Covid 19 - What you need to know - Chancellor announces further financial support

The Chancellor has today announced further financial support for business with a focus on the Hospitality sector.

The Treasury’s summary of the measures announced can be found here which will include:

• Business contributions under the Job Support Scheme (JSS) dropping from 33% to 5%.
• To be eligible for JSS, an employee must now work an average of 20% of normal hours, reduced from 33%.
• Additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by the restrictions in high-alert level (Tier 2) areas; for effected businesses grants can be back dated to August.

An example given by the Treasury of how the JSS would work in practice is described as below:

“…..a typical full-time employee in the hospitality industry is paid an average of £1,100 per month. Under the Jobs Support Scheme for open businesses, they will still take home at least £807 a month. All the employer needs to pay is a total of £283 a month or just £70 a week; the government will pay the rest.”

In respect to of business grants, Local Authorities will receive funding equivalent of:

• For properties with a rateable value of £15,000 or under, grants of £934 per month.
• For properties with a rateable value of between £15,000-£51,000, grants of £1,400 per month.
• For properties with a rateable value of £51,000, grants of £2,100 per month.

Local Authorities will have discretion on how these sums are distributed however guidance from central government is anticipated.