Responding to criticism, the Chancellor has announced a package to support the incomes of the self employed which he described as the most generous in the world.
They will pay an eighty per cent taxable grant on the profits based on the last three years accounts up to a maximum of £2,500 per month and with a cap on trading profits up to £50,000.
The measure brings the self-employed roughly in line with that which has been offered to workers who have been put into furlough by companies who have closed down.
To avoid fraud, it will only be open to people who are already self-employed and have a tax return from 2019.The scheme will run for three months and the Chancellor expected the first payments to be made in June.
He added that anyone who missed the deadline for their tax return will get an extra four weeks from today to submit.The Chancellor believes that this will cover ninety five per cent of the self employed population.
Responding to the announcement The Mayor of Greater Manchester Andy Burnham tweeted
“Once again, the Chancellor has shown his ability to listen. This move is welcome & will help millions. But initial feedback says June will be a stretch. Case for an up-front blanket £1k payment in April to tide people over? Just an idea. Could be deducted from the final figure.”
Greater Manchester’s Night Time Economy advisor Sacha Lord said
The financial measures provided for small businesses and employees were very welcome last week, as is the Income Support Scheme package announced this afternoon for the UK’s five million self-employed workers. Opening the disruption loan facility, and deferring the Self Assessment income tax payments will also undoubtedly help those who are struggling.
But we must remember that the UK’s contractors, freelancers and gig economy workers are the backbone of our labour market, and support many of our biggest sectors. I worry that many sectors will be unable to recover if these individual suppliers go under.
It’s a complicated package, and I agree with the £50k eligibility cap, but I am concerned that the financial aid may not reach those most impacted by this crisis quickly enough, and the outcome could be grave. I have spoken to countless employees and workers across Greater Manchester in the past weeks, many of whom are already struggling and are anxious about the crisis and how it will affect their daily lives.
