An update on the announcements made by the Chancellor in response to the growing coronavirus pandemic, including the Coronavirus Job Retention Scheme.
20 Mar 2020, 2 min read
With the economic disruption deepening for businesses across the UK, the Chancellor once again announced a number of new economic measures to support businesses, individuals and employees. The CBI has been working closely with HM Treasury on behalf of businesses over the past few days to work through the support measures.
Coronavirus Job Retention Scheme
The Chancellor announced the Coronavirus Job Retention Scheme, which will be accessible for all businesses. The details of the scheme include:
- The government will pay up to 80% of furlough workers’ salary (up to £2,500 per month)
- This is a grant and the first grants will be paid within weeks; it should all be up and running before the end of April
- The pay will be backdated to 1 March 2020
- The scheme will run for a maximum of 3 months and employees cannot work during that period.
Coronavirus Business Interruption Scheme
- The loans will now be interest free for 12 months, not the previously indicated 6 months.
Q1 VAT payments will be deferred
- There will be no payments between now and the end of June
- Businesses will have until April 2021 to pay this back
- This is a £30bn package.
Additional measures
- The Chancellor also announced the Universal Credit standard allowance would be increased by 12% over the next 12 months
- The minimum income floor for Universal Credit will be suspended
- Self-assessment payments are deferred until January 2021
- The Chancellor also announced a £1bn support package for renters to cover around 30% of market rents.
For more details, check the government website here and please continue to get in touch with any thoughts and concerns via our dedicated inbox - coronavirussupport@cbi.org.uk.
