1. Jobs support scheme

• The Jobs Support Scheme will replace furlough from 1 November 2020 and will run for 6 months.
• Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
• Employers will pay staff for the hours they do work
• For the hours employees can’t work, the government and the employer will each cover one third of the lost pay
• The government grant will be capped at £697.92 per month
• All small and medium sized businesses will be eligible for the scheme
• Larger business will be eligible if their turnover has fallen during the crisis
• It will be open to employers across the UK even if they have not previously used the furlough scheme
• Workers must do at least a third of their normal hours
• It means someone working a third of their hours would receive 77% of their pay
• It means the government will pay a maximum of 22% of someone’s wages, down from 80% at the start of the furlough policy
• So for someone on £2,000 a month working 50% hours, they would get £1,000 normal pay plus £333 extra from their employer and £333 from the government.
• 2. Support for the self-employed

• The chancellor is extending the self-employed grant on similar terms to the Job Support Scheme
• A grant will be available to those eligible for the Self Employment Income Support Scheme Grant
• The grant will cover three months’ worth of profits for the period from November to the end of January
• It will cover 20% of average monthly profits up to a total of £1,875
• A further grant may be available to the self-employed to cover February 2021 to the end of April, depending on circumstances

3. Business loans

• Bounce Back Loans will be extended from six years to 10, cutting monthly repayments by nearly half
• Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years
• The chancellor is also extending the deadline for the government’s coronavirus loan schemes to the end of November
• Businesses struggling can choose to make interest only payments for six months and those “in real trouble” can apply to suspend repayments altogether for six months

4. Taxes

• The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March
• Businesses who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments
• Self-assessment income taxpayers who need to will be given more time to pay