Covid: Guernsey business grants up to £2,000 if lockdown extended

The payroll co-funding scheme will be expanded from 1 March if restrictions remain in place

Guernsey businesses will be eligible for grants of up to £2,000 if Covid-19 restrictions extend beyond 15 February.

The bailiwick declared a lockdown last Saturday after four coronavirus cases of unknown origin were detected.

Businesses will be able to claim the maximum amount if they operate from commercial premises, with the support grant falling to £1,000 if they do not.

They are lower than last year as it is hoped the current lockdown will be shorter, the States of Guernsey said.

Active Covid-19 cases in Guernsey had risen to 186 by Saturday.

The lower grants offered to some businesses is to reflect the added cost of commercial premises.

Receiving the £2,000 is subject to businesses having monthly overhead commitments of more than £500, as well as other qualifying criteria to be confirmed later, the States said.

'Reassurance to businesses'

On top of the grants, if restrictions are still in place on 1 March an expansion of the payroll co-funding scheme will be made available, with the States offering to pay 100% of minimum wage to some businesses, sole traders and self-employed islanders.

The current support, which involves paying 80% of the £8.70 per hour wage with the business required to top up the rest, opens for applications on Monday.

Some businesses reacted with anger at a new clause in the reintroduced scheme, allowing the States to recoup support from profitable businesses.

The States amended their proposal to allow the self-employed and sole traders to keep £50,000 as "personal expenses".

Deputy Mark Helyar, from the Policy and Resources Committee, said they had "moved quickly to provide reassurance to businesses" over the availability of financial support.

"Although these latest measures refer to upcoming changes, we wanted to get the message out as soon as possible to allow time for businesses to plan ahead," he said.

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