Chancellor confirms updated business support

Rishi Sunak has announced the government will increase its winter support scheme in a bid to protect jobs and help to contain the virus.

The chancellor is increasing support through the existing Job Support and self-employed schemes, and expanding business grants to support companies in high-alert level areas.

Job Support Scheme

When originally announced, the Job Support Scheme (JSS) – which will come into effect on 1 November – saw employers paying a third of their employees’ wages for hours not worked, and required employees to be working 33% of their normal hours.

The recent announcement reduces the employer contribution to those unworked hours to 5% and reduces the minimum hours requirements to 20%, so those working one day a week will be eligible.

That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer £44.

The government will provide up to 61.67% of wages for hours not worked, up to £1,541.75 per month. The cap is set above median earnings for employees in August at a reference salary of £3,125 per month.

Employers will continue to receive the £1,000 Job Retention Bonus. The JSS Closed for businesses legally required to close remains unchanged.

Business grants

The chancellor has also announced approved additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector which may be adversely impacted by the restrictions in high-alert level areas.

These grants will be available retrospectively for areas who have already been subject to restrictions, and come on top of higher levels of additional business support for local authorities moving into Tier three.

Self-employed grant

The government has increased the amount of profits covered by the two forthcoming self-employed grants from 20% to 40%, meaning the maximum grant will increase from £1,875 to £3,750.

‘Genuinely insulting’

Operators have voiced mixed opinions in reaction to the chancellor’s announcement.

Tom Brown, chef patron of Cornerstone in Hackney Wick, called the latest business support extension ‘genuinely insulting’.

“Five hundred pounds a week is nothing,” he says, “for us to us that’s around seven or eight customers’ worth of takings – this week alone we had 100 cancellations.

“It’s like they’ve taken all the food off the table and thrown us a scrap, while expecting us to be grateful. But then again these are the same people who voted for no free meals for hungry children, so what do we expect.”

Meanwhile, Jack Stein, chef director of Rick Stein Group, and founder of Warwickshire-based Libertine Burger Charles Harries were more encouraged by the announcement.

“I welcome the news of the new grant, especially for those in cities like Manchester and London who are being particularly hard hit by Tier Two restrictions,” Stein comments.

“Fortunately for us as a company, we only have one site in Tier Two, but it’s reassuring to know that if the south west is added to the list, we will have some support to fall back on.”

For Stuart Proctor of The Stafford Collection, it’s too little, too late: “In all honesty the new grant is quite an unimpressive amount for UK hospitality, what’s that going to do to help us going forward?” he asks.

“Of course, I’m glad we’ve got some support, however looking at London in particular, it’s just not going to touch the sides.

“Since the curfew was brought into place, revenue has dropped by 35% for us across Norma and The Stafford and that just keeps getting worse with the introduction of Tier Two.”