THE government has extended financial support to retailers and close-contact businesses, with the vast majority of these reporting a loss in turnover as a result of restrictions imposed in response to the Omicron variant.
A recent survey by the Jersey Chamber of Commerce said that 90% of respondents had a lower income this January than at the same time in 2019, while a quarter of respondents reported a drop of at least 50% compared to three years ago.
The survey was carried out in response to the government previously excluding retailers and close-contact businesses, such as beauty salons and hairdressers, from an extension to the Co-Funded Payroll Scheme, under which support is provided for struggling businesses.
Now the government has responded to concerned businesses and extended the scheme’s eligibility to more sectors, including wholesale and retail businesses, hairdressing, driving schools, sports and recreation, and childcare.
Treasury Minister Susie Pinel said the extension, which covers claims for January made in February, was likely to be the last and called the scheme the ‘most effective tool we have to respond to the impact that public health measures have had on businesses’.
Left-out businesses argued that the work-from-home guidance, which was lifted on Tuesday, had led to decreased footfall in town and that some customers were reluctant to shop while mask-wearing was being enforced.
The Co-Funded Payroll Scheme was previously extended to include restaurants, bars, coffee and sandwich shops, taxis, cinemas and the arts, and sole traders in all qualifying sectors.
Chamber chief executive Murray Norton said that the restrictions imposed in response to the Omicron surge in cases could not have come at a worse time for many businesses.
‘The government rightly followed health advice to recommend that wherever possible employees should work from home and businesses did follow this advice. That government intervention clearly reduced footfall to many businesses in retail and close-contact services, hampering their trading conditions at the worst of times.’
He called it ‘appropriate’ for the government to support the same sectors again.
Economic Development Minister Lyndon Farnham said he was ‘pleased’ they had been able to extend the scheme, following further engagement with the business community.
‘Providing support throughout the pandemic has been essential to retain businesses and protect jobs,’ he said.
