MNI BRIEF: UK Sunak Alters, Extends Job Support Scheme

UK Chancellor of the Exchequer unveiled a reformed job support scheme which will kick-in from November 1, with the current scheme expiring next month. The new scheme is centred on the government and employers topping up pay for employees who work shorter hours. Employees who work a third of their regular hours are set to receive 77% of their pay, with the extra cost evenly split between the state and the employer.

Alongside the job support scheme Sunak unveiled additional measures in his Winter Statement, including stretching out the period over which firms can pay back deferred value added tax, allowing them 11 months of interest free payments. The deadline for applications for business loan schemes has been pushed back to end November and income support covering 20% of average monthly profits for the self-employed has been introduced.

The fiscal arithmetic behind the moves is opaque, with the Office for Budget Responsibility, the official forecaster, not set to update its projections until November. Sunak did not respond in parliament to a question as to when the Finance Bill that had been expected to enshrine an Autumn Budget could be expected. The government had said the FB would be needed to fill out details on the trading arrangements with Northern Ireland laid down in the Brexit Withdrawal Agreement with the EU and all points on continuing contention in ongoing EU/UK FTA talks.