The Chancellor made several surprise announcements today (17th December 2020). In what must be a response to the continuing resilience of coronavirus, he has extended the furlough scheme and the closing date for government-backed loan applications.
Details of the changes are:
The furlough scheme was due to end 31st March 2021. It has now been extended to 30th April 2020. Government support will continue at 80% towards hours not worked. Government-guaranteed loans scheme applications were due to end 31st January 2021. This end date for applications has now been extended to 31st March 2021.
Budget date for 2021 also announced
Ending further speculation and uncertainty, the Chancellor has confirmed that he will be making his annual budget presentation to Parliament, 3rd March 2021. Additional support for ailing small businesses may be included in his presentation.
What will this mean for you?
The furlough scheme extension for a further month is welcomed as we may still be experiencing COVID-related disruption during the first quarter of 2021. It means that you may be able to defer any decisions on staffing levels until the spring when hopefully, the vaccines will start to affect COVID infection levels, and perhaps the economy will be making slow progress towards recovery.
We can help
If you need help managing the practicalities of using the furlough scheme or reconsidering your options now that these new support measures are on the table, please call so we can help you reconsider your choices. If you have any questions, please contact us on 01473 744 700 or email us at contactus@accountinggem.co.uk.
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