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.