London Daily

Focus on the big picture.
Friday, Oct 09, 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
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
×