London Daily

Focus on the big picture.
Friday, Feb 20, 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
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
Pro-Palestine Activists Cleared of Burglary Charges Over Break-In at UK Israeli Arms Facility
Former Reform UK Councillors Form New Local Group Amid Party Fragmentation
Reform UK Pledges to Retain Britain’s Budget Watchdog as It Seeks Broader Economic Credibility
Miliband Defends UK-California Clean Energy Pact After Sharp Criticism by Trump
University of Kentucky to Host 2026 Summer Camps Fair Connecting Families with Local Programmes
UK Police Forces Assess Claims Jeffrey Epstein Used Stansted Airport Flights in Trafficking Network
UK-Focused Equity ETF FLGB Climbs to Fresh 52-Week Peak on Strong Market Sentiment
Trump Warns UK’s Chagos Islands Agreement Is a “Big Mistake” Amid Strategic Security Debate
Trump Urges UK to Retain Sovereignty Over Diego Garcia Amid Strategic Concerns
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
Rupert Lowe wanted to deport rape gangs and the communities who protected them
Reform UK Appoints Former Conservative Minister Robert Jenrick as Finance Chief
UK Unemployment Rises to Highest in Nearly Five Years as Labour Market Weakens
Rupert Lowe Advocates for English-Only Use in the UK
US Successfully Transports Small Nuclear Reactor from California to Utah
South Korea's traditional sand wrestling sport ssireum faces declining interest at home
Japan outlawed Islam
Virginia Giuffre accuses Epstein of trafficking to powerful men for blackmail.
New Mexico lawmakers initiate investigation into Zorro Ranch linked to Jeffrey Epstein
×