CHANCELLOR Rishi Sunak has announced a raft of new measures hoped to protect the country from mass unemployment after the furlough scheme winds up. 

But what exactly has he announced, and how will it affect Scottish workers and businesses? 

Wage top-up

While the furlough scheme is still ending, a replacement Job Support Scheme will be introduced instead, intent on keeping people's jobs safe while reducing the wage bill for companies

Employees could have their hours reduced by as much as two thirds, receiving just a third of their normal wages from their employer.

The Government will then pay an additional third, meaning the employee will keep their job while working reduced hours.

For example, an employee who earns £1000 per month, and has their hours reduced by 50% would be paid £500 from their employer for the work they do.

They would receive a further £125 from the employer, and £125 for the government. The scheme is designed to ensure people receive at least 77% of their wages if they are only working reduced hours. 

However the payments from the government will be capped at £697.92 per month per employee, provided they are working at least a third of their normal hours.

The scheme is open to any business, regardless of whether they used the previous furlough scheme or not.


The self-employed income support scheme (SEISS) is being extended.

Those currently eligible for the SEISS, and who are continuing to trade but are facing declining profits due to the pandemic, will be given a lup-sum grant payment.

The payment, covering Novemeber-January, will be the equivalent of 20% of their average monthly profits, capped at £1,875.

There are also plans for a second grant, to cover the period from February -April, depending on the economic climate come 2021.

Hospitality and Tourism

These industries are thought to be the worst affected by the crisis due to the constant restrictions on gatherings, opening hours and changign guidelines.

As a result, the government has agreed to keep the tax cut implemented earlier this year until March 2021. Businesses in this sector will only pay 5% VAT, instead of the previous 20%. They will also be able to use the wage top-ups, and government-backed business loans for extra support.

Extra time for tax bills

Businesses which deferred paying their tax bill will have more time to pay, with the New Repayment Scheme. Rtasher than having to pay their full tax bill at the end of March, up to half a million companies will get the option to pay it back in 11 smaller interest free installments between April 1 2021 and March 31 2022. 

People who use self-assessment to pay taxes will be able to use the Time to Pay scheme. Tax payments deferred from July 2020, and payments due in January 2021, will now be due in January 2022 instead. It is thought around 11 million people in the UK will be elgible for this. 

Business loans and repayments

Firms that have not yet applied for a government-backed loan will now have until November to apply for one. They will be able to apply for Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme or the Future Fund until November 30. 

Businesses that took out a Bounce Back loan will have more options for repayment, over a longer period of time, under what the government has dubbed the 'Pay as You Grow' scheme. 

The length of the loan term can be extended from six years to 10, and a six month interest-only period will also be available to reduce the amount firms have to start paying back initially. Repayment holidays will also be offered. 

For those who took out a Coronavirus Business Interruption Loan, they will also be given an extended period of up to 10 years to repay.