Business: Coronavirus

(asked on 17th November 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will introduce a mechanism for businesses to opt to close once they meet certain criteria to enable access to more appropriate financial support and furloughing schemes .


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 25th November 2020

Throughout the pandemic the government’s economic priority has remained the same: to protect jobs and livelihoods. Since March, the government has provided support for people, businesses and public services totalling an estimated £200 billion. We are committed to ensuring we take the right action at the right time to support individuals and businesses in every region and nation of the United Kingdom.

That is why we have a substantial support package available for businesses regardless of whether they are open or closed. The Chancellor recently announced that the Coronavirus Job Retention Scheme (CJRS) has been extended until the end of March 2021. This provides businesses with a grant to cover 80% of the wages of their employees. We have added additional flexibility so it can be used to cover reduced hours as well as for businesses that are closed. To date CJRS has support 9.6 million jobs at the cost of roughly £41.9bn.

Alongside the CJRS, businesses have also benefited from the access to finance schemes, including the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme. Under the BBLS, the government provides lenders with a 100% guarantee to enable them to provide loans between £2,000 and £50,000 to the smallest businesses across the UK with a simple, streamlined application process. All eligible businesses in the retail, hospitality and leisure sectors will pay no business rates in England for 12 months from 1 April 2020. Businesses will also benefit from the reduced rate of VAT for tourist attractions and goods & services supplied by the hospitality sector.

For businesses that remain open but are severely affected by restrictions can receive support through the Local Restrictions Support Grant (open), which provides up to £2,100 of support per month. They can also access one-off funding through the Additional Restrictions Grant, worth £1.1bn nationally and distributed by local authorities.

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