Chancellor announces new financial measures to help businesses and consumers

This evening the Chancellor announced a range of new “unprecedented” measures that are “one of the most comprehensive in the world” to help businesses and consumers financially cope with the Covid-19 outbreak.

In this evening’s announcement the Chancellor revealed that through its Coronavirus Job Retention Scheme it will provide UK businesses with a grant to cover 80% of wages of employees who are not working up to £2,500 per month. This grant can be back dated to the 1 March 2020 and will last for a minimum of three months. The Chancellor stated that there would be no limit to the amount of money the Government will pay towards this grant. These grants can be applied for through the HMRC and it is aiming for the first to be paid within weeks, with the grant completely rolled out by the end of April.

The Chancellor also announced that the Government was extending the interest-free period on its Coronavirus Business Interruption Scheme loan to 12 months. In addition to this, it was also announced that no business would pay VAT from now until June and businesses had until the end of the financial year to pay it back.

For consumers who are unemployed the Chancellor stated that the Government was increasing the Universal Credit standard allowance and Working Tax Credit by £1,000 for the next 12 months.

In a measure to help those who are self-employed the Chancellor revealed that through the universal credit they will be able to access the Statutory Sick Pay on offer for employees, which will entitle them to £94.25 per week. Those who are self-employed will also be able to defer self-assessment payments until January 2021.