In order to continue to protect jobs, the Coronavirus Job Retention Scheme (CJRS – see details below) has been extended by one month to reflect continuing social distancing measures and “provide businesses with the certainty they need”.
The government’s furlough scheme will continue to the end of June, the Chancellor confirmed today. The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the 1 March to the end of May.
During the government press briefing the Sec of State for Business, Alok Sharma, was asked what the government could say to reassure the tourism sector about a summer holiday season. Sec of State for Business reiterated support announced for businesses – specifically for leisure and retail – business rates and grants of 25K plus the extension of furloughing for staff and that the govt wants to support them so that they can bounce back and have the staff in place when that happens.
The question follows Transport Secretary Grant Shapps’ recent comment that he would not book a summer break at the moment due to the current uncertainty
Chancellor expands loan scheme for large businesses
The Coronavirus Large Business Interruption Loan Scheme has been expanded to cover all viable firms. All firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million. The scheme, which will launch on Monday 20 April, will be available through a series of accredited lenders, which will be listed on the British Business Bank website.
Government is also clarifying the position for firms owned by private equity, which will be able to access the guaranteed loan schemes. This complements existing support including the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme for small and medium sized businesses.