Chamber News

The Corporate Insolvency and Governance Bill is set for House of Commons passage this week and is expected to proceed to the House of Lords on Tuesday 9 June.  Factsheets have been produced to explain different aspects of the Bill covering:

• Overview of the Corporate Insolvency and Governance Bill                                                           
• Summary of Retrospective Provisions
• Financial Services Exclusions
• Moratoriums
• Restructuring
• Statutory Demands and Winding Up Petitions
• Wrongful Trading
• Termination Clauses
• Annual General Meeting
• Filings
• Delegated and Henry VIII powers

Great Yarmouth Borough Council is inviting applications for grants from small businesses impacted by Covid-19, which were not eligible for the Government’s previous grants scheme or other support.

The council has already handed out more than £28m in Government grants to local businesses under the national scheme. Additional Government funding of just over £1.7m is now allowing the council to support even more local businesses during these challenging times.

Using national guidelines, local authorities were asked to develop their own policies and criteria on administration of this additional funding. Eligible businesses can apply for grants of either £2,000, £5,000 or £10,000, with one grant award per business.

Those that will be prioritised for the scheme are small businesses in shared offices and regular market traders who do not have their own business rates assessments, bed and breakfasts which pay Council Tax instead of business rate and charity properties that are in receipt of charitable business rates relief.

Businesses must have been trading on 11 March 2020 to be eligible for this scheme and must be able to provide evidence of a significant fall in income resulting from Covid-19. The scheme is aimed at businesses that have ongoing fixed property overheads. Companies that are in administration, considered bankrupt or where a striking-off notice has been made will not eligible for this funding.  

Cllr Carl Smith and Cllr Trevor Wainwright, leaders of the council’s main political groups, said: “The council has already handed out more than £28m to local businesses under the national scheme and we’re now pleased to be able to offer support to even more small local businesses.  

“We’ve designed the local scheme criteria to help as many small businesses as possible among those which were not eligible for the previous Government support, and we encourage those businesses to submit their applications swiftly via the website.

“Council staff will be working quickly to get as many grants paid out to those eligible as soon as possible.”

For full details on how to apply click here.

On 1 May 2020 the government announced it was allowing local authorities to develop policies to pay discretionary grants to local businesses affected by COVID-19.

Initial guidance was issued by central government on 13 May 2020, version 2 was published late on 22 May 2020 and a set of Frequently Asked Questions was published on 27 May 2020. Whilst local authorities are able to decide their own policies, government has asked that four specific types of businesses are prioritised for the grant, and has specified three mandatory criteria all applicants must meet in order to receive the grant.

As funding is limited this policy is restricted to those businesses the government has specified are a priority plus businesses the council consider to be local priorities. Full details of eligible businesses and the eligibility criteria are below.

Eligiblity:

Government’s mandatory criteria:

Any business or trader wishing to claim the grant must first meet the government’s mandatory criteria:

1.     They are not eligible to claim a grant (regardless of whether they have actually claimed a grant) under:

a.     The Small Business Grant Fund

b.     The Retail, Hospitality and Leisure Grant Fund,

c.     The Fisheries Response Fund,

d.     The Domestic Seafood Supply Scheme,

e.     The Zoos Support Fund, and/or

f.      The Dairy Hardship Fund

2.     They were trading on 11 March 2020 from the premises they are claiming the grant for, and

3.     They were not in administration, insolvent or subject to a striking off notice either on, or since, 11 March 2020.

Additional eligibility criteria:

In addition to the mandatory criteria, any business or trader wishing to claim the grant must also pass the council’s initial eligibility checks:

4.     They are operating or trading within the boundaries of the Borough Council’s area,

5.     They have fixed, ongoing, property related costs,

6.     They can demonstrate they have suffered a significant fall in income due to the COVID-19 crisis which has impacted their business, and

7.     They are not a Precepting Authority of any local authority

Any business or trader failing to meet the criteria above is not eligible to claim a Discretionary Grant.  Only one grant is payable per business / trader under this policy.

For full information and how to apply click here.

In April the government announced additional funding for local authorities to use for discretionary business grants.  They have now provided sufficient detail for the local authorities to start opening up for grant applications.  Below are the Norfolk local authority funding applications that are live now.

North Norfolk District Council

https://www.north-norfolk.gov.uk/tasks/economic-growth/north-norfolk-district-council-s-discretionary-grant-scheme/

The North Norfolk Discretionary Grant Scheme is intended to support certain small businesses previously outside the scope of the earlier business grant funds scheme. The scheme is aligned with Government guidance which has stipulated a number of key conditions and sector priorities.

The Government have advised that grants should be primarily and predominantly aimed at:

• Small and micro businesses
• Businesses with relatively high ongoing fixed property-related costs
• Businesses which can demonstrate that they have suffered a significant fall in income due to the COVID-19 crisis

The Government have further stipulated that grant funding is for businesses that are not eligible for other support schemes. Businesses which are eligible for cash grants from any central government COVID-related scheme are ineligible for funding from the Discretionary Grants Fund. Such grant schemes include but are not limited to:

• Small Business Grant Fund
• Retail, Hospitality and Leisure Grant
• The Fisheries Response Fund
• Domestic Seafood Supply Scheme (DSSS)
• The Zoos Support Fund
• The Dairy Hardship Fund

The following business types are eligible to apply for this scheme:

• Small businesses in shared offices or other flexible workspaces. Examples could include mills, units in industrial parks, science parks and incubators which do not have their own business rates assessment;
• Regular market traders with fixed building costs, such as pitch fees or storage costs, who do not have their own business rates assessment;
• Bed & Breakfasts which pay Council Tax instead of business rates; and
• Charity properties in receipt of charitable business rates relief which would otherwise have been eligible for Small Business Rates Relief or Rural Rate Relief.
• Businesses which are wholly involved in the hospitality, leisure and events industry but do not have a business premises open to visiting members of the public.
• Public Houses with a rateable value of £51,000 or higher
• Hotels with a rateable value of £51,000 or higher
• Day Nursery Premises

Businesses who do not fall within these categories will not be able to apply for this grant.

