Yesterday, the government released its latest statistics on coronavirus support for businesses and individuals. As of the 5th July, 9.4 million jobs have been furloughed, an increase of 100,000 since 28th June; the total number of employers using the scheme remains consistent at around 1.1 million; and the total value of the claims made has now exceeded £27 billion. The self-employment income support scheme has received 2.7 million claims, at a total value of £7.7 billion.
The bounce back loan scheme continues to be the government’s most popular means of business recovery lending. As of the 5th July, the value of facilities approved is now close to £40 billion from 1.2 million applications. On the other hand, the government’s original Coronavirus Business Interruption Loan scheme, launched in back in March, has approved a total of £11.5 billion in loans through 107,309 applications.
In his Summer Statement to the House of Commons, the Chancellor made the following commitments:
- The government will pay a £1,000 bonus to businesses for each furloughed worker brought back and employed through to January 2021.
- There will be a temporary VAT cut from 20% to 5 % for those in the hospitality or tourism industries until the middle of January. In tandem with this announcement, the Chancellor announced the “Eat Out to Help Out” campaign where consumers will be given discounts or vouchers to use in cafes and restaurants during August.
- The unveiling of a new £2 billion kickstart scheme to help create more jobs for young people was also announced. It is expected that the monies will be used to subsidise six-month work placements for those on Universal Credit and who are aged between 16-24.
The Chancellor continues to come under growing pressure from unions and a coalition of charities, to extend the furlough scheme, especially for those who are deemed high-risk workers and those who cannot work at home. The criticism comes amid pledges from other European countries to extend their own versions of the furlough scheme until the end of the calendar year.
Finally, a new survey found that 88% of employees would not be comfortable returning to public transport for their commute for the rest of this year because of COVID-19 fears. 55% said they were generally uncomfortable about returning to the office and 71% said that they were planning on returning to the office in a phased or partial manner once it is safe to do so.
You can listen to today’s podcast here [Summer Statement and the Latest Support Statistics].