How can the Government’s business support packages help your business?
By Mr Bankruptcy
23rd March 2021
According to the Chancellor of the Exchequer, the aim of his 2021 budget was to ensure that it “meets the moment”. For the Government, this means a budget that supports jobs and businesses as the restrictions around the pandemic lift and we return to a more normal way of life.
Key budget announcements
The business support schemes which were announced are for a limited time only, so businesses should act quickly if they want to benefit from such schemes as:
- Extended Furlough Scheme: This has now been extended to 30 September 2021, with employers’ contributions towards this scheme set to change in July and August.
- Self-employment Income Support Scheme: A fifth grant will cover June, July and Augustand has now been extended to cover people who are newly self-employed, as long as they have submitted a 2019-20 tax return.
- Business rates holiday: Extended to the end of June 2021, after which business rates will be discounted.
- VAT cuts: The 5% level for hospitality and tourism will remain until September before increasing to 12.5% in October and then 20% in April 2022.
- Restart Grant: This £5 billion grant is to help the high street reopen after lockdown with gyms, cafes, shops, salons, restaurants, etc. all eligible to claim.
- Recovery Loan Scheme: Launching on 6 April, this will give businesses of any size access to loans and finance of up to £10 million per business to support recovery from the pandemic.
Business debt
The Government’s financial support for Covid-19 totals over £407 billion – an eye-watering amount. But the financial impact of the pandemic on businesses is no less staggering. It’s estimated that UK business debt comes to over £100 billion. This represents a potentially huge challenge for recovery and is highlighted in a newspaper report which suggests that British businesses have taken on debt worth more than twice the average growth that would have been expected since the crisis began.
Although understandable given the circumstance, this level of debt worries me and I’m not surprised by the predictions that up to 250,000 businesses may close over the next 12 months. Business owners and directors need a plan for managing and repaying debts and must ensure that if circumstances don’t improve as hoped, they act quickly and seek advice on managing their debts.
James Rosa Associates
James Rosa Associates is a firm of debt advisors and debt adjustors. With a supportive, non-judgemental and friendly approach, we offer a full range of advice and professional services to any individuals or business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:
- Insolvency support
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We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
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