Guernsey’s Policy & Resources Committee has agreed to continue the payroll co-funding scheme for those sectors currently eligible, until the end of March 2021.
Earlier in the year, it had been expected that changes to travel restrictions that formed part of the move to phase 5c may see an increase in travel activity. However the high prevalence rates of COVID-19 in other jurisdictions means this has not been the case and the Bailiwick continues to see very little travel and this has informed the decision to extend the scheme.
While it is unlikely, should the situation improve very quickly and more travel does resume in the short-term, the Policy & Resources Committee may review again if the support for businesses should continue. If it becomes the case that the support is no longer needed, the Committee will give businesses advance warning so they can plan accordingly.
The existing rules for qualifying for either 80% or 100% of the minimum wage for employees will continue to apply and the full details can be found here.
The following sectors continue to be eligible and claims will only be considered from businesses whose last claim was eligible in the October –December period:
- Travel agents and tour operators
- Event companies such as those working in corporate events or weddings
- Taxi Operators, subject to a cap of 80% payroll support*
- Exceptions considered for businesses heavily impacted by travel restrictions
Deputy Mark Helyar, who leads on financial support measures for the Policy & Resources Committee said: “The second wave that the UK and other jurisdictions are facing means we’re not seeing any increase in travel and businesses which rely on visitors are still struggling. The new Policy & Resources Committee has made an early decision to continue this support to give some clarity and assurance to those businesses for the coming months.
“Having moved into phase 5c, our rules for the borders are now designed so that travel to the Island is less restrictive for those coming from low-risk jurisdictions and that means we can expect to see more travel once the situation improves elsewhere, but for right now our neighbours and many countries globally are going through a difficult period and that inevitably impacts on some of our business sectors”.
*Taxi Operators continue to be impacted by low volumes of off-island travel. However, given that there are reasonable levels of demand locally which should be sufficient to enable operators to achieve the minimum turnover threshold of 40%, assistance will be capped at 80% payroll support from December onwards.
