Take a look at guidance for UK businesses from the Department of Business, Energy and Industrial Strategy (BEIS) which sets out the details and eligibility criteria for two funding schemes:
(This was updated yesterday and applies only to England)
VAT Deferral
Last week the Chancellor of the Exchequer announced that there will be a deferral of VAT due to be paid between 20 March 2020 until 30 June 2020 (see link below).
This essentially means that businesses will automatically qualify to defer payment of the VAT due on their VAT returns for the VAT periods ending February, March or April 2020 until 31/3/2021, although VAT refunds and reclaims will be paid by HMRC as usual.
Norfolk Chambers is supporting the Norfolk business community – keeping you up to date and working hard to get further clarity on the various business support options. We will continue to listen to you and ensure that your voice is heard across both the region and nationally.
Last week was all about us ensuring that the government’s key messages and their rapidly evolving support schemes were clearly visible to the Norfolk business community. Our remit this week is to ensure that the support schemes available are operating in the way they are meant to and that the necessary support is getting through to those businesses who need it.
The impact of COVID-19 means that the current times are both challenging and unprecedented. Many businesses are having to operate in radically new ways, facing challenges that they just did not anticipate and many are also trying to make a huge difference in the fight against the virus.
We want to ensure that Norfolk Chambers supports the business community in the most effective and useful ways and have designed a brief poll to help us to understand how best to help. Make sure your voice is heard and listened to – take the poll now.
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As the Coronavirus continues to impact the day-to-day operations of businesses across our region, Norfolk Chambers stand ready to support you. Working with the British Chambers of Commerce, we need to hear from you about how your business is coping.
The results from last week’s Tracker have now been published, but given the rapid pace of developments, we now need to understand the immediate short terms impacts, as well as some of the more medium to long term impacts on your business. We are in constant contact with the UK Government and Bank of England as business support packages have been developed.
In this 2-3 minute poll: – Covid-19 Business Tracker – please tell us the immediate business conditions you are facing and whether your business is aware of or has used the recently announced support packages from government. Your input is essential to our work on behalf of your business. We intend to seek your views over the next few weeks to track progress. As a business leader, your views have never been more important.
Coronavirus Job Retention Scheme has been extended by one month to reflect continuing social distancing measures – a move that will allow firms from across UK to continue to protect millions of jobs
The government’s furlough scheme that is keeping millions of people in jobs will be extended for a further month, the Chancellor confirmed today.
Following on from yesterday’s announcement to keep the social distancing measures in place, Rishi Sunak said the Coronavirus Job Retention Scheme (CJRS) would now be open until the end of June – providing businesses with the certainty they need.
The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the 1 March to the end of May. However, the Chancellor said he would keep the scheme under review and extend it if necessary.
Chancellor of the Exchequer, Rishi Sunak, said:
“We’ve taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme. With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.
“It is vital for people’s livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.
The government has taken unprecedented action to help the economy and society bridge a period of national emergency so that as many people as possible can get back to work as the situation improves.”
Commenting on the announcement, Nova Fairbank, Head of Policy for Norfolk Chambers said:
“Norfolk businesses will be pleased that the Chancellor has responded to their calls for the Job Retention Scheme to be extended. This common sense move will provide many with the support they need to protect livelihoods as lockdown continues.
“With applications for the scheme opening on Monday, and April’s payday fast approaching, it is essential that payments are made as soon as possible. Any delay would exacerbate the cash crisis many firms are facing and could threaten jobs and businesses.”
The Chief Executive of Her Majesty’s Revenue and Customs, Jim Harra, has announced that the Coronavirus Job Retention Scheme (CJRS) for furloughed workers is due to open on 20th April 2020 for applications.
The CJRS was announced on 20th March 2020 and is due to back date payments to the beginning of March but has not yet opened for applications, despite the fact that many companies have been furloughing staff for weeks already.
Jim Harra told MPs on the House of Commons Treasury Select Committee that he was confident the scheme would be able to handle the anticipated surge in applications when it opens on 20th April 2020. Mr Harra also added that he expected the scheme to make ‘payments later this month, before the 30th April’.
