Guernsey's 'support recovery clause' for payroll co-funding will not apply in January and February

The business support measures were reintroduced as the island entered a second lockdown. Credit: ITV Channel TV

Businesses in Guernsey who apply for business support in the first two months of 2021 will not have to pay it back.

The Policy & Resources Committee have decided not to apply the support recovery clause to the payroll co-funding scheme for January and February, meaning that any support received will not have to be repaid - regardless of whether or not that business goes onto make a profit.

The committee says it is because the intention is for the current restrictions to be in place for a shorter period than the first lockdown.

Business support measures have been under review since they were reintroduced and politicians will review the support recovery clause towards the end of February.

The scheme has been criticised by some business owners after it emerged that details of how much they claimed could be made public by the States.