Published: 5th November 2020
Updated: 17th December 2020
Rishi Sunak, Chancellor of the Exchequer, unveiled the Winter Economy Plan to support businesses and employees during the coronavirus pandemic. As the furlough scheme is due to end on 31 October, the next stage of the economic plan consists of a replacement for the furlough scheme and cash flow support to businesses most in need as we draw closer to the winter months.
As part of the Winter Economy Plan, the Job Support Scheme was due to replace the Coronavirus Job Retention Scheme from November 2020, however, the Chancellor announced that the Job Support Scheme will no longer come into force and will be replaced by an extended version of the furlough scheme until the end of April 2021.
Grant for self-employed workers are also extended.
The Winter Economy Plan announced that tax bills deferred to March 2021 can now be spread over 11 repayments and no longer need to be repaid by the end of the financial year.
The reduced 5% VAT rate for the hospitality and tourism sectors will be extended from January 13 to March 31, 2021.
As part of the Pay As You Grow initiative, the repayment period for Bounce Bank Loans and Coronavirus Business Interruption Loan Scheme (CBILS) loans will be extended from six to 10 years, with repayment holidays available.