In Full: Rishi’s New Winter Economy Plan

Key takeaways:

  • A new grant scheme for businesses impacted by Tier 2, even if they are not legally closed. Local authorities will be funded to give direct cash grants. There will be enough funding to give every business premises in the hospitality leisure and accommodation sectors up to £2,100 for every month of Tier 2 restrictions.
    • The Tier 2 grants are worth 70% of value of grants for closed businesses in Tier 3.
    • The grants will be retrospective to August. Any area under enhanced restrictions can backdate their grants, so those who have been under higher restrictions for longer will receive more.
  • The Treasury will cover the full cost of employers paying 2/3 of salaries for workers who cannot work for a week or more at businesses who have to close.
  • For businesses which are able to open, employees will only have to work 20% of their hours to retain jobs and 2/3 of income, down from 33% previously.
  • The employer contribution for that has been slashed from 33% to 5%, applying to all businesses in all alert levels in England as well as across the devolved nations.
  • The next round of self employed income support will be doubled from 20% to 40% of people’s incomes, increasing the maximum grant to £3,750.

This is Rishi’s 11th Covid support package since becoming Chancellor: showing required flexibility or just making it up as he goes along?

mdi-account-multiple-outline Rishi Sunak
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