A 'WINTER economy plan' to protect the British economy throughout the next six months has been announced by the Chancellor of the Exchequer.

Rishi Sunak laid out his plans for how the Government would help businesses and workers through the winter today at noon.

  • First among the new measures is the Job Support Scheme.

Under this, employers will pay a third of their workers' wages, with staff adjusting their hours as a result.

But the government will then top-up another third of the wages so employees still earn most of their original wage.

The chancellor said this measure would help to protect jobs which were sustainable in the long term.

The scheme is open to all employers across the UK, including those who did not claim money through the  furlough scheme.

  • Secondly, Mr Sunak annouced an extension to loans to help businesses.

Two loan schemes called the Bounce Back Loan, and the Covid Business Interruption Loan will have their payback deadlines extended from six years to 10 years.

The chancellor said this would mean smaller monthly payments for businesses.

  • Thirdly, the chancellor announced new 'targert' help for tourism and hospitality businesses

A VAT rate of 5 per cent for these businesses will be extended until March 31 next year.

This cheaper cost could encourage customers to spend more due to lower prices.