Coronavirus Job Retention Scheme: Leisure

(asked on 21st September 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of providing a sector-specific extension to the Coronavirus Job Retention Scheme for the sport and leisure sector.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
Shadow Secretary of State for Housing, Communities and Local Government
This question was answered on 28th September 2020

The Government recognises the extreme disruption the necessary actions to combat Covid-19 are having on businesses and sectors like sport and leisure across the UK. We are working intensively alongside the Department for Digital, Media, Culture and Sport to understand the long-term challenges facing the sector

We are introducing a new Jobs Support Scheme from 1 November. Employees must work a minimum of 33% of their normal hours, and in return, will receive at least 77% of their salary. For every hour not worked, the government and the employer will each pay one third of their remaining salary up to a cap of £697.92. Large businesses will be required to demonstrate that their turnover has suffered as a result of COVID-19.

It would be challenging to target the CJRS to specific sectors in a fair and deliverable way. It would also be difficult to target the CJRS at specific sectors without creating distortions, particularly as some firms work across multiple sectors.

The Government has provided unprecedented support for individuals and businesses during the pandemic, and on 24 September the Government announced additional support measures as part of the Winter Economy Plan. In addition to the new Jobs Support Scheme, the Winter Economy Plan includes measures such as:

  • The SEISS Grant Extension, which provides additional taxable grant funding to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade, but are facing reduced demand due to COVID-19;
  • An extension to the temporary VAT cut for hospitality and tourism businesses to March 2021;
  • An extension to the deadline for new applications to four of the COVID-19 loan schemes to 30 November; and
  • Help for businesses in repaying loans from Government-backed schemes through the Pay as you Grow scheme and allowing lenders to extend the terms of CBILS loans to up to 10 years.

Earlier this month, the Government also announced the Local Lockdown Grant Fund (now called the Local Restrictions Support Grants), to enable Local Authorities in England to provide business properties which are required to shut due to nationally-imposed local lockdowns with grants of up to £1,500 for each three week closure period.

We will continue to monitor the impact of government support with regard to supporting public services, businesses, individuals, and sectors such as sport and leisure as we respond to this pandemic.

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