Furlough can you go…local?

Published:  09 October, 2020

Businesses that have been ordered to shut as part of Coronavirus-preventative measures will see two-thirds of their wages for staff paid by the government in a targeted successor to the Furlough, Chancellor of the Exchequer Rishi Sunak has announced.

While garages are unlikely to be asked to shut, meaning the new scheme will not be directly applicable, it will mean customers who work at affected businesses still have an income, so garages will still get paid.

The new variant on the Furlough will be applicable from Saturday 1 November, the same date that sees the kick-off for the already announced Job Support Scheme. Recipients will be eligible to receive 67% of their pay, up to a maximum of £2,100 per month. The scheme is expected to largely apply to hospitality businesses, and will last for six months.

 Running alongside this scheme, the Chancellor also announced that there will also be greater grants for businesses that have been required to close in England, worth up to £3,000 a month, which would be paid fortnightly.

An update on restrictions, that could mean such businesses are shut in areas with high COVID-19 infection rates, is expected on Monday. This announcement is likely to also include the much-discussed new three-tier system, which is set to replace localised lockdowns with a more standard response.

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