Chancellor Outlines Winter Economy Plan

ICC Response To Chancellor’s Winter Economic Plan
Business Round-Up – 28 September 2020

Chancellor Outlines Winter Economy Plan

The Chancellor Rishi Sunak today outlined additional UK government measures to support businesses and workers impacted by coronavirus across the UK.

It includes plans for a jobs support scheme to replace furlough, help for the self-employed, business loans and VAT cuts.

ICC has prepared a summary guide to all the new support measures announced today, you can find a link to this below.

Here is a snap summary of the measures:

Jobs Support Scheme

  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand;
  • It will apply to staff who can work at least a third of their usual hours;
  • Employers will pay staff for the hours they do work;
  • For the hour’s employees can’t work, the government and the employer will each cover one-third of the lost pay; and
  • The scheme will run for six months starting in November.

Support for the Self-employed

  • The chancellor is extending the self-employed grant on similar terms to the jobs support scheme;
  • A grant will be available to those eligible for the Self Employment Income Support Scheme Grant;
  • The grant will cover three months’ worth of profits for the period from November to the end of January; and
  • It will cover 20% of average monthly profits up to a total of £1,875.

Business Loans

  • Bounce Back Loans will be extended from six years to 10, cutting monthly repayments by nearly half;
  • Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years; and
  • The chancellor is also extending the deadline for the government’s coronavirus loan schemes to the end of November.


  • The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March; and
  • Business who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments;
  • and Self-assessment taxpayers will be able to defer tax payments to January 2022.

Read Summary Guide

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