Update - Furlough extended to April and £4.6bn support package unveiled

8th January 2021

With the country once again in full lockdown, Chancellor Rishi Sunak has extended the coronavirus job retention scheme (CJRS) until the end of April, as well as moving the deadline for Government-backed loan schemes to the end of March. The Chancellor said he wanted to give businesses “certainty and clarity” by extending support, enabling businesses to plan ahead for the next few months “regardless of the path the virus takes”. Read more here.

In addition, businesses are to receive a one-off grant worth up to £9,000 as part of a £4.6 billion support package. The funding is for businesses forced to close under new restrictions and is to be allocated based on property rateable value. The Government will provide £4,000 for businesses with a rateable value of £15,000 or under, £6,000 for businesses with a rateable value between £15,000 and £51,000 and £9,000 for businesses with a rateable value of over £51,000. Over 600,000 businesses are expected to benefit from the cash injection, available via applications to local authorities. The Government also announced 100% business rates relief for businesses in the retail, hospitality and leisure sectors, alongside £1.1 billion existing discretionary funding for local authorities. Read more here.