Throughout this pandemic the government has been committed to saving lives and protecting the economy. We have done this by providing over £200 billion pounds with of support since March, through grants, loans and tax relief to support businesses across the country.
We have already expanded the Job Support Scheme with the government covering two thirds of peoples normal wage if their employer has been legally required to close. We have also increased our support through cash grants and more help for the self-employed.
We are providing local authorities in Tier 2 or 3 with significant new funding to support public health. We have introduced a national funding formula of £1 per head in Tier 1 areas; £3 per head in Tier 2 areas; and £8 per head in Tier 3areas, to assist with public health activities such as local enforcement and contact tracing. That means nearly half a billion pounds for Tier 2 or Tier 3 areas, and comes on top of the more than £6 billion we’ve already provided to local authorities since the crisis began.
South Derbyshire remains in the Medium Local Covid Alert (Tier 1) so not all of these changes will affect us but it is welcoming to know the support is there if needed.
The following support has been announced for all Tiers which includes South Derbyshire:
The Job Support scheme is being made more generous so it is to keep staff on. Originally employees had to work 33% of their normal hours, this has now been reduced to 20%. The employer contribution of 33% will now be drastically reduced to just 5%. This will provide a significant amount of support to businesses facing a downturn in revenue and will protect jobs and livelihoods.
The government will also be increasing its contribution to those that are self-employed. The next round of self-employed income support will be doubled from 20% to 40% of peoples income, increasing the maximum grant to £3,750. Small businesses are at the heart of our economy and we will do all we can to support them.
I will continue to support local businesses in South Derbyshire and I welcome this new support being announced. I hope that it will provide them with some reassurance as we face these difficult and challenging times.
Tier 2 support announced:
This week we have gone further in our support for businesses affected by the coronavirus by introducing an even more generous Job Support Scheme, cash grants for hospitality and leisure businesses in High Local Covid Alert areas (Tier 2) who are facing a downturn in business.
For businesses impacted by new restrictions in Tier 2 and who aren’t legally required to close, we will be introducing new grants and it will be down to local Councils to decide how to distribute these grant. For every business in the hospitality, leisure and accommodation sector, a direct grant of £2,100 for every month Tier 2 restrictions apply. This is equivalent to 70% of grants available to closed businesses in Tier 3.
If any area has been under enhanced restrictions, these grants can be backdated to August which will provide extra support to areas and businesses who have been impacted by the coronavirus.
For business properties with a rateable value of £15,000 or under, grant will be worth £935 per month.
For business properties with a rateable value of between £15,000 and £51,000, grants will be worth £1,400 per month.
For business properties with a rateable value of over £51,000, grants will be worth £2,100 per month.
Tier 3 support announced:
To support employees we have announced that two thirds of employers normal wages will be covered if businesses are forced to close and over a billion pounds worth of up-front grants has been made available to local authorities to support businesses and protect jobs.
For business properties with a rateable value of £15,000 or under, grant will be worth £1,334 per month for businesses forced to close.
For business properties with a rateable value of between £15,000 and £51,000, grants will be worth £2,000 per month for businesses forced to close.
For business properties with a rateable value of over £51,000, grants will be worth £3,000 per month for businesses forced to close.