The States are weighing up whether - and, if so, when - to reintroduce financial support for businesses affected by the current surge in cases of covid-19.
Some business sectors - such as retail and hospitality - face an anxious start to the New Year.
The island's Medical Officer of Health, Dr Nicola Brink, has warned that it is not possible to prevent "a tidal wave of omicron" in the next few weeks.
By Christmas Eve, when figures were last released, there were more than 1,000 cases of covid-19 in the Bailiwick, around 600 of which were new infections in the four days before Christmas Day. Extensive mixing indoors over the holiday period provides ideal conditions for the virus to spread.
Although the island's vaccination programme is helping to limit the severity of illness, every infected person is legally required to isolate for seven days and observe special restrictions on movement for three days after isolation, including not going to restaurants, bars or clubs and shopping only for essential food, and therefore a further steep rise in cases over the next few weeks could have a major effect on many local businesses.
The Vice-President of the Policy & Resources Committee, Deputy Heidi Soulsby, said just before Christmas that the States are "considering" reintroducing financial support for businesses affected by the latest round of restrictions on movement.
Yes anecdotal but yes considering.
— Deputy Heidi Soulsby MBE (@HeidiSoulsby) December 22, 2021
Pictured: Deputy Heidi Soulsby indicated that business support packages could be on the table again in the near future.
In Jersey, the States have already announced the reintroduction of their Co-Funded Payroll Scheme (CFPS) for December and January. Businesses whose income has fallen by more than 20% this month compared to December 2019 will be able to claim financial support from the States of up to £1,250 per worker for the month. And they are extending their Fixed Cost Support Scheme into more sectors of business.
Jersey's Minister for Treasury and Resources, Deputy Susie Pinel, said: “We gave an assurance when we closed the last Co-Funded Payroll Scheme that we would look to reinstate it if circumstances changed. The omicron variant and public health guidance has meant that some businesses are seeing a downturn in trade and we see the reintroduction of the Co-Funded Payroll Scheme for a defined period as an insurance against the unknown factors and potential impact of omicron.”
At its peak, Jersey's Co-Funded Payroll Scheme supported more than 15,000 jobs and 3,500 businesses at a monthly cost to the States of £21 million.
In Guernsey, the annual Budget report, debated by the States in November, stated that business support cost the States £25million in 2021, including during the second covid-19 lockdown.
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