Fewer Guernsey businesses eligible for financial support in stage two of lockdown exit
Fewer businesses will be eligible for financial support in stage two of Guernsey's lockdown exit, but they will not be obliged to pay back the funding they receive.
The Policy & Resources Committee is removing the 'support recovery clause' from its support measures for the next stage, meaning businesses will not have to pay back the payroll co-funding support even if they turn a profit.
The clause has not been applied in the first two months of the island's second lockdown, which is expected to be shorter than the first in the spring of 2020.
However, the Committee says it is vital that support is only provided to businesses to the extent that it is 'genuinely needed'.
Sectors who will be eligible for payroll co-funding in stage two will include close-contact services such as hairdressers and beauty salons, most non-essential retail and hospitality venues like bars, restaurants and nightclubs.
Under the payroll co-funding plans, businesses who are operating at 40% or less of their usual turnover will be able to have 100% of the minimum wage for the staff covered by the government for March. Eligible businesses operating at 70% or less will still be able to claim up to 80% of the minimum wage for their staff.
Hotels and other visitor accommodation will be eligible for support through a separate scheme which has been extended until March 2022.
The Committee says the amount of taxpayer-funded financial support needed for businesses will reduce in stage two of the island's lockdown exit strategy, as more businesses will be able to operate at close to normal levels - though social distancing measures will remain in place.
Deputy Helyar says the policy will remain under review and said business representatives should engage with the Committee if they feel further support is needed in particular sectors of the economy.