Sunak pledges billions in extra funds but Scots firms face uncertainty

Billions of pounds of extra funding have been pledged to help businesses survive the winter, but the Scottish Government warned that local firms are being “kept in the dark” about their future.

Amid fears over soaring unemployment and company closures, Chancellor Rishi Sunak moved to overhaul his previously proposed package of support, just a week before the end of the furlough scheme.

Business leaders and trade union chiefs welcomed many of the measures.

Howe ver, fears were raised that it could be “too little, too late” for some workers.

The SNP government in Holyrood said the lack of certainty for Scottish firms is “unacceptable and unsustainable”.

Mr Sunak said: “These changes mean that our support will reach many more people and protect many more jobs.”

Two of the three elements of the package will be UK-wide, including making the Job Support Scheme which replaces the current furlough system more generous.

Due to come into effect on November 1 it cuts the employer contribution to just 5%, and reduces the minimum hours requirement to 20%, so those working just one day a week will be eligible.

The announcement also increased self- employed grants, with the amount of profits covered increasing from 20% to 40%, meaning the maximum will rise from £1,875 to £3,750.

The third funding announcement, which does not apply directly to Scotland, will make grants of £ 2,100 available for firms in Tier 2 areas of England, primarily aimed at helping hospitality and leisure venues.

Mr Sunak has also not confirmed the level of any resulting funding increase for the Scottish Government, as a result of the rising spending on grants in England.

Changes mean that our support will reach many more people and protect many more jobs

Rishi Sunak overhauled his proposed support package.