Replacement of Coronavirus Support Schemes With More Targeted Assistance — 9 Sep 2020 at 15:52
The majority of MPs voted against replacing the Coronavirus Job Retention and Self-Employment Income Support Schemes with more targeted support for businesses and self-employed people.
The Coronavirus Job Retention scheme[1] funds 80% of regular wages for those put on leave (furloughed), capped at £2,500 per month, with payments made via employers. The Self-Employment Income Support Scheme[2] offered 80% of the previous three years' average self-employment profits for three months, capped at £8,400, followed by 70% of profits for a further three months, capped at £6,570.[2][3]
MPs were considering the motion:
- That this House
- calls for the Government to abandon its one-size-fits-all withdrawal of the Coronavirus Job Retention and Self-Employment Income Support Schemes, and instead offer targeted income support to businesses and self-employed people in those sectors of the economy that have been hardest hit by the virus and are most in need of continuing assistance, and in those areas of the country which have been placed under local restrictions due to rising rates of infection.
The amendment supported by the majority of MPs in this vote was:
- to leave out from “House” to the end of the Question and add:
- welcomes the Government’s response to Covid-19 which has already protected the livelihoods of over 12 million people through the eight-month long Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme;
- acknowledges the support for hundreds of thousands of businesses up and down the country through unprecedented loan schemes, business grants and tax cuts;
- further welcomes the help to support, create, and protect jobs through measures such as the Eat Out to Help Out scheme, a temporary cut to VAT and stamp duty, increased incentives for apprenticeships, and the new Kickstart Scheme, as set out in the Government’s ‘Plan for Jobs’ policy paper published in July; and
- further acknowledges that any deviation from this Government’s proposed plan will cause damage to the United Kingdom economy.”
- [1] Coronavirus Job Retention Scheme, Gov.uk website.
- [2] Self-Employment Income Support Scheme, Gov.uk website
- [3] How HMRC works out trading profits and non-trading income for the Self-Employment Income Support Scheme, Gov.uk website
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