News

Business impacted by a further lockdown will get grants to pay staff as part of a new Job Support Scheme.

The Chancellor Rishi Sunak today announced the measures to support thousands of businesses which could be forced to close once again due to a proposed sweeping lockdown across the North of England.

Employees who work for UK firms forced to shut by law because of coronavirus restrictions will get two-thirds of their wages paid for by the government.

The grants will be paid up to a maximum of £2,100 per employee a month and the Treasury said they will protect jobs and enable businesses to reopen quickly once restrictions are lifted.

In addition, for businesses forced to close in England, the chancellor announced an increase in business grants – with up to £3,000 a month paid every fortnight.

The measures aim to support businesses who are already struggling after the initial restrictions put in place in March 2020.

Rishi Sunak called it an expansion of the Job Support Scheme, which begins on 1 November to replace furlough, and will be available for six months. The support announced today will be reviewed again in January.

The support will only apply to businesses that have to close as a result of government regulations, but as yet it is not clear which firms may have to close.

An update on regional restrictions, which could see pubs and restaurants shut in the worst-affected areas, is expected on Monday.

Amy Johnston, Manager at David Allen Chartered Accountants in Workington said: “The new package of measures announced today will be a welcome relief to those in the hospitality sector when facing the uncertainty of the winter months.  Being able to ensure that employees can be retained allows businesses to plan more effectively for the recovery of those businesses once restrictions are eased.

We will be working with our clients closely to assist them in planning for more uncertain times and ensure they can fully utilise the support available to them”

If you need any advice and support for your business during these difficult times, please get in touch with a member of our team.