COVID-19: Business support announced
The government has announced a new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, which will enable businesses to apply for a loan of up to £5 million, with the government covering up to 80% of any losses with no fees.
Businesses can access the first six months of that finance interest free, as government will cover the first 6 months of interest payments.
For businesses with fewer than 250 employees, the cost of providing 14 days of Statutory Sick Pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave.
A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
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There will be a £10,000 cash grant to the smallest businesses, delivered by local authorities. Small businesses that pay little or no business rates and are eligible for small business rate relief (SBBR) or rural rate relief will be contacted by their local authority – they do not need to apply. The funding will be provided to local authorities in early April. Guidance for local authorities on the scheme will be provided shortly.
The government is introducing a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.
A £25,000 grant will also be provided to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value between £15,000 and £51,000.
Shane Brennan, CEO, Cold Chain Federation called for this measure to be extended to firms further up the supply chain.
He said: “Yesterday the Chancellor announced an unprecedented amount of business rates relief for the retail, hospitality and catering trade. This is a vital and welcome move.
I have now written to the Chancellor calling for this rates relief to extend to the food storage and warehouse facilities that serve those businesses. A drop off in trade, as many serving catering businesses are already experiencing, is going to dramatically damage cash flow and taking on more debt is not going to be the answer for many businesses.”
