The furlough scheme has been extended by Rishi Sunak until the end of April 2021.
This announcement confirms that the government will continue to pay 80% of workers wages, into the next tax year.
Restrictions Will Remain In Place
Despite vaccinations being rolled out across the UK, the government has decided to keep the majority of restrictions in place for now.
The decision to gently relieve restriction won’t happen until everyone who is ‘at risk’ has received the vaccination.
However this decision has meant more uncertainty for businesses, as 2021 continues to look very similar to last year.
Businesses are struggling to navigate their way through the economic disruption and are still uncertain about the light at the end of the tunnel.
Those who are currently accessing to the government’s support schemes had expressed the need for these to continue.
All of this has led the government to ensure sure that businesses will get the support they need until restrictions are eased. They have done this by extending the government-guaranteed business loan schemes until the end of March.
- The Bounce Back Loan Scheme
- The Coronavirus Business Interruption Loan Scheme (for small & large businesses.
The furlough scheme will also be extended until the end of April 2021. So far this scheme has helped to protect 9.6million jobs across the UK.
Budget 2021 & Redundancies
Rishi Sunak has also announced that the Budget announcement will take place on 3rd March 2021.
The Budget is one of the most significant moments in the calendar year for business owners, and we’ll be working hard to help you understand how it will impact your business.
The Chancellor says this year’s Budget will explain the next part of the plan to tackle the virus and protect jobs.
The 3rd of March gives business owners 58 days until the furlough scheme draws to a close at the end of April.
This is so that businesses can give the required 45 day redundancy notice period, should the Budget announcement mean they will have to make redundancies.
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