Update on the Economic Landscape
The government has signaled that its priority is to protect jobs and has pledged to support businesses and employees through this tough time. Yesterday, the government announced a host of new support measures, including:
- Any employer will be eligible to collect 80% of the wages up to a cap of £2,500 per month for all employees put on furlough. Payments will be backdated to 1 March, last for a minimum of 3 months, and paid ‘within weeks’
- Businesses will be allowed to defer the next quarter of VAT payments until the end of the year. Businesses can also apply to receive interest-free loans for 12 months to cover financing commitments
- In addition, the welfare system will be strengthened, including increasing Universal Credit by £1,000 a year and the Working Tax Credit by £1,000
- An extra £1bn of support for renters through housing benefit and universal credit so the local housing allowance will cover at least 30% of market rents in a local area
A copy of the Chancellor’s latest statement can be found here.
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