Fixed Cost Support Scheme: Expansion

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A decision made on 22 December 2021

Decision Reference: MD-E-2021-0048
Decision Summary Title	Expansion of Fixed Cost Support Scheme	Date of Decision Summary	21st December
Decision Summary author	Private Secretary EDTSC	Decision Summary: Public or exempt?	Public
Written Report title	Expansion of Fixed Cost Support Scheme	Date of Written Report	21st December
Written Report author	Director General Economy	Written Report: Public or exempt?	Exempt
Subject: Expansion of Fixed Cost Support Scheme
Decision: The Minister decided to expand the scope of the Fixed Cost Support Scheme, in line with this decision summary and the accompanying report, as a result of rising case rates, work from home guidance and uncertainty regarding the impact of the Omicron variant.
Reasons for Decision: In recent weeks public health messaging and guidance has substantially impacted on consumer confidence. These include guidance stressing the need to consider socialising carefully, take LFTs and wear masks which had a direct impact on hospitality and the events sector. The work from home and mandatory masks mandate from 4 January combined with announcements made regarding Omicron and the uncertainty of the impact of this variant has further impacted consumer confidence. Whilst it is difficult to project the full impact of the reintroduction of mandatory masks and strong work from home recommendation, logically retail, wholesale, and businesses such as cafes/coffee shops/sandwich shops will be affected; wider trading reliant on footfall in St Helier may also be impacted Initial guidance regarding the requirement for Omicron direct contacts to isolate for 10 days caused significant impact in seasonal trade for a variety of sectors, predominantly hospitality and events. Islanders maybe cautious whilst the full impact of Omicron is unknown, which is likely to have a sustained impact of already affected sectors. Businesses may also experience staff shortages if large numbers of people are required to self-isolate due to testing positive for Omicron. On 21 December Competent Authorities Ministers approved the expansion of the Fixed Cost Support Scheme to include the following sectors in the timeframes indicated: December 2021: Events and businesses reliant on events (already eligible) Travel and tour operators (already eligible) Hospitality Land transport January 2022: All sectors eligible in December 2021 Retail Wholesale Close contact services Health and Beauty All sectors will be eligible to claim at the 50% rate as they remain open and trading. The expansion will take effect from December (schemes open in mid-January for claims in arrears).
Resource Implications: This decision will require additional expenditure to support the expansion of claims to the Fixed Cost Support Scheme. This additional expenditure will be drawn from the Economic Recovery allocation 2021 (and for January 2022 from the Economic Recovery Allocation 2022) There are no staffing implications from this decision.
Action required: Officers to implement the expansion of the scheme.
Signature: Senator Lyndon Farnham		Position: Minister for Economic Development, Tourism, Sport and Culture
Date signed:		Date of Decision (If different)