Support for Business
The Chancellor has set out a package of measures to support businesses during the disruption caused by COVID-19.
The package includes:
- A Coronavirus Job Retention Scheme
- Deferring VAT and Income Tax payments
- A Statutory Sick Pay relief package for SMEs
- A 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- The Bounce Back Loan Scheme to help small and medium sized businesses to borrow between £2,000 and £50,000
- The Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank. Further detail on how to apply can be found here.
- Coronavirus Large Business Interruption Loan Scheme (CLBILS) will provide a government guarantee of 80% to enable banks to make loans of up to £25 million to firms with an annual turnover of between £45 million and £500 million
- A new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
- The HMRC Time To Pay Scheme
The Bank of England has also cut the Bank Rate to 0.1%. It has taken further measures to help ensure that this rate reduction will translate through to the real economy and that capital will be available for new lending.
No business will be forced out of their premises if they miss a rent payment in the next three months. Further information about this can be found here.
Coronavirus (COVID-19) support is available to employers and the self-employed. You may be eligible for loans, tax relief and grants.
To see what support is available for you and your business click here.
The Government has provided financial support in the form of grant funding designed to help smaller businesses which is being administered through Local Authorities:
- West Suffolk Council: https://www.westsuffolk.gov.uk/coronavirus/covid-19-support-for-business.cfm
- Mid Suffolk District Council: https://www.midsuffolk.gov.uk/features/support-available-for-businesses-in-babergh-and-mid-suffolk/
- You can also look at Mid Anglia Growth Hub: https://www.newangliagrowthhub.co.uk/ and get telephone support from their advisors who have a huge amount of information and telephone support for businesses.
The guidance on support available for businesses published by the Department for Business, Energy and Industrial Strategy can be found here.
Further information for businesses can be found at:
- UK Finance
- HM Government Business Support
- Bank of England
- British Business Bank
- Suffolk Chamber of Commerce
Support for Self-employed
Millions of people across the UK could benefit from the coronavirus (COVID-19) Self-Employed Income Support Scheme.
Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.
The scheme has been designed after extensive engagement with stakeholders including the TUC, the Federation of Small Businesses and IPSE - The Association of Independent Professionals and the Self-Employed.
Guidance on the coronavirus (COVID-19) Self-employment Income Support Scheme from HMRC can be found here.