Essex businesses to receive more financial support
Rishi Sunak announced a number of measures to help businesses in areas with high coronavirus infection rates.
Last updated 22nd Oct 2020
It means businesses in Essex, which was moved to the 'high' Covid-19 alert level on 17th October with the exception of Thurrock and Southend, will receive more support if they are open but still struggling.
That includes businesses in the hospitality, leisure and accommodation sector, who fall into 'high' alert areas, will also be able to apply for cash grants of up to £2,100 per month.
According to the Government, the business grant scheme could benefit 150,000 businesses in England including hotels, restaurants, B&Bs and other who aren't legally required to close.
An increase in the Government's contribution to wage costs under the Job Support Scheme has also been announced, with business contributions dropping to 5%.
It means if someone was being paid £587 for their unworked hours, the Government would pay £543 and their employer would pay the remaining £44.
It will come into effect on 1st November and staff will only need to work one day a week to be eligible.
Self employed workers will receive more help under the Self-Employment Income Support Scheme too, with the rates being doubled from 20% to 40% equalling a maximum grant of £3,750 over three months.
Chancellor of the Exchequer, Rishi Sunak, said: "I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs.
"I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government’s stepped-up support can be part of the country pulling together in the coming months."
The news of additional support has been welcomed by Essex Chambers of Commerce, which believes it'll provide firms in the county some stability.
Director of Policy, David Birch, said: "It is a recognition, at last, that the Government sees the impact the coronavirus, and measures they have taken to manage it, have had on businesses.
"No business owner or manager wants to put their staff or customers at risk, but at the same time they've got keep their business viable, otherwise they will end up having to make people redundant."
He explained the additional restrictions imposed on the majority of the county have led to employees and employers being uncertain of what the future holds, leading to other issues on top of employment.
David continued: "It's also caused an impact in terms of affecting people's mental health. Whether that's people who are managing the businesses or employees wondering whether their job will be made redundant.
"So, this will be offering some measure of reassurance to everybody involved in the local business community."
The Essex Chambers of Commerce said they hope Essex will return to 'medium' risk so people can return to "some sense of normality" sooner rather than later.