The 'eagerly awaited' Chancellors' speech to the Commons today contains the following announcements. As ever, the Devil will be in the detail, but the breaking news is:-
Furlough definitely finishing end October
In it's place is a new Jobs' Support Scheme (as widely leaked)
This is going to work as follows:-
- Where employees are working for 1/3rd of their normal hours;
- They will be paid at their normal rate for that 1/3rd
- Of the remaining 2/3rds, the Government will pay 1/3rd and the employer 1/3rd
- This means the employee receives 77% of their pay (I've checked the maths, it is 1/3rd plus a 1/3rd of 2/3rds plus another 1/3rd of 2/3rds)
- All Small and Medium sized Entities are eligible, large businesses will only qualify if their turnover has dropped because of Coronavirus
- The scheme will be open for employers even if they didn't furlough anyone
The 15% VAT rate cut for tourism and hospitality is extended to 31st March.
Loan schemes have all been extended to 30th November (the CBILS scheme was due to finish end September)
Bounceback loans (which had a six year repayment) have had that period extended to ten years. In addition, once repayments and interest start then can be a six month payment holiday if needed. There are also provisions for it to be interest only. These have been dubbed 'Pay as you Grow'