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States specify businesses worst-hit by pandemic

States specify businesses worst-hit by pandemic

Monday 22 June 2020

States specify businesses worst-hit by pandemic


The States have revealed which industries will continue to receive financial support until the end of September, having been among the worst affected by the covid-19 lockdown.

The payroll co-funding scheme and other financial support measures will continue beyond June 30, the original expiry date, to support sectors that are expected to face significant ongoing pressures due to the pandemic.

The payroll co-funding scheme is being continued until at least the end of September for businesses that are still experiencing a significant downturn in the following sectors. They can continue to apply for either 80% or 100% of the minimum wage for employees depending on the extent to which the business is impacted.

The expectation is that businesses in sectors that are more reliant on tourist trade will be hardest hit and far more likely to require support over this extended period.

hotel

Pictured: P&R is still deciding how to best support hotels and their staff in the coming months.

These have been defined as: 

- Retail outlets

- Restaurants and other food and drink businesses (excluding takeaways)

- Event companies such as those working in corporate events or weddings -Travel agents & tour operators

- Arts, entertainment and recreation which act as tourist activities

Deputy Lyndon Trott, Vice-President of the Policy & Resources Committee, who leads on the financial support measures, said there are also businesses that "do not neatly fall within a particular sector" and that those businesses will be assessed on a case-by-case basis.

“The support we’ve been able to provide so far has gone a long way to keeping many businesses viable during this terrible time, and it’s very encouraging to see them beginning to trade again," he said. "Some are even reporting an exceptionally busy post- lockdown period. As we move to phase 5, we unlock even more of our domestic economy and expect even more businesses to see things pick up.

"But things aren’t quite as they were before the pandemic and we always expected to continue providing support to those businesses still materially impacted. What we’re doing now is taking a more targeted approach at where the support is really needed, particularly those businesses impacted by the continued lack of visitors.”

cruise_ship_cancelled.jpg

Pictured: The absence of any cruise ships this summer will hit a lot of retail and hospitality businesses that rely on visitor trade.

Deputy Trott said P&R "is looking in more detail" at how best to tailor support for hotels and other accommodation providers, in discussion with industry reps.

Accommodation providers are one part of the visitor economy that really is seeing a big impact, potentially having to miss out on virtually all visitors for most or all of their main season. Were working with that sector to make sure the right package of support is there for them.

Outside of these areas, other steps are being taken to support the business community. More time is being given for businesses to pay deferred TRP and the employer’s social security contribution.

And the States will waive, rather than defer, the rent owed by its commercial tenants who have not been able to open for business during lockdown.

Pictured top: Deputy Lyndon Trott.

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