One of the region’s leading accountants has welcomed the Chancellor’s creation of the new Job Support Scheme and the extension of the Self-Employment Income Support initiative.
The praise has come from chartered accountant and business advisor Alistair Hayward-Wright following Rishi Sunak’s winter financial update, where the Chancellor announced further measures to help save jobs and the struggling economy.
Under the Job Support Scheme, which starts for six months from 1 November, even if companies bring back their employees on a part-time basis, the Government will top up wages to at least three quarters of their full-time pay.
Mr Hayward-Wright, who advises clients across Birmingham and the Black Country, said that despite many commentators criticising the Scheme, he believes it will offer the support many need – including the self-employed.
He said: “These jobs schemes are great news for many businesses and their employees as there was a huge worry that when the successful furlough scheme ends on 31 October, we would be at a cliff edge.
“That would be difficult to pull back from without massive damage to the economy, so the new Job Support Scheme will help bring people back to work and vitally, can be used if businesses haven’t gone down the furlough route previously.”
Mr Hayward-Wright also backed the additional announcements from the Treasury which will see VAT payments deferred over an 11-month period, and the widely-backed 5% VAT reduction for the hospitality sector until March 2021.
He added: “Overall, I think it’s a great mix of measures from the chancellor to support businesses. I was concerned that targeted support to certain sectors wouldn’t work as it would undo a lot of the support seen previously.
“That hasn’t turned out to be the case and we can only pray now that lockdown measures introduced recently will have a positive effect in the long-term.”
For advice on how to access government support for businesses during the Covid-19 crisis, readers can visit www.haywardwright.co.uk to contact Alistair and his team.