Rishi Sunak’s post-furlough plan: At-a-glance

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Chancellor Rishi Sunak has delivered a statement setting out plans to help workers and businesses hit by new coronavirus restrictions.

It includes plans for a jobs support scheme to replace furlough, help for the self employed, business loans and VAT cuts.

Here is a summary of the main points.

Jobs support scheme

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  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  • It will apply to staff who can work at least a third of their usual hours
  • Employers will pay staff for the hours they do work
  • For the hours employees can’t work, the government and the employer will each cover one third of the lost pay
  • The grant will be capped at £697.92 per month
  • All small and medium sized businesses will be eligible for the scheme
  • Larger business will be eligible if their turnover has fallen during the crisis
  • It will be open to employers across the UK even if they have not previously used the furlough scheme
  • The scheme will run for six months starting in November

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Support for the self-employed

  • The chancellor is extending the self-employed grant on similar terms to the jobs support scheme
  • A grant will be available to those eligible for the Self Employment Income Support Scheme Grant
  • The grant will cover three months’ worth of profits for the period from November to the end of January
  • It will cover 20% of average monthly profits up to a total of £1,875
  • A further grant will be available to the self-employed to cover February 2021 to the end of April

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Business loans

  • Bounce Back Loans will be extended from six years to 10, cutting monthly repayments by nearly half
  • Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years
  • The chancellor is also extending the deadline for the government’s coronavirus loan schemes to the end of November
  • Businesses struggling can choose to make interest only payments for six months and those “in real trouble” can apply to suspend repayments altogether for six months
  • Businesses will not see their credit rating fall as a result, the chancellor says

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Taxes

  • The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March
  • Business who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments
  • Self-assessment tax payers will be able to defer tax payments to January 2022