London Daily

Focus on the big picture.
Saturday, Nov 22, 2025

UK chancellor performs U-turn on financial support package, stumping up more money for Covid-hit businesses

UK chancellor performs U-turn on financial support package, stumping up more money for Covid-hit businesses

The British chancellor has been forced to offer more financial support for individuals and businesses impacted by the government's Covid restrictions. The move comes after much criticism from UK industry and opposition parties.

On Thursday, Rishi Sunak, the UK chancellor of the exchequer, told parliament that he would be providing an improved support package for business and individuals who have seen their trade and livelihoods hit by Covid.

Thursday's announcement sees the government make changes to its winter support plan and the Job Support Scheme, which is due to replace the furlough scheme on November 1.

The original contents of the Job Support Scheme were deemed inadequate by many, particularly in areas with tier-two restrictions, like London, where businesses remain open but are impacted by lower demand. Businesses in regions with tier-three restrictions, such as Liverpool and Lancashire, already receive tailored support packages.

"I've always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today. These changes mean that our support will reach many more people and protect many more jobs," Sunak stated.

The move will see the government shoulder a greater burden for the UK's economic woes. In some cases, the taxpayer will go from funding 22 percent of claimants' wages, to just under half.

Business grants have been expanded to cover affected sectors in tier-two areas, whilst grants for the self-employed have doubled to 40 percent of previous earnings.

Sunak specifically focused on the hospitality sector, which has been hit hard by restrictions that stop households in tier-two areas from mixing. The chancellor announced cash grants of up to £2,100 ($2,750) per month which can be accessed retrospectively by pubs, bars, restaurants and other hospitality firms.

Many commentators took to Twitter to highlight how the government's U-turn appears to reflect the criticisms that were levied at the original scheme.
The government has been heavily criticized by unions, the opposition and businesses for the imposition of Covid restrictions without further help for afflicted businesses.


On Monday, restaurateurs protested in Westminster, demanding a review of the government's "arbitrary" Covid-19 restrictions and requesting more support for their ailing businesses.

Earlier in October, an events trade group wrote to Boris Johnson and Rishi Sunak, warning of the "existential threat" facing the events industry. The letter claimed that 90,000 redundancies would follow unless the industry receives tailored support.

Newsletter

Related Articles

0:00
0:00
Close
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
×