working lives.

Despite this Rishi reassured us that there are reasons to be optimistic, for this I fear we may have some time to wait.

A whopping £12bn has been spent by the government on “Test and Trace” that has finally been launched today, I do hope that this proves to be money well spent.

Rishi then went on to outline what his plans were to protect jobs and the economy: –

COVID-19 SUPPORT FOR BUSINESS

A new Jobs Support Scheme will be launched for employees working and being paid for at least a third of their normal hours.  The government and employers will jointly increase their wages to cover two-thirds of their lost pay and the employee will keep their job.

Larger businesses must show that they have been adversely affected during the crisis.  Employers who have not previously used the furlough scheme will be eligible.

The new scheme will run for 6 months from November.

The existing grant for the self-employed will be similarly extended.

Bounce Back loan terms may be extended from six to ten years, reducing the outgoing payments to ease cashflow.

Payments can be made on an “interest only” payment and there will be options to suspend repayments for up to six months, credit ratings will be unaffected.

The government guarantee on Coronavirus Business Interruption Loans will be extended to 10 years and a new successor loan guarantee programme will be announced in January.

The temporary reduction of VAT from 20% to 5% on hospitality and tourism will now continue until 31st March 2021.

So has Rishi served a palatable dish of measures?  We will have to wait and see, meanwhile check back on www.ksk.co.uk for full details of the measures later.

Contact Paul Southward.


ECONOMIC STATEMENT 8TH JULY 2020


ECONOMIC STATEMENT 8TH JULY 2020

Delivering his Summer Economic Update in Parliament, the Chancellor announced a package of measures to support jobs in every part of the country, give businesses the confidence to retain and hire, and provide people with the tools they need to get better jobs.

The plan for jobs is the second part of a three-phase plan to secure the UK’s economic recovery from coronavirus. Throughout the pandemic, the UK Government has acted with speed to protect lives and safeguard jobs.

The first stage was a £160 billion support package, which included £49 billion of extra funding for the country’s vital public services including the NHS, paying the wages of nearly 12 million people and supporting over a million businesses through grants, loans and rates cuts.

As the UK enters the second phase in its recovery, the Chancellor’s plan is designed to support jobs by focussing on skills and young people, create jobs with investment in shovel-ready projects and greening our infrastructure, and protect jobs through a VAT cut for the hospitality sector and a landmark Eat Out to Help Out discount scheme for diners.

The Chancellor of the Exchequer Rishi Sunak said:

Throughout this crisis I have never been the prisoner of ideology. For me, this has never just been a question of economics, but of values.

We believe in the nobility of work. We believe in the inspiring power of opportunity. We believe in the British people’s fortitude and endurance.

Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.

The Chancellor said that following this second phase focusing on jobs, there will be a third phase focusing on rebuilding, with a Budget and Spending Review in the autumn.

Here is a summary of the proposals: –

Economic_Statement_Highlights