Thu 22nd Oct 2020 - Chancellor announces further business support that ‘just saved hundreds of thousands of sector jobs’ Chancellor announces further business support that ‘just saved hundreds of thousands of sector jobs’: Chancellor Rishi Sunak has announced further support for businesses in tier two and enhanced the Job Support Scheme – a move that UKHospitality chief executive Kate Nicholls said has “just saved hundreds of thousands of jobs in hospitality and supply chain”. Sunak said his new three-step plan would provide funding for “every hospitality business that has clearly seen major impacts”. It includes a new grant scheme that is worth up to £2,100 for every month tier two restrictions apply, which will be backdated to August. These are additional to the grants of up to £3,000 available for businesses that have been legally required to close. Sunak said the government was also making the Job Support Scheme (JSS) “more generous to protect jobs during lower demand”. The government will now pay at least 62% for hours not worked while the employer contribution has been cut from 33% to 5% He said employees would now take home at least 73% of pay for working a new minimum 20% of hours. He added: “We will listen and respond as circumstances demand. A regional tiered approach is the right way to control the spread of the virus. But it is clear businesses that can stay open are seeing impacts on their businesses that are worse than hoped. A significant fall in consumer demand is causing significant harm to the hospitality industry.” Sunak also said the next round of self-employed support would double from 20% to 40%. Nicholls tweeted: “Huge and very welcome intervention by chancellor – JSS scheme evolves significantly to reflect changed circumstances. Just saved hundreds of thousands of jobs in hospitality and supply chain. Crucially, securing help for our teams but also giving businesses a lifeline to remain viable through continued trading where possible and a quicker and easier return to growth as restrictions ease. Thanks for listening and continuing to support the third largest employer.” Charlie Gilkes, co-founder of the Inception Group, tweeted: “Agreed. This is great news. Thank you Rishi Sunak for listening to us.” But Sacha Lord, night-time adviser for Greater Manchester and co-founder of Parklife and The Warehouse Project, said: “While any financial support is welcome, for many in Greater Manchester this is too little, far too late. Just before 10pm tonight, the chancellor will call last orders on many of our pubs and bars, for good. The whole supply chain forgotten, ignored and hung out to dry.” London Union founder Jonathan Downey tweeted: “First thoughts – far too little too late. This is his third attempt at next measures and another flop, I think. Some small and medium-sized enterprises will benefit from the grants and the improved JSS but I’m really struggling to find anything that will make a significant difference to enough businesses to save hundreds of thousands of jobs.”