Chancellor Rishi Sunak today offered his economic response to the news that the UK is midst the rising tide of a second wave of the COVID-19 pandemic.<\/p>\n
After weeks of wrestling over whether to proceed with a full Autumn Budget, the Chancellor has opted at short-notice to reserve HMT\u2019s firepower, likely until the Spring, when an economic reboot will be most needed. Instead, he chose to issue a Part 2 to his original \u2018Plan for Jobs\u2019 this summer, with a second \u2018mini-Budget\u2019 of measures targeted at sustaining viable jobs and limiting the economic hit faced over the coming months.<\/p>\n
This nimble approach has been broadly welcomed, including in a deliberately conciliatory (with a hint of \u2018I told you so\u2019) response from the Shadow Chancellor, as she looks to position the Opposition in the national interest \u2013 in keeping with Sir Keir Starmer\u2019s speech to the Labour Party Conference at the start of this week. The schemes to support business cash flow will come as a relief to many \u2013 particularly within the hospitality sector. The new \u2018Pay as You Grow\u2019 loans over a longer time period also reflects Treasury\u2019s approach of \u2018backing winners\u2019 to ensure value for money.<\/p>\n
However, the new Job Support Scheme, reflective of the existing German \u2018Kurzarbeit\u2019 scheme, does openly mark a significant downgrade on the existing furlough programme – deemed unsustainably costly. Which is why the Chancellor was clear \u201cI cannot save every business, I cannot save every job\u201d. These measures are about targeting support at those jobs and businesses which hold a genuine chance of recovery if they can be supported through the current uncertainty.<\/p>\n
However, asking employers to pay 55% of salaries for employees working only 33% of their usual hours is a difficult ask. As is the extension of the self-employment scheme at a reduced rate of 20% of average monthly trading profits. A rise in unemployment is seen, sadly, as unavoidable \u2013 which is why the Chancellor was at pains to emphasise that the responsibility for learning to live with this virus rests not only with the government, but with all of us.<\/p>\n
Job Support Scheme <\/em><\/strong><\/p>\n \u00a0<\/strong>SEISS (Self-Employment Income Support Scheme) Grant Extension <\/em><\/strong><\/p>\n Easing the burden on business<\/strong><\/p>\n Extending the temporary VAT reduced rate for hospitality and tourism <\/em><\/strong><\/p>\n The Government is extending four temporary loan schemes to 30 November 2020 for new applications. <\/em><\/strong><\/p>\n \u00a0<\/em>Pay as you Grow <\/em><\/strong><\/p>\n CBILS loan extension<\/em><\/strong><\/p>\n VAT deferral \u2018New Payment Scheme\u2019<\/em><\/strong><\/p>\n Enhanced Time to Pay for Self-Assessment taxpayers <\/em><\/strong><\/p>\n <\/p>\n Contact us <\/strong><\/p>\n Alan Boyd-Hall<\/strong><\/p>\n Head of Public Affairs<\/p>\n alan.boyd-hall@grayling.com<\/p>\n + 44 (0) 203 861 3783<\/p>\n","protected":false},"excerpt":{"rendered":"The Winter Economy Plan Chancellor Rishi Sunak today offered his economic response to the news that the UK is midst the rising tide of a second wave of the COVID-19 pandemic. After weeks of wrestling over whether to proceed with a full Autumn Budget, the Chancellor has opted at short-notice to reserve HMT\u2019s firepower, likely…","protected":false},"author":5,"featured_media":43621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[544],"tags":[],"class_list":["post-46798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-de-2"],"acf":[],"yoast_head":"\n\n
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