Guernsey's co-funded payroll scheme to end in September

Financial support for businesses under the scheme will end in September

Guernsey's co-funded payroll scheme will stop offering financial support to businesses at the end of September.

Since 1 April only businesses in the travel and tourism industry have been able to claim through the scheme.

The decision to end the support was based on an expected increase in travel activity, the States said.

The scheme paid 80% of Guernsey's £8.70 minimum wage to employees up to 42 hours a week.

Businesses were obliged to pay the remaining 20%.

The payroll scheme was reintroduced in January when Guernsey entered a second lockdown.

Since then, the island has moved to stage three of its exit plan, with all Covid restrictions lifted except for travel rules.

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Deputy Mark Helyar, Treasury lead for the Policy and Resources Committee, said: "The Payroll Co-Funding Scheme was never going to continue indefinitely.

"It was always the intention that this taxpayer-funded support would cease when trading conditions allowed businesses to operate at more reasonable levels, which is what we are starting to see."

He added the government would continue to monitor the situation and listen to industry feedback.

Jersey and the UK have already announced similar plans, with their payroll and furlough schemes coming to a close next month.

Guernsey's Policy and Resources committee confirmed the Visitor Accommodation Scheme and the Visitor Attraction Scheme would continue until the end of March next year.

Businesses which require support beyond September can also consider applying to the Business Disruption Loan Guarantee Scheme (BDLGS), the committee said.

The scheme helps businesses to borrow money when they do not meet the criteria set by banks.

The committee said it planned to publish a report detailing how much the payroll scheme had cost the taxpayer.

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