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Financial support schemes for local businesses have been updated to protect jobs in the wake of the hospitality 'circuit breaker'.
The Co-Funded Payroll Scheme (CFPS) and the Visitor Accommodation Support Scheme have both been revised to provide more financial help, especially to the hospitality sector, while an additional scheme has been launched to support visitor attractions and events companies.
The announcement comes five days after the Chief Minister announced a hospitality circuit breaker which saw the closure of all hospitality and fitness venues.
Under the new measures, the co-funded payroll scheme has been upgraded with the maximum subsidy brought back to 80% as it was in the early stages of the pandemic.
Pictured: The level of support available depends on the business' financial detriment.
To qualify for the scheme, businesses must demonstrate a loss in income compared to the same period last year. The support is tailored to the business’s financial detriment.
As part of the revised scheme, businesses will not be required to remain open in order to claim a subsidy, although they are encouraged to continue to trade if they can do so safely within public health guidance.
The Government has warned that in the future, businesses that fail to follow public health guidance will be disqualified from claiming any support.
The revised scheme will apply to claims made for December and will open from 1 January.
The Visitor Accommodation Scheme (VASS) has also been amended to allow businesses to apply for support when they can demonstrate a 30% drop in turnover, rather than 50%.
The scheme will continue to provide support of up to 80% of designated fixed costs, paid monthly in arrears, but it has been adjusted to allow accrued costs to be included.
Pictured: Support has been announced for visitor attractions and events businesses.
An additional scheme will also be made available to visitor attractions and events businesses. Under the Attractions an Events and Support Scheme, qualifying businesses will be eligible for a subsidy that meets up to 80% of their designated fixed costs incurred over the winter period, from October 2020 to the end of April 2021.
The subsidy will be paid to applicants who can show a 50% reduction in turnover in the last year, when compared to the monthly average turnover in 2019.
Applications for the Attractions and Events Scheme will open this week and information on how to apply will be available on the Government of Jersey website.
“The improved terms, and amended schemes, that we are introducing today will allow us to continue to protect jobs and focus our support on the businesses that have been most impacted by the pandemic as we move through the winter months," the Minister for Economic Development, Senator Lyndon Farnham, said.
“The Co-Funded Payroll Scheme has already supported thousands of jobs and helped hundreds of businesses to stay solvent during the outbreak of covid-19 so it is important that the scheme remains flexible to ensure we continue to provide the appropriate levels of payroll support.
Pictured: Senator Lyndon Farnham, the Minister for Economic Development.
‘’I am also pleased to be able to announce the launch of the Attractions and Events Scheme which is aimed at supporting these important businesses to ensure that they can survive through the winter and are well placed to provide essential support the visitor economy as it recovers in 2021.
‘’We are currently working on further support for the hospitality, and health and fitness sectors, which remain closed.”
The Minister for Treasury and Resources, Deputy Susie Pinel, added: “The Government’s response to the pandemic has consistently been focused on lives and livelihoods. Although difficult, the public health measures announced this week are essential to keep Islanders safe.
"This enhanced support will help to safeguard the employment and livelihoods of the workers that are affected.”
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