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  • By AJ
  • 24th September 2020

Chancellor’s announcement: 24 September 2020

Chancellor’s announcement: 24 September 2020

Chancellor’s announcement: 24 September 2020 150 150 AJ

The Chancellor today announced a new range of measures to help businesses and individuals through the next six months. More details will emerge over the coming hours and days.

The Chancellor said the backdrop to the current announcements are:

  • “Nurture recover by protecting jobs”
  • There is a permanent adjustment to the economy
  • Any financial plan needs to adapt and evolve as the Covid-19 pandemic evolves
  • Support needs to be for people in viable jobs
  • Cannot save every business and every job

. The headlines are:

  • No autumn Budget this year
  • New Job Support Scheme
    • Support for viable jobs. Where someone can work for at least one third of their normal hours, the Government will cover up to two thirds of the remaining salary
    • It will be available to all SMEs and also to large businesses where turnover has fallen
    • Will apply to all employees even if they have not previously been furloughed
  • There will be further self-employed grants based on similar principles to the Job Support Scheme

Cashflow is vital, and so four key actions were announced

    • Bounce Back Loans: a “pay as you grow” system will be introduced giving between 6 to 10 years to repay the loans
    • Business Interruption Loans: the Government-backed guarantee will be extended to 10 years, and the availability of all loan schemes will be extended to the end of 2020
    • Deferred tax bills: deferred VAT bills can be spread over 11 smaller instalments, as will self-assessment tax deferred payments
    • Hospitality and Tourism: the reduced 5% rate of VAT will continue to 31 March 2021

 

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