Please see the Grant Guidance web page or downloadable PDF for the full details of the grant scheme. Please read this in full before completing an application.

You will need to provide a number of supporting documents with your application. These documents are listed within the Grant Guidance. Please have these documents to hand before you commence the application form as you will require this information.

Breckland Council

https://www.breckland.gov.uk/discretionary-grant

Breckland Council has secured additional funding of almost £1.5m from the Government, to help us address the needs of businesses which were not eligible under the original COVID-19 grant schemes. The original schemes are still in operation and cover businesses in receipt of Small Business Rate Relief and businesses eligible for Expanded Retail and Hospitality Relief (further details are available on our website.)

They want to make sure every penny of this is directed to businesses in greatest need, and as quickly as possible. However, they are aware the scale of demand may well outstrip the limited funds they have available.

Breckland will consider making grant awards to individual businesses under two separate award categories;

Category A: Government-Priority-Listed Businesses:

Specifically Bed and Breakfasts; Regular Market Traders; and businesses in shared spaces / flexible work spaces. Where a business can confirm their specific eligibility, they will make awards between £2,000 – £10,000 (depending upon the size of the business and the hardship experienced due to Coivd-19-imposed trading conditions). These awards will be made on a ‘first-come-first-served’ basis. They anticipate starting to make payments from around the 5th June, or as soon as they are able to start confirming eligibility from applicants.

Category B: Small Businesses and Charities who have suffered significant hardship due to Covid-19 and are important to the local economy / local recovery.

They have deliberately set only limited minimum criteria for this category, based on government guidelines. This includes: businesses must be ‘small’; have business premises in Breckland; must have been trading on 11th March; and cannot be eligible for other Covid financial support. They will use the information supplied in the application to make a relative assessment of the hardship experienced, and the impact on the Breckland economy.  They will then make grant awards of up-to £10,000 to as many of those in greatest need as possible, using whatever monies are left over after paying out the Government-priority-listed awards (category A).

In order to run the above programme, Breckland Council are limiting the window for grant applications from the 1st June to 23rd June (close of business).  They will make their assessments using the above guidelines, and continually review as they progress.

Important Information – Please read before progressing

The Council will not accept deliberate manipulation and fraud. Any business caught falsifying their records to gain additional grant money will face prosecution and any funding issued will be subject to clawback.

Under the two categories set out above they will make specific eligibility / hardship checks, and require you to provide evidence to enable these.

However, all businesses must also meet the minimum eligibility criteria, by demonstrating all of the below:

• Occupying a business property, or part of a business property, within Breckland
• Having suffered a significant fall in income due to the Covid-19 crisis
• Are ‘small’ including employing fewer than 50 employees
• Were trading on the 11th March 2020 (and are not in administration, insolvent or where a striking-off notice has been made)
• Not being eligible for other for cash grants from any central government COVID-related scheme (apart from Self-Employed Income support scheme)

Unfortunately Breckland Council will not be able to provide grants beyond the total value made available to them by the Government (£1,433,750). This means they may have to end their application window early, if all of their available funds are committed through Government-Priority-Listed Businesses.

Breckland Council will have incredibly limited scope to consider ‘appeals’, likely only in areas of extreme manifest error, and the onus will be on applicants to ensure accuracy of information (they will not, for example, be in a position to query typos and form errors which may lead to ineligibility).

The application form will require you to upload documents to help evidence key criteria. You can save the form as you go along, but they recommend you assemble your key evidence before proceeding.

Apply Now

So far just North Norfolk and Breckland Council have gone live with their discretionary grant applications.  Norfolk Chambers will update our website as soon as we hear from more Norfolk local authorities. We are aware that King’s Lynn & West Norfolk Borough Council and Norwich City are also looking to open their schemes very shortly.

Responding to government confirmation of a 14-day quarantine for all air passengers and further detail on exemptions for those arriving in the UK, BCC Director General Adam Marshall said: 

 “Business communities in the UK and around the world remain concerned by the Government’s decision to impose a blanket quarantine on international arrivals.  

 “The safe re-establishment of connections to key markets and trade partners must now be a top priority for the Government. ‘Air bridges’ must be put in place swiftly for the sake of the many industries and livelihoods that depend on the UK’s connectivity across the world. Any review process should consult widely with affected business communities all across the UK. 

 “Co-ordinated checks at departure and arrival airports, together with other internationally-agreed safety measures, would alleviate the need for a blanket quarantine affecting arrivals from every country around the world.” 

With many businesses beginning the gradual transition back to working in offices, the government have outlined further details on the extension of the Coronavirus Job Retention Scheme.

The new announcements include improved flexibility to bring furloughed employees back part-time, and a new taper requiring employers to contribute modestly to furlough salaries from August.

From 01 July 2020, businesses will be given the flexibility to bring furloughed employees back part-time. This is a month earlier than previously announced to help support people coming back to work. Individual firms will decide the hours and shift patterns their employees will work on their return so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.

The scheme updates mean that the following will apply for the period people are furloughed:

• June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
• August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

More information.

As we all continue to use Zoom for online calls and webinars, we need to be increasingly vigilant to avoid security breaches or ‘Zoombombing’, which has increased across the UK and globally.

Our Head of Customer Experience, Philippa Bindley has been looking at how to ensure Norfolk Chambers and our members stay safe on the Chambers virtual events and webinars.  She said:  “The majority of us now consider ourselves to be somