An overview of the UK government financial package for COVID-19 relief

By Zoe Feller, Simon Gough, Caroline Brown, Andrew Rink, Jason White

10-2020

The comprehensive financial support package offered by the Chancellor has continued to increase and evolve since his initial announcements during the 2020 Budget. The government revealed its Winter Economy Plan on 24 September, which introduced a new job support scheme, and extended a number of policies with the aim of providing further employment support, and easing the burdens on business. As we move into the next phase of the recovery programme, the government's support packages are intended to be more targeted with a new focus on the preservation of “viable” jobs rather than all jobs.  

The Job Support Scheme, which effectively replaces the furlough scheme, will run for six months from 01 November 2020, and will be available to all SMEs and larger businesses who can prove they have been negatively affected by the pandemic. This scheme was expanded on 09 October to give temporary support to businesses who will be legally required to close as a result of the Coronavirus restrictions set out by one of the four governments of the UK. Under the Pay as you Grow scheme, businesses that took advantage of the Bounce Back Loan Scheme will have extended options for repaying their loan. Other changes were announced to defer the repayment of business interruption loans, deferred VAT and deferred income tax.

In the attached PDF we set out the details of these funding initiatives, eligibility criteria and how to apply, as well as details of tax and VAT deferral arrangements.