The Chancellor of the Exchequer gave a statement in the House of Commons on 24 September announcing economic support measures for the next 6 months, including:
- Replacing the furlough scheme with a new Job Support Scheme starting in November, which will support businesses and employees who have lost hours due to the pandemic. There will be an equivalent scheme for those people who are self-employed.
- The cut in VAT to 5% for the hospitality and tourism sector will be extended to March 2021
- The Government will extend the repayment period for bounce-back loans to 10 years
Commenting on the statement, Steve McCabe MP (Birmingham Selly Oak) said:
“The Chancellor’s statement today, after months of uncertainty, is welcome but I am worried that it won’t go far enough. Sectors like hospitality and events which are still subject to restrictions need targeted support not just loans. Many people were excluded from previous support schemes so I hope when we see the detail they will not be excluded again.
“Unemployment has already shot up and is only set to get worse so I am disappointed the Chancellor didn’t say anything about retraining and reskilling people who have lost their jobs and how we are going to build a fairer greener economy coming out of Covid. It is right that the Chancellor has brought in the Job Support Scheme to help business and the self-employed over the next 6 months but where is the plan for the future?”