Commenting on extended support to prevent business evictions until the end of 2020, announced by the government today, BCC Co-Executive Director Claire Walker said:
“Both tenants and landlords will welcome the government’s flexible and pragmatic approach which may protect firms from eviction who are struggling with their cashflow.
“Today’s announcement will provide much-needed breathing space and give businesses a chance to plan and successfully rebuild their operations.”
In a letter to the Prime Minister, BCC President Baroness Ruby McGregor-Smith has said businesses face “the most difficult trading conditions in post-war history” and set out a series of measures to help government take a “sharper approach” to restarting the UK economy.
The letter reads: “Prime Minister, a successful restart of the economy demands bolder and more ambitious action. We face a difficult winter ahead – even without a significant resurgence of the virus itself. If the Government wishes to avoid mass unemployment, significant levels of business failure, and long-term economic scarring in our communities, we urge you and your colleagues to act now.”
The letter sets out a series of proposals which could help offset the worst of the damage to businesses and livelihoods and begin a return to prosperity.
Comprehensive support through local restrictions
The letter notes that local restrictions are a “single largest blockage” to restarting operations, with BCC research suggesting more than half of businesses (52%) see it as a key barrier. Baroness McGregor-Smith calls for “support for businesses shuttered by local restrictions” – in the form of additional grant funding and wage support, not saddling firms with further debt.
Following local restrictions in Leicester, Aberdeen, Greater Manchester and Lancashire and cases rising across the UK, Baroness McGregor Smith added: “Government should take every step possible to avoid damaging local and catastrophic national lockdowns and instead place the highest possible premium on alternative measures that maintain the economy and keep businesses open, such as rapid improvements to test and trace systems.”
“Businesses are not ready to face the triple threat of further lockdowns, an end to government support schemes and the end of the Brexit transition period.”
She continued: “Government must develop a confidence plan for businesses where it is clear what type of measures are expected for each change in scenario. This will allow business to plan.”
Ambitious fiscal stimulus
The letter notes that “far more ambitious” fiscal stimulus will be needed to deliver a full restart of the UK economy. It reads: “The path to October and beyond appears very challenging, as the Job Retention Scheme, CBILS and BBILS schemes close, creating a perfect storm for otherwise viable businesses.”
Baroness McGregor-Smith sets out a comprehensive stimulus package, including a reduction in the overall cost burden on firms to protect businesses and preserve as many jobs as possible. An 18-month expansion of the Employment Allowance from £4,000 to £20,000 and an increase to the threshold for National Insurance contributions from £8,788 to £12,500 would help businesses with prolonged cashflow difficulties. The latter could save businesses around £500 per job.
Restoring business and consumer confidence
Baroness McGregor-Smith calls on the government to immediately improve its Test and Trace programme so that it is “quickly available to all who need it, results are returned quickly, and positive results tracked.” Only then would businesses and consumers have the confidence “that the disease can be properly managed without further crippling lockdowns.”
Commenting on the ONS labour market figures for September 2020, published today, BCC Head of Economics Suren Thiru said:
“Despite the slight rise in the unemployment rate, the furlough scheme continues to limit the pandemic’s full impact on headline job figures.
However, the decline in employees on payrolls and the rise in the claimant count in August as the furlough scheme began to taper is a clear warning that the full impact of Coronavirus on the UK labour market is yet to come.
“While there was a rise in the number of job vacancies, this is more likely to reflect a temporary bounce as the economy gradually opened, rather than a meaningful upturn in demand for labour. With many firms are still facing waves of cash flow problems, rising costs and an uncertain economic outlook, it is probable that unemployment will escalate sharply as government support winds down.
“To help avoid a damaging cliff edge for jobs more must be done help firms keep staff on through this deeply challenging period. This should include a significant cut in employer National Insurance Contributions and more substantial support for firms placed under local lockdowns.”
“Businesses will warmly welcome this milestone free trade deal with Japan, which provides access to a major market for traders across the UK.
“Chambers of Commerce stand ready to work with government to ensure that the benefits of this agreement are felt by businesses on the ground. Firms will want to see the specific provisions to support small businesses replicated in future trade deals to help business communities thrive and grow in future.
“Whilst this agreement is undoubtedly cause for celebration, securing a Free Trade Agreement with the EU remains critical to the future of businesses in the UK. We urge Ministers to redouble their efforts to reach a comprehensive partnership with our largest trading partner at a crucial time in the negotiations.”
