London Daily

Focus on the big picture.
Saturday, Mar 21, 2026

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
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
×