12 March 2020
In yesterday’s budget, specific support was announced for SMEs. Details of the announcements are below.
Business Support announced in the Budget
In the Budget the Chancellor announced a package of measures to provide support for public services, individuals and businesses affected by COVID-19.
To ensure the impact on businesses is minimised, in today’s Budget the Chancellor outlined a comprehensive package of support.
A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses with a turnover of no more than £41m to apply for a loan of up to £1.2m, with the Government covering up to 80% of any losses with no fees. This will unlock up to £1 billion pounds to protect and support small businesses.
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 £2bn 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 to 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.
There will be a £3,000 cash grant to 700,000 of our smallest businesses, delivered by Local Authorities, and worth a total of £2bn.
Finally, the Government is temporarily increasing the Business Rates retail discount in England to 100% for 2020-21 for properties below £51,000 rateable value. Nearly half of all business properties will not pay a penny of business rates.
Bank of England measures to respond to the economic shock from Covid-19
The Bank of England have also announced a comprehensive package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with COVID-19. Interest rates have been reduced from 0.75% to 0.25% and additional funding will be available for banks to increase lending, especially to SMEs.
Online resources for businesses and employers
For the latest information and advice, employers and business owners should visit guidance for employers and businesses. Check the page regularly for updates and subscribe to receive email alerts.
Government is also advising businesses to build their own resilience by reviewing their business continuity, developing an understanding on the potential impacts to their supply chains, customers or other factors critical to their operations.
Public Health Advice – Business Continuity
The Government currently advises businesses to continue to operate as usual.
This is a rapidly evolving situation, which we are monitoring carefully. The situation is kept under constant review and any change in guidance will be based on scientific evidence. The Governments approach is clinically led, based on the expert advice of the UK’s Chief Medical Officer for England, the NHS and Public Health England. Businesses should check for daily updates at GOV.UK and subscribe to receive email alerts to ensure they are acting on the most up to date information.