In response to the lockdown caused by the pandemic, the co-funded payroll scheme was launched under which the government agreed to pay 80% of staff wages for businesses that had lost 30% or more of their revenue.
Phase two of the scheme, under which the bulk of claims have been made, was initially scheduled to last until the end of June but was extended to 31 August.
Government ministers have continually said that there will be no ‘cliff-edge’ for businesses where support is cut off suddenly and suggested that the scheme will be further extended, possibly through the winter months, for the worst-affected sectors, such as hospitality.
But now, Murray Norton, chief executive of the Jersey Chamber of Commerce, is calling for the government to make its plans clear, claiming further support will be ‘crucial’.
‘Chamber has been liaising with both ministers and government officers over further support and an extension of the co-funding payroll scheme,’ he said. ‘There is no doubt that further support will be crucial and it will be important to avoid any uncertainty and get the details of this soon, as businesses need to plan for the rest of the year.’
He added that he felt a review of the eligibility criteria was needed, with a view to including staff hired since the lockdown.
‘Co-funding came into place in March, and many businesses will have different employment numbers now compared to March, with some businesses only having skeleton staff in March, but then needing more staff as they have opened up,’ he said.
‘These staff are not within the original scheme, so it would be helpful to see some reassessment on the eligibility of who can be included.’
Economic Development Minister Lyndon Farnham was contacted for comment.
Figures published last week revealed that so far £52.2 million has been paid out for 8,780 claims made under phase two of the co-funded payroll scheme for the months of April, May and June.
A further £2 million was paid out under phase one, which expired on 10 May.
Around 55 loans, totalling just over £3 million, have been approved to firms under the business disruption loan guarantee scheme, which is underwritten by the government.
