How your independent shop will be affected by the budget
Posted on in Business News, Political News
The Chancellor presented his Budget to Parliament yesterday setting ou
t the Government's fiscal measures and response to Coronavirus (COVID-19).
This briefing outlines the most relevant Budget policies for independent shops. The full Budget documents are available here.
COVID-19 Business Support Package
"We will get through this together. The British people may be worried but they are not daunted"
The Chancellor set out a £12 billion package of ‘temporary, timely and targeted' measures in a three-point plan to support public services, individuals and businesses through the economic disruption caused by the coronavirus (COVID-19). The support package for business includes:
Statutory Sick Pay
The Government confirmed that Statutory Sick Pay (SSP) will now be available for people who are unable to work because they are self-isolating in line with government and medical advice.
The Government will bring forward legislation to allow small and medium-sized businesses and employers (with up to 250 employees) to reclaim up to 14 days of SSP paid for sickness absence due to COVID-19.
People who are advised to self-isolate for COVID-19 will soon be able to obtain a fit note by contact NHS 111 rather than visiting a doctor. This can be used by employees where their employers require evidence. Further details will be confirmed shortly.
Business Rates
The Government will extend the Retail Rate Relief scheme giving business 100% rates relief if they have a rateable value under £51,000 for 2020-21. Businesses that received the retail discount in 2019-20 will be rebilled by their local authority as soon as possible. If businesses have any enquiries about their eligibility, they should contact their local authority.
Small Business Grant Funding
The Government will provide a one-off grant of £3,000 to small businesses that already pay little or no business rates because of the Small Business Rate Relief (SBRR). This funding is to support small businesses help meet their ongoing business costs. This will provide £3,000 to around 700,000 business currently eligible for SBRR or Rural Rate Relief, to help meet their ongoing business costs. Businesses eligible for the newly expanded retail discount may need to apply to their local authority to receive the discount.
Coronavirus Business Interruption Loan Scheme
The Government will launch a new, temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, to support businesses to access bank lending and overdrafts. The Government will provide lenders with a guarantee of 80% on each loan (subject to a per lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The Government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £1.2 million in value.
HMRC Time to Pay
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC's Time To Pay service. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. Businesses can contact HMRC's new dedicated COVID-19 helpline from 11 March 2020 for advice and support.
For more information about any of the measures the Government has announced to support public services, people affected by COVID-19 and businesses experiencing increases in costs of financial disruptions, click here.
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