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What you need to know this week

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What you need to know this week

Our round-up of the key business updates and insights for you.

November 27, 2020

Welcome to our weekly wrap. This week we’ve rounded up the latest news and insights, including a summary of the Spending Review and UK funding, an economic update, plus upcoming key dates for both the self-employed and furlough schemes.

Spending Review: Chancellor warns ‘economic emergency has only just begun’

The government’s support to get the UK through the pandemic will total £280bn as Chancellor Rishi Sunak delivered his Spending Review to the Commons this week.

Public sector pay

Pay rises for the public sector will be paused next year, with an exemption for more than 1 million nurses and doctors in the NHS. Around 2.1 million public sector workers who earn below the median wage of £24,000 will be guaranteed a pay rise of at least £250.

A new £2.9bn Restart Scheme

Sunak confirmed the government will spend £2.9bn on a Restart employment scheme to help more than one million unemployed people back into work.

National Living Wage will increase

The National Living Wage will increase by 2.2% to £8.91 an hour to extend this rate to those aged 23 and over, and an increase in the National Minimum Wage, meaning wage increases will likely benefit around 2 million people.

‘Levelling Up’ fund

The Chancellor also announced a new Levelling Up Fund worth £4bn. Any local area will be able to bid directly to fund local projects. Projects must command local support – including from MPs.

Departmental spending

Sunak says day-to-day departmental spending will rise in real terms by 3.8%, the fastest growth rate in 15 years. In cash terms, this will be an increase of £14.8bn on current levels.

The government will match EU funding for regional development after Brexit, while funding for communities to pilot programmes will be made next year.

UK economy to contract by 11.3% in 2020

Chancellor Rishi Sunak announced that the UK economy is set to contract by 11.3%, the highest fall in over 300 years, as a result of the COVID-19 pandemic.

In his November Spending Review, Sunak revealed the economy is predicted to grow by 5.5% in 2021, but economic output will not return to pre-COVID levels until the end of 2022, according to the Office for Budget Responsibility (OBR).

Sunak told MPs as restrictions are eased, the OBR expects the economy to start recovering, growing by 6.6% in 2022, then 2.3% in 2023, 1.7% in 2024 and 1.8% in 2025.

SEISS third grant applications open from Monday

Applications for the third self-employment grant may be made from November 30, 2020.

The coming grants will be calculated at 80 percent of three months’ average trading profits, paid out in a single installment.

The cap on this will be £7,500 in total, an increase from the previously announced amount of 55 percent.

The taxpayer must either be currently trading and impacted by reduced demand, or have been trading but be temporarily unable to do so due to coronavirus – as well as intending to continue to trade.

Key dates coming up for the Coronavirus Job Retention Scheme

November 30 – This is the last day on which employers can submit or change claims for periods ending on or before October 31, 2020.

December 1, 2020 – For claim periods from December 1, employers cannot claim CJRS grants for any days that their employee is serving a contractual or statutory notice period.

December 14, 2020 – In line with the new monthly deadlines for claims, this is the last day for submitting any claims for November.

January 2021 – Government will review the terms of the scheme.

Due to the fast moving nature of the current Covid-19 pandemic, we are endeavouring to cover as much of the critical news as possible. If you are self-employed or run a business and need assistance and advice on how the recent announcements could make a difference to you or your business, feel free to get in touch with the experts at Morgan Reach. Our business growth experts at Morgan Reach will guide you through what support is available for you or your business as well as the latest news that may affect you.

By |2021-01-06T11:22:23+00:00November 28th, 2020|News, Weekly News Roundup|0 Comments