BREAKING: New government support for hospitality businesses and jobs revealed

22 October 2020

Cash grants of up to £2,100 per month for every businesses under tier 2 restrictions, plus changes to the Job Support Scheme and doubling the grants for the self employed.

The Chancellor Rishi Sunak told Parliament that the grants for businesses in tier 2 are available to businesses that do not have to close and can also be backdated as far as August for those areas that have been under restrictions for longer.

Changes to the jobs support scheme now mean that employers will only have to contribute 5% of the wages for employees on reduced hours, while the government will pay 61.67% of employee wages if they're enrolled on the scheme. This applies to businesses adversely affected by the pandemic in any tier.

Employees will also only have to work 20% of their hours, whereas Previously they had to work a minimum of 33% of their hours to be eligible, and businesses had to a third of wages.

The Chancellor also said the government would double grants for the  self-employed from 20% to 40%, with a maximum grant of £3,750 for  self-employed people in all tiers who've stopped trading or have a significant fall in trade.

He said he made ‘no apology for responding to the changing circumstances,’ and had acted in response to talks with those in industries including hospitality, a sector he recognised ‘required further support’.

He was accused by the opposition of trying to achieve 'lockdown on the cheap', however as the measures do not go as far as those announced in March for the initial lockdown.

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