Guernsey Press

States to support sectors hardest hit until March

PAYROLL co-funding will continue until March for those sectors hardest hit by continued Covid-19 travel restrictions.

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Deputy Peter Ferbrache, left, and Deputy Mark Helyar.. (28939677)

Since the States began supporting businesses, it has paid out a total of £35.31m. helping cover staff costs and £7.53m. in grants.

The biggest beneficiary has been the hostelry sector, getting £8.87m. in payroll support since 16 March and £620,000 through small business grants.

Since the island exited lockdown, fewer businesses have been eligible for support in this way and there has been an expectation that there would be more travel.

But high prevalence of Covid-19 elsewhere has meant this has not materialised.

‘The second wave that the UK and other jurisdictions are facing means we’re not seeing any increase in travel and businesses which rely on visitors are still struggling,’ said Deputy Mark Helyar, who leads on financial support measures for the Policy & Resources Committee.

‘The new Policy & Resources Committee has made an early decision to continue this support to give some clarity and assurance to those businesses for the coming months.

‘Having moved into phase 5c, our rules for the borders are now designed so that travel to the island is less restrictive for those coming from low-risk jurisdictions and that means we can expect to see more travel once the situation improves elsewhere, but for right now our neighbours and many countries globally are going through a difficult period and that inevitably impacts on some of our business sectors.’

Travel agents and tour operators; event companies such as those working in corporate events or weddings; taxi operators (subject to a cap of 80% payroll support) are all still eligible for payroll support and exceptions considered for other businesses heavily impacted by travel restrictions.

They can get either 80% or 100% of the minimum wage for employees.

A separate scheme is supporting the visitor accommodation sector.

States financial support from payroll co-funding has tailed off, it peaked at £10.92m. in April and was down to £1.39m. in September.

Construction was the sector that received the second highest amount of public money, £7.52m. with £6.37m. from the payroll help, and then the wholesale, retail and repairs sector, which totalled £7.3m. with £6.37m. supporting wages.