Furlough goes on and business loans deadline extended

Published:  17 December, 2020

The Furlough has been extended for an extra month, and businesses will have an extra two months to access the government’s business loan schemes, it was announced today (Thursday 17 December).

Chancellor of the Exchequer Rishi Sunak has opted to continue the Coronavirus Job Retention Scheme until 30 April 2021. It had been due to come to an end on 31 March, having already been extended from an earlier 1 December 2020 cut-off. 

 The Furlough will remain at 80% of usual wages, up to a maximum of £2,500 per month. Commenting on the move, he said: “We will continue to pay 80% towards wages of unworked hours, giving businesses and employees across the UK certainty into the New Year.”

The Chancellor also revealed that 3 March will be the date of his first Budget, which point he will lay out his plan to deal with the impact of Coronavirus and move the economy forward.

Meanwhile, the deadline for businesses to access the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme has also been extended. This has moved from 31 January 2021 to 31 March, adding two months.

Commenting on this extension, Business Secretary Alok Sharma said: “Extending government-backed loan schemes will give companies right across the UK the finance they need to support, protect and create jobs as we build back better from the pandemic.”

The announcements came on the same day that 60 areas of the UK were moved up into Tier 3 restrictions, and just a day after it was confirmed that plans for a relaxation at Christmas would go ahead, although the Welsh government is looking to roll out a tighter Yuletide rules regime.

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