States pay out £36m. in support for island firms
MAJOR States support schemes have paid out more than £36m. to businesses during the Covid-19 pandemic so far.
As of Wednesday, the payroll co-funding scheme had issued £28.9m. and the small business grant scheme £7.2m. Businesses will be able to apply for the second phase of the payroll co-funding support scheme from tomorrow.
This scheme is confirmed to last only until the end of September, with its existence beyond that under review.
Businesses in specified sectors that can demonstrate they are continuing to experience a significant drop in turnover as a result of the Covid-19 pandemic between 1 July and 30 September can apply for the funding.
This means that retail outlets (excluding essential retail outlets), restaurants and other food and drink businesses (excluding takeaways), travel agents and tour operators. arts, entertainment and recreation which act as tourist activities, visitor accommodation, event companies – such as those working in corporate events or weddings – and the taxi sector will be able to apply.
This support will take the form of a reimbursement scheme, as it did in the first phase, where eligible sectors can apply for 80% or 100% minimum wage for employees depending on the extent to which the business is impacted.
It will run on a monthly basis, which will reduce the number of times businesses have to apply, and will be available until 30 September.
Similar to the arrangements up until the end of June, eligible businesses with a turnover of more than 40% and up to 70% of normal levels will be able to apply for 80% of the minimum wage, with business contributing the remaining 20%, but those business that have seen their turnover reduce to below 40% of normal levels will still be able to apply for 100%.
‘It is acknowledged that other sectors and businesses, outside of those listed above, may be affected to some degree by the ongoing measures impacting travel and general Covid-19 conditions but for the vast majority of businesses this is not expected to be at a level requiring government support,’ a spokesperson said.
‘If, however, you believe your business continues to be heavily impacted then you can apply and your case will be judged on its merits, with the likely need for additional information.’
From 1 October, a grant scheme will be introduced to provide further support for visitor accommodation businesses, replacing the payroll co-funding scheme.
Its introduction was delayed after serious concerns were raised in the sector about what was being planned.
Further information on this will be provided soon.
The States intends to publish information about who has received public money during the crisis, but has yet to decide how and what information will be released.