Commenting on the announcement, Nova Fairbank, Head of Policy for Norfolk Chambers said:
“The Coronavirus Job Retention Scheme was welcomed by the Norfolk business community and will undoubtedly protect jobs, but we need HMRC to meet their commitment of making payments before the end of April . As our recent business poll identified, 77% of local firms said cash flow was their number one concern and many companies will not have the cash to pay staff for another month, without access to the Government’s furlough payments.”
Coronavirus continues to have a huge impact the day-to-day operations of businesses across our region. Norfolk Chambers stand ready to support you, but we need to understand what challenges you are facing and how well the government support initiatives are working. Working in partnership with the British Chambers of Commerce, we need to hear from you about how your business is coping. In this 2-3 minute poll: Covid-19 Business Tracker – please tell us the immediate business conditions you are facing and whether your business has recently used any of the support packages from government and what your experience was.
Your input is essential to our work on behalf of the overall Norfolk business community. As a business leader, your views have never been more important.
As part of Norfolk Chambers’ #NorfolkChamberHour at 11am on Tuesday 28 April, we are partnering up with New Anglia Local Enterprise Partnership to check in with your favourite local businesses and make sure they don’t miss out on grants available to them – that’s the message behind the Big Small Business Check-In #bigbizcheckin.
The initiative encourages everyone to check in with local small businesses, through their websites and social media accounts. It’s an opportunity to check that owners and staff are safe and well, to show loyalty and to make sure that the business is getting the support it needs.
Chris Starkie, Chief Executive of New Anglia LEP, said:
“This is a really challenging time for small businesses but there is help available – including grants for small businesses and hospitality, retail and leisure firms.
“Those are being paid out directly by local authorities, but we know that a number of companies have yet to come forward and claim. By checking in and making sure your favourite local businesses are aware of the help which is out there, you could be doing them a financial favour too.
“So think about your hairdresser, your favourite coffee shop or even your dog groomer or market trader – those sort of businesses could be eligible for grants. They are still eligible if they are currently closed due to Coronavirus restrictions so make sure they know what help is out there for them, and that you’re looking forward to visiting them again in the future.”
Make sure they have accessed free, impartial business support if they need it. They can speak to an adviser at the New Anglia Growth Hub for free on 0300 333 6536
Charities and organisations who have staff on the front-line help keep Norfolk communities safe can now access a new supply system should their PPE supplies run critically short.
Over the last few weeks Norfolk Resilience Forum (NRF) has been working hard to try and support the provision of PPE for those that need it to deliver key services.
Following a successful public campaign, which has already resulted in more than 180 companies coming forward to support the production of most types of PPE, a new process has been put in place to help front-line services source the equipment they need.
Currently there are times when demand is currently outstripping supply and the system will ensure that supplies of items which are in short supply are directed to those organisations with the most critical need. This will be in line with the current Government guidance. It will also help charities and other local organisations who deliver vital services to communities and meet specific criteria gain access to this equipment.
Trevor Holden, Chair of the NRF’s Tactical Coordination Group, said:
“This is a countywide operation involving all partners in the Local Resilience Forum. Partners in the Local Resilience Forum are all working together as the NRF to ensure every single citizen in Norfolk remains safe and critical needs are met.
“This is a tremendous amount of work and I pay tribute the officers and volunteers who are going above and beyond to ensure we deliver every day.”
If you have front-line staff and you require PPE, you should:
In the first instance you should seek to resolve your demand through your existing supply chain.
Where you are unable to meet your demand through existing supply chains, visit newanglia.co.uk/ppe-supplier-database and request login details for access to the database of local suppliers.
In the event that you are still unable to meet your requirements and you are directly involved in the support of critical services, please contact your local council.
Your local council will also be able to pass your request on to the Norfolk Resilience Forum for consideration for emergency provision, where this is available.
Following a sharp widening of the trade deficit in the third quarter (Q3) of 2016, an increase in exports of goods to non-EU countries saw the deficit on goods and services narrow to £8.6 billion in the fourth quarter (Q4) (October to December).
This is the main finding of the latest trade bulletin produced by the Office for National Statistics (ONS).
It shows that, while exports of goods to both EU and non-EU countries increased through most of 2016, there was a much higher quarter-on-quarter growth in exports to non-EU countries in Q4.
The British Chambers of Commerce (BCC) welcomed the signs of improvement with Director of Economics Mike Spicer describing the figures as an important reminder that UK companies take advantage of trading opportunities in every part of the world.
