Posted on: 25 September 2020
The UK Chancellor of the Exchequer Rishi Sunak has unveiled the government’s Winter Economy Plan, aiming to protecting jobs and support employment following the end of the Coronavirus Job Retention Scheme (CJRS) in October 2020.
Accountancy and business advisory firm BDO commented: “We welcome the measures announced on 24 September as they address the concerns of the UK’s economic engine: mid-market companies. Nearly a third of the mid-market companies we have surveyed are concerned about having to make redundancies and more than a third are struggling with cashflow.”
As the UK faces continued social distancing measures and restrictions to prevent the spread of COVID-19, the Chancellor announced a new job support scheme targeted primarily at small and medium enterprises with further subsidies of wages. He has also sought to improve businesses’ cashflow by extending the existing loan schemes and promising new loan schemes for 2021.
The UK government will also extend the reductions in VAT for the hardest-hit sectors of the economy – tourism and hospitality.