Chancellor announces wage subsidy package and further measures to support business
The chancellor has confirmed that employers will be able to apply for a grant from HM Revenue & Customs to cover the salaries of employees who are not working due to CoVid-19 shutdowns. The grant will cover 80% of the salary of each retained employee who would otherwise have been laid off, to a maximum of £2,500 per month, backdated to 1 March. The process for applying for the grant and when the system will be operational has not yet been clarified, but further guidance is expected shortly. It is also unclear whether employees on reduced hours will also be covered.
The chancellor also announced further measures to support business including:
- VAT payments will be deferred. No businesses will need to pay VAT from now until 30 June. Businesses will have until the end of the financial year to repay the VAT bills.
- An extension of its coronavirus business interruption loan scheme, so it will be interest free for 12 months (up from 6 months)
These are in addition to measures to reduce business rates and other aid which were announced earlier this week.
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