Business support cut in stage three

But with a move to stage three of the exit strategy expected to begin on Monday, P&R said it will be reducing support for some sectors, as they did at the start of stage two.

The committee said that it hoped the move to the next stage will ‘see those businesses who have not been able to operate at all until stage three benefit from high demand and a strong re-opening period as was the case following the first lockdown in 2020’.

Support will stop for all but some tourism-related firms which will be impacted due to the continuing restrictions on travel.

Companies which are deemed eligible for support in stage three will continue to receive it until the end of June, said P&R. At that point it will review the situation and decide if the measures should be extended.

‘As claims are submitted monthly in arrears, the committee wants to highlight this change now so that businesses are not surprised should they attempt to submit full claims at the beginning of April.’

The visitor accommodation sector is supported through a separate scheme which the committee has already decided to continue for another year.

Taxi operators have been supported since the first lockdown, and they will continue to be eligible for payroll co-funding, although this will be capped at 50% of minimum wage.

‘The ongoing restrictions on travel continue to have an impact on the sector, hence remaining eligible for support, but in light of the healthy demand for taxi services among the local population it is deemed that further support should be provided at this lower level, to balance against the cost to the taxpayer,’ said P&R.

The co-funding arrangements, excluding the visitor accommodation sector, have amounted to about £1.2m. a week for the first five weeks of this lockdown, but P&R expects this to reduce to about £100,000 a week in stage three.

‘We’re confident that many of those businesses that haven’t been able to trade at all, or where trade has been restricted, will be able to bounce back quickly,’ said P&R treasury lead Deputy Mark Helyar.

‘We know from the last lockdown there will be pent-up demand, whether in hospitality and night life, entertainment, recreation or retail.

‘And we’d encourage people to go out, enjoy those services and support their local businesses.’

. Details on which sectors will continue to be eligible for financial support can be found at http://bit.ly/3ts4y4p

. Any businesses with questions about the changes can email business.support@gov.gg or call 743803.