Local MP, Caroline Dinenage, has welcomed the unprecedented measures today that will work to protect jobs and businesses across Gosport, Hill Head, Stubbington and Lee-On-The-Solent who have been hard hit by the pandemic.
Caroline has been contacted by employers and employees alike, who have raised their concerns about the end of the furlough scheme in October. As cases of COVID-19 have risen in Hampshire and across the country, and new restrictive measures have been put in place, businesses have been rightly worried about their future and the economic impact of COVID-19.
The measures today set out in the Winter Economy Plan are aimed to reduce redundancies and support businesses who have taken out Government loans during the pandemic.
The 6 month Job Support Scheme starting in November employees will need to work a minimum of 33% of their usual hours and for every hour not worked the employer and the government will each pay one third of the employee’s usual pay.
To ensure parity those who are self-employed, the Self-Employment Income Support Scheme will be extended to cover 20% of average monthly earnings from November to January.
The 977 businesses in the Gosport Constituency who have taken out Bounce Back Loans worth over £25.5 million will be offered a ‘pay as you grow’ repayment scheme, cutting repayments by almost half as loans are extended for 10 years. In addition, the 57 local businesses using the Coronavirus Business Interruption Loan Scheme will also benefit from the 10 year extension of the Government guarantee.
Those businesses who deferred their VAT payments will also no longer have to pay a lump sum in March, but can spread their repayments over 11 smaller payments with no interest.
Importantly for museums, hotels and attractions in the Gosport Constituency, the 15% VAT cut for the hospitality and tourism sector will remain in place until March 31st 2021.
“Government support to my constituents throughout the pandemic has been a lifeline not only to our local economy, but their livelihoods.
“But government funding alone will not help businesses get back on their feet and our local economy bounce back. I continue to urge all Gosport residents to follow the guidance, stay safe and help keep our transmissions low.”