For the first time in our history, the British government is going to step in and help pay people’s wages – a scheme which is one of the most generous of any in the world – paying grants to support as many jobs as necessary. We will place no limit on these grants. Any employer in the country – large, small, charitable or for profit – who promises to retain their staff, can apply for a grant to cover most of the wages of people who are not working but are furloughed and kept on payroll, rather than being laid off. Government grants will cover 80 per cent of the salary of retained workers up to a total of £2,500 a month – above the median income. The cost of wages will be backdated to 1st March and will be open initially for at least three months – and we will extend the scheme for longer if necessary.
I have asked about the situation where someone has left their previous job with employer A, to start with employer B after the 28th Feb, only dto be laid off by B in March due to the economic impact of Coronavirus, meaning they would not qualify for furlough support through the Job Retention Scheme, where you must have been on the payroll prior to 1st March to be eligible. I can confirm that if employer A is willing to take the person concerned back on for the purposes of furloughing for the short term, that would be acceptable.
Deferring the next three months of VAT tax, a direct injection of over £30 billion of cash to employers, equivalent to 1.5 per cent of GDP. That means no business will pay any VAT from now until the end of June; and they will have until the end of the financial year to repay those bills.
The Coronavirus Business Interruption Loan Scheme will now be interest free for twelve months, an extension from the initial announcement of six months. We have already introduced and announced an extension to the Business Interruption Loan Scheme, which is for small and medium-sized businesses. On Tuesday, the Chancellor expanded the amount that can be borrowed from £1.2 million to £5 million, and we are now extending the time frame of no interest on these loans from six months to twelve months.
Please see the attachment below for the letter from the Chancellor
|Chancellor Letter||107.44 KB|