CUMBRIA Chamber of Commerce says that the Chancellor’s new support package for businesses will reduce the number of job losses in the county this autumn.
Rishi Sunak’s Winter Economy Plan includes a new Job Support Scheme to run for six months to replace the existing furlough scheme, which ends in October.
He also improved the coronavirus loan schemes and gave businesses longer to apply, extended support for the self-employed, gave businesses more time to repay deferred tax and extended the VAT cut for the hospitality sector.
Chamber Chief Executive Rob Johnston said: “We were very worried about the end of the furlough scheme. South Lakeland and Eden had the highest proportion of furloughed workers in the country so Cumbria is really exposed.
“A British Chambers’ survey revealed that a third of businesses were planning to shed workers when the scheme ends. Cumbria’s already seen unemployment double since lockdown and it would certainly have gone a lot higher.”
Under the Job Support Scheme, the Government will top-up pay as long as employees work at least a third of their usual hours. The Government and the employer will each pay one third of their salary for the hours not worked.
Rob said: “The new scheme isn’t as generous but it’s a lot better than doing nothing and it will reduce job losses. It won’t save businesses beyond the point of no return but it will help those that have a future to make a go of it.”
He added: “There are a lot of self-employed businesspeople in Cumbria so we’re pleased that he’s extended the Self-Employment Income Support Scheme.
“The tweaks to the loan schemes and the extra time to repay deferred tax will help with cashflow, which is probably the number one issue for businesses.
“And extending the five per cent VAT rate for hospitality until March 31 – it was due to end in January – will help the sector get through what’s going to be a tough winter.
“Overall, we’re relieved that he’s acted and welcome what he’s done. It works particularly well for Cumbria. However, he will need to do more if the Government tightens lockdown restrictions further.”
There is more detail on the Chancellor’s measures in the Chamber’s Restart Toolkit at:https://www.cumbriachamber.co.uk/news/28573-restart-rebuild-and-renew
Cumbria Business Growth Hub has details of changes to the coronavirus loan schemes at: https://cumbriagrowthhub.co.uk/news/26185-how-to-access-finance-to-get-your-business-back-on-track
These include allowing businesses to repay Bounce Back loans over 10 years, rather than six, and allowing payment holidays and interest-only periods of up to six months.