“This performance comes despite the mixed reaction of exporters to the depreciation in Sterling – which our research has found is hurting as many as it is helping,” he went on.
With Brexit continuing to dominate the headlines, Mr Spicer suggested that the continued weakness of the pound and the expected slowdown in economic growth is likely to dampen future demand for consumer imports.
More direct support from the Government, including more investment in trade show access, is needed “to keep UK businesses trading with the world”, he argued.
The BCC wants to see action in the Budget to reduce the upfront costs of doing business, particularly business rates in order that businesses have the resources to invest in people and product development.
“This is absolutely necessary to take full advantage of the growth opportunities in overseas markets,” Mr Spicer concluded.
Last week, Norfolk’s Resilience Forum launched an appeal for firms to help support the need for more Personal Protection Equipment (PPE). They have now passed 100 responses to the appeal. This is a tremendous show of support from the business community. Every offer, large or small, is needed and they would like to thank every one of those businesses.
The PPE appeal is still open, if you think you can help please go to: https://newanglia.co.uk/data-capture-for-ppe-supply-during-covid/ to pledge your support. The 100 pledges of support join an existing list of partners who got in touch directly – so there are no over 250 leads on the database.
New Anglia LEP are pulling together all the offers of support and is then sharing the information with local partners who procure their own supplies directly. The list includes:
Companies offering existing supplies
Companies who are in the PPE/medical equipment supply chain making us aware of deliveries, stock and provision
Companies who are already or who plan to change their production to make PPE (or parts for PPE)
The equipment that is needed is listed below – please register if you can help with any of these products:
The Bounce Back Loan scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The scheme will be delivered through a network of accredited lenders.
Eligibility:
You can apply for a loan if your business:
is based in the UK
has been negatively affected by coronavirus
was not an ‘undertaking in difficulty’ on 31 December 2019
Who cannot apply:
The following businesses are not eligible to apply:
banks, insurers and reinsurers (but not insurance brokers)
If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
Yesterday the UK announced the following sanctions against Russia:
Asset freeze on major Russian banks
Legislation banning Russian govt & companies from raising money in UK
More oligarchs sanctioned
Sanctions on major Russian companies including Rostech
Aeroflot ban
Ban on high tech exports to Russia
Limiting deposits Russians can hold in UK bank accounts
Bringing forward parts of economic crime bill
Hannah Essex, Co-Executive Director at the British Chambers of Commerce, said:
“With the dreadful news coming out of Ukraine today, all of us at the BCC hope there will soon be a peaceful resolution. Our thoughts are with all those affected in Ukraine and across our Global Network.
“The situation in Ukraine will be deeply worrying for many businesses in the region as well as here in the UK. International leaders must focus on seeking a swift resolution to end the invasion and return to peace.
“The British Chambers of Commerce will work closely with the UK government to ensure that businesses have all of the advice, information and support they need to make decisions, adapt to these circumstances and navigate the challenging times ahead.”
On the impact on trade and the economy, William Bain, Head of Trade Policy, said:
“Alongside the enormous human cost, the Russian invasion of Ukraine will create a significant shock to the world economy by weakening global demand, damaging international financial markets and adversely impacting the UK economy.
“The UK energy market has a lot less direct exposure to Russian gas supplies than most of Europe. But, as the global market is already tight, a scramble to source supplies will very likely result in further rises to prices in the UK.
“There is also a risk of further disruption to global supply chains, particularly those crossing through Russia and Ukraine, with closure of air space likely to have a significant impact on the movement of goods and people.
“The cumulative effect of all of this will likely be higher imported inflation and weakening trade flows.
“There could also be some supply chain disruption to manufacturers if some items cannot be exported in the event of hostilities and alternative supply sources cannot easily be obtained. This would inevitably further increase cost pressures and limit economic activity.”
UK-Ukraine Trade
Trade between the UK and Ukraine to the year-end of Q2 2021 was £1.6bn in total. Four fifths of this is in goods – with imports of iron and steel (about a quarter of all Ukrainian goods imports to the UK), cereals and grains (22%), vegetable oils and fats (15%), oil-seeds/oleaginous fruits (14%), and animal feed (3%).
Key U.K. exports to Russia are machinery, nuclear reactors, boilers ($743m in 2020), vehicles ($504m in 2020), pharmaceuticals ($293m), electrical & electronic equipment ($153m).