Commenting on GDP figures for July 2020 published today by the ONS, BCC Head of Economics Suren Thiru said:
“The latest data confirms that UK economic activity continued to pick-up in July as lockdown restrictions eased further.
“The UK economy is currently in a period of temporary calm, with activity buoyed by the government’s emergency support measures and the unwinding of pent-up customer demand as more parts of the economy reopened.
“However, with many firms continuing to face an unprecedented cash crisis and unemployment likely to surge as the support schemes wind down, there remains little prospect of a sustained resurgence unless substantial action is taken.
“To protect jobs and livelihoods, the government should consider extending and adapting the Coronavirus Business Interruption Loan Scheme to ensure businesses are supported sustainably over a longer period, as well as introducing a more significant package of support for firms placed under local restrictions.”
Responding to the announcement that firms in England forced to close due to local Coronavirus restrictions will be able to claim grants of up to £1,500 every three weeks, BCC Director General Adam Marshall said:
“Businesses forced to close through no fault of their own will welcome any new grant support, but for most this will not be enough to offset the resulting cash crunch.
“With new local restrictions becoming more frequent, a comprehensive package of support will be needed for affected firms. More than half of Chamber members see local lockdowns as a major barrier to maintaining day-to-day operations and more than 1 in 3 have three months or less worth of cash in reserve.
“Ministers should increase the amount on offer to ensure businesses and jobs are protected, and extend coverage to more firms that are hard-hit but not forced to close.”
Last week, the Government announced its Kickstart Scheme, a £2 billion fund to create hundreds of thousands of high quality six-month work placements aimed at those aged between 16 to 24, who are on Universal Credit and are deemed to be at risk of long term unemployment.
The funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
The Kickstart Scheme job placements must be:
6 months
at least 25 hours per week
paying at least the National Minimum Wage through PAYE
paying the statutory employer duties for the health, safety and welfare for young people, National Insurance and pension contributions
including support for young people to help them get work after they finish their Kickstart Scheme job
Larger organisations, that can offer a minimum of 30 new placements, are being asked to apply directly to the scheme. More information is available here.
However, for those firms who are unable to offer such a large number placements, the Government is looking to work with intermediaries, such as Chambers of Commerce, to coordinate funding bids.
Commenting on the new scheme, Nova Fairbank, Head of Policy for Norfolk Chambers said:
“Norfolk Chambers and the UK Chamber network have been working with the British Chambers of Commerce Taskforce and the DWP to develop the Kickstart scheme.
“We therefore welcome the intention of the scheme, but are looking at the detail to ensure that it will indeed create the long-term, quality employment opportunities needed, by ensuring that both businesses and employees are fully supported throughout the placement.
“Norfolk Chambers are happy to support local businesses to access the Kickstart Scheme and we are in dialogue with various partners to explore ways of collaborating our efforts to make the application and delivery processes as easy as possible for businesses.”
If your business is interested in creating a fully funded placement for a young person, please contact: [email protected] and advise how many placements you are thinking of creating.
Commenting on the government’s announcement that people on low incomes in Coronavirus hotspots in England will be able to claim up to £182 if they have to self-isolate, BCC Director General Adam Marshall said:
“We’ve called for additional income support for those required to self-isolate for some time. Businesses will want this trial to be expanded quickly across England and throughout the UK, increasing the rate of pay if necessary, to ensure compliance with the requirement to self-isolate and in turn reduce the spread of the virus.
“Ministers must also act to support the many businesses that, through no fault of their own, have been force to close or seen substantial loss of income due to localised lockdowns or restrictions.”
The UK Government has recently published a new Border Operating Model that will change the way in which goods are imported to and exported from the UK from 1st January 2021.
At present businesses have free movement of their goods into/out of Europe, however on 01 January 2021, you will need to produce international trade documentation for all your products both imported and exported to/from the EU. The upshot is that there will be a significant increase in costs for all businesses to process their goods into and out of the UK. The British Chambers Trade Facilitation Director recently wrote an article that highlighted that changes coming: https://www.norfolkchamber.co.uk/news/brexit/no-more-transition-uk-border
To ensure that your business is ready to meet the new import/export regulations on 01 January 2021, you need to have considered the following ten key areas:
Who is currently moving your freight and who do you currently use to process your customs declarations?
