The global economy has been badly hit due to a crisis like no other. Therefore, we are seeing unprecedented action by our government to support jobs and livelihoods across the UK with over £160 billion of support.
We are also seeing legislation changes to help. Last week, the law was changed so that furloughed employees who lose their job will receive their full redundancy entitlements and not a reduced rate. The Coronavirus Job Retention Scheme has supported over 9 million jobs across the UK, but while it is estimated that half have already returned to work, others are losing their jobs. This new law will ensure all furloughed employees who are made redundant receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.
The Jobs retention scheme has been used by over 1.2 million employers to help protect 9.5 million people’s jobs at a value of £31.7 billion. The Self-employed income support scheme has been used by over 2.7 million people to the value of £7.8 billion. These schemes have been invaluable to local people in Crawley and below I’ve summarised how else the government are supporting jobs and employers.
• Over 57,200 loans have now gone out through the Coronavirus Business Interruption Loan Scheme for SMEs providing over £12.65 billion, with over 450 loans approved for the Coronavirus Large Business Interruption Loan Scheme, providing £3.10 billion worth of financing.
• Over 1.1 million Bounce Back Loans have been approved worth £33.68 billion.
• Over 876,000 firms have benefitted from £10.8 billion of business grants through the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund.
• Almost £10 billion of business rates relief has been provided for firms affected by Covid-19 – taken with existing measures around 1.1 million properties will pay no business rates in 2020-21.
• Over 496,000 VAT payments deferred by businesses to the value of £27.5 billion.
• Local authorities like Crawley and West Sussex have been supported with emergency funding that is totalling £4.6 billion nationally, with £300 million to support Test and Trace, and billions of pounds in easements to help cashflow.
Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group
5th August 2020