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New regulations and support for hospitality
dunoonhotel • Sep 24, 2020
Winter support for the hospitality industry
This afternoon the Chancellor announced [3] a range of new measures
designed to assist businesses through the winter months. These measures
[4] rightly recognise the challenges facing hospitality and tourism
businesses as new restrictions are implemented that restrict their
ability to trade.
The key announcement was the replacement of the furlough scheme, due to
end in November, with a new Jobs Support Scheme. The support scheme is
designed to directly support existing jobs, recognising that for sectors
like hospitality many working hours will be reduced due to repressed
demand.
In order to qualify for the scheme, workers must work 1/3 of their
normal hours. If they do this, the Government and their employer will
each pay one third of their equivalent lost salary, enabling those on
the scheme to receive up to 77% of their overall salary. Anyone who is
in employment as of the 23 September will be eligible for the scheme.
This measure will begin on 1 November and will exist for 6 months. The
scheme is open to all SMEs; however larger businesses will have to prove
that their turnover has been negatively impacted by COVID-19. Businesses
are eligible even if they haven’t used the furlough scheme, and are
permitted to claim this support alongside the Coronavirus Jobs Retention
Scheme.
Other important measures announced by the Chancellor were the extension
of the various loan schemes that had been introduced to support
businesses through COVID-19. This included the introduction of the Pay
as You Grow loan scheme, which provides flexible repayment schedules of
between 6-10 years.
Other loan initiatives include:
* Increasing the deadlines for loan programmes until the end of
January
* The promise of a new loan scheme to be introduced in January.
* The deferral of VAT repayments in March. These can now be spread
across 11 different payment windows.
The Chancellor specifically referenced businesses in the hospitality and
tourism sectors and the VAT reduction to 5% that had been introduced
until January 2021. The Chancellor announced that this reduction will be
extended until 31 March 2021, providing welcome relief for businesses,
and recognising a key request of sector businesses.
The statement is broadly welcomed by the hospitality sector, as was the
recognition of the importance of hospitality businesses by all parties
during the following debate. UKHospitality will continue to work on the
sectors behalf to ensure that businesses are fully supported during this
time.
UPDATED DETAIL ON RESTRICTIONS
Since the PM’s announcement on the new restrictions, UKHospitality has
been in communication with Government to gain more clarity on the rules.
While we have now had sight of most of the regulations, there are still
areas where we are seeing clarity. We are continually updating our FAQs
and grid on the restrictions across the nation throughout the day. Both
our FAQs and grid can be found here [5]. Please email us at
CV19@ukhospitality.org.uk should you have a question regarding the new
restrictions.
Kind regards,
The UKHospitality Team
Government Guidance for Wales [9]
UKHospitality Guidance for Wales [12]
Government FAQs for Wales [15]
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United Kingdom
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