Who’s currently holding the liability for your declarations? (direct/indirect representation)
You may already be using a freight forwarder and they will be able to offer you advice and support, alternatively Norfolk Chambers have the expertise to handle your customs declarations and stand ready to help support you in navigating the coming changes, please do ask us for more information.
Do you have an international team? What is the level of expertise in that team?
When did you last review or check your commodity/tariff codes?
Norfolk Chambers are running several international trade training courses that will help you and your team to understand and prepare for 01 January 2021: https://www.norfolkchamber.co.uk/training.
We have also teamed up with the British Chambers to deliver a series of Global Webinars that will also provide insight and knowledge into future international trade. The first two are scheduled for September:
You will also need to ensure that you are fully aware of all your commodity/tariff codes relevant for all your products. Again, you may be using a freight forwarder and we would recommend that you discuss the above with them on an urgent basis. Alternatively, we would be very happy to help you.
What is the likely volume of your imports/exports from the EU?
Which ports/airports do you use?
Do you have your own deferment account with HMRC?
Are your imported goods liable for excise duty?
Do your import/export goods require licences, health certificates or dangerous goods notifications?
You will need to declare all goods that you import/export to the EU. You will also need to arrange clearance of those goods for each port/airport. You may have freight forwarders in each location that can do this for you, alternatively, Norfolk Chambers can clear your goods at any port/airport in the UK on your behalf. We also have the ability make arrangements for you to use our deferment account if that is required.
Norfolk Chambers have the international trade expertise to ensure that you and your business are fully prepared and we are here to help you to navigate through the new regulations to make your Brexit transition as smooth as possible.
To talk to our specialist team and to find out more please contact [email protected] or call 01603 729706.
If you’re a customs agent or your company uses agents and intermediaries to trade with the EU you need to understand how to meet customs requirements fast and efficiently after the end of the transition period.
HMRC has made record funding of £50 million available to enhance its Customs Grant Scheme. From 29 July 2020, organisations can apply for funding to reimburse a number of costs associated with increasing their capacity and enhancing their ability to complete customs declarations, ahead of the new rules from January 2021.
Businesses can apply for funding for recruitment, employee training and IT, in preparation for additional customs declarations. Eligible organisations include traders and customs intermediaries (such as customs brokers, fast parcel operators and freight forwarders) who make or intend to make customs declarations for their own goods or on behalf of others. Organisations which recruit, train and place apprentices into customs intermediaries or other organisations which undertake customs declarations activity are also eligible to apply.
All eligible organisations which are currently and have been based in, or with a branch in, the UK for at least a year can apply for all elements of the grant.
This funding can be used for the following courses:
The Chambers Quarterly Economic Survey (QES), the UK’s largest independent business survey, is open today (Monday 24 August 2020) for three weeks.
With the UK officially in a recession and the impact from the phasing out of the furlough scheme starting to be felt, it is therefore more important than ever that both the Chancellor and the Bank of England hear from businesses just like yours.
How has your business performed in the last quarter, what do you see as the challenges and opportunities going forwards? How confident are you about your financial position, your workforce and your future orderbook?
Without this vital local and regional knowledge they cannot make the right decisions and put relevant support mechanisms in place that will ultimately impact on you and your company.
The QES is anonymous, open to anyone and only takes a couple of minutes to complete online.
We need your input, if you only take one survey, then please make it the QES
Join us as we launch our brand-new international trade country focus programme, in September 2020.
This exciting new programme brings together industry figures, government representatives and BCC partners from across the world. It will provide businesses with all the insights, advice and answers they need to fully understand the implications of trading with major international markets that have been identified as priority trading partners for the UK.
Each month will consist of two parts:
Part 1 – Global Leader Insights: a strategic overview
This will be a strategic discussion about current/future trade relations with a senior government representative from the market being featured, moderated by Dr Adam Marshall, BCC Director General.
Part 2 – Global Panel Insights: a deeper dive
A more in-depth discussion with leading local experts to allow participants to:
Explore markets and key sector opportunities to help businesses grow internationally;
Access information, advice and answers to perceived barriers for exploring or growing in markets around the world.
Together these two parts will give businesses a thorough understanding of the implications and benefits of trading in major overseas markets.
The programme schedule is as follows:
September: USA month
October: Australia month
November: Japan / Northern Asia month (Japan, China, Hong Kong)
December: UAE month
Please see links below for the September, USA month, virtual events: