Article updated: 6th November 2020
England – Financial support
The Chancellor announced this week that the furlough scheme was to be extended to the end of March as part of new support measures to help businesses through the second lockdown in England. Here’s the latest updates:
- The Government will cover 80% of salaries up to £2,500 / month and you can choose to top this up – this includes employees who are already on reduced hours.
- The Self-Employment Income Support Scheme will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.
- Mortgage repayment holidays have been extended which means that you can still apply for a 6-month repayment holiday.
- The FCA (the financial conduct authority) has advised credit card and loan providers should be granted a payment holiday if you are facing financial difficulties.
- Properties with a rateable value of £15,000 or under will receive grants of £667 per two weeks of closure (£1,334 per month).
- Properties with a rateable value of over £15,000 and less than £51,000 will receive grants of £1,000 per two weeks of closure (£2,000 per month).
- Properties with a rateable value of £51,000 or over will receive grants of £1500 per two weeks of closure (£3,000 per month).
- Local Authorities are to be given extra funding with guidance from central Government stating clearly that it can be used to help businesses forced to close during the second lockdown. Please check your local authority website for more details as they are announced.
- business closure fund
- business hardship fund – this will be decided on a case-by-case basis
The support funds will be administered by local authorities, providing one-off grants to hospitality and other businesses required to close by the brake restrictions regulations.
The business closure fund will operate as a two-tiered scheme:
- a smaller grant of £2,875 for businesses with a Rateable Value (RV) of up to and including £51,000
- a larger grant of £4,310 for businesses with a RV of £51,001 or above, up to a maximum of £21,000 in total for any eligible business operating multiple premises
The discretionary business hardship fund will support some companies that can remain open but are directly impacted by the restrictions, including those that supply businesses that must close. It will also operate as a two-tiered scheme depending on
- a smaller payment of £1,440 for businesses with a Rateable Value (RV) of up to and including £51,000
- a larger payment of £2,155 for businesses with a RV of £51,001 or above, up to a maximum of £14,000 in total for any eligible business operating multiple premises
The ‘firebreak’ is due to end on the 9th of November and hospitality businesses will be able to reopen their doors to customers. There has been a range of financial support put in place including a lockdown discretionary fund and grants for rateable businesses. The details of which can be found here
The enhanced restrictions were put in place on the 16th of October and will stay in place for 4 weeks.
This useful guide outlines what you currently can and can’t do.
An updated support scheme for small businesses has been put in place where businesses that are forced to close receive £1,600 every fortnight that they are in lockdown, medium businesses £2,400 and large firms, £3,200.
The thresholds are:
- Small businesses with a Net Annual Value (NAV) of up to £15,000
- Medium businesses with a NAV of £15,001 to £51,000
- Large businesses with NAV of £51,001 or more
For more information can be found here