UK’s economic rescue package
In a further move to aid the economy, Chancellor Rishi Sunak has announced the Government’s economic rescue package amidst the ongoing Coronavirus crisis. This follows the Prime Minister’s announcement that from tonight, all bars, pubs, restaurants, gyms, cinemas, night clubs and leisure centres are to close their doors.
Here is a summary of key points announced today:
Coronavirus job retention scheme
All businesses will be eligible to contact HMRC to apply for a grant for 80% of wages for employees who are not working, up to a maximum of £2,500 a month. This will be backdated to 1 March and will be open initially for 3 months, with extensions promised if necessary. Employers can of course top this up further if they choose to. Rishi Sunak said that there will be ‘no limit’ on the scheme.
Loans for businesses will be available from Monday
The Chancellor announced that the coronavirus business interruption scheme will now be interest free for 12 months, rather than 6 months as previously planned. It was advised that these would be available from Monday.
VAT breaks for business
In order to provide further cash flow support, the Chancellor said that he will defer the next quarter of VAT payments until the end of June.
Universal Credit allowance to be raised
The Universal Credit standard allowance is to be raised by £1,000 a years for the next 12 months. The working tax credit basic element is also to be raised by the same amount.
Support for self-employed
Self-employed workers will be able to access Universal Credit at a rate equivalent to statutory sick pay for employees.
Business rates abolished for worst affected sectors
Business rates are to be abolished altogether for businesses in retail, hospitality and leisure sectors.
Support for private renters
£1bn of support for renters will be provided by “increasing the generosity” of housing benefit and Universal Credit to cover “at least 30% of market rents”
Further guidance
The Chancellor advised that further guidance and information will be published in the coming days. This is expected to include guidance as to how any salary grants will be calculated for zero hour workers. As always, we will endeavour to update you as soon as this information is released.
This reflects the law at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought as appropriate in relation to a particular matter.
Latest Articles & Legal Insights
Support for businesses through the national lockdown
With a third national lockdown in force across the country, the government has announced the introduction of one-off top up grants.
Employment Law Update December 2020
This is a keynote summary of some of the main developments in employment law in the last month.
Will Brexit effect UK Employment?
The Withdrawal Agreement ensures people will continue to be able to benefit from their current workers’ rights based on EU law.
ICO issues detailed guidance on responding to subject access requests
ICO issues significant fines against British Airways & Marriott International Inc for well-known security breaches…
Employment Law Update – November 2020
Our employment law team bring you the latest talking points in the November update…
Extension to the Furlough Scheme
Only a matter of hours before being due to close, the Government announced that the Coronavirus Job Retention Scheme (Scheme) would be extended…
Contact Us
Sign up
Enter your email address for legal updates on Employment & Immigration Law.
Top read insights in 2019
Contract Law
Material Breach of Contract
What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts. What constitutes a material breach and what are the remedies?
Property Law
Purchasing Land – Option Agreements
A developer and a landowner can enter into an Option Agreement. What are the strategies that can be employed by both landowners and developers to assist in such land deals?
Divorce and Family Law
What are the Tax Implications of a Civil Partnership?
Is there a significant tax saving to be made by a couple who are married or in a civil partnership that cohabitating couples simply don’t qualify for?
Land & Property Dispute
Restrictive Covenants – The Price of Modification
Having identified that your land is burdened by a restrictive covenant and for the purposes of this article the covenant in question will be that only one residential building can be erected on the land. What do you do next?
Award winning legal advice
We are solicitors in Camberley, Wokingham and London. In 2019, Herrington Carmichael won ‘Property Law Firm of the Year’ at the Thames Valley Business Magazines Property Awards, ‘Best Medium Sized Business’ at the Surrey Heath Business Awards and we were named IR Global’s ‘Member of the Year’. We are ranked as a Leading Firm 2020 by Legal 500 and Alistair McArthur is ranked in Chambers 2020.









London
60 St Martins Lane, Covent Garden, London, WC2N 4JS
Camberley
Building 2 Watchmoor Park, Riverside Way, Camberley, Surrey. GU15 3YL
Wokingham
Opening Soon
info@herrington-carmichael.com
© 2020 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.
Herrington Carmichael LLP is authorised and regulated by the Solicitors Regulation Authority.
Privacy | Legal Notices, T&Cs, Complaints Resolution | Cookies | Client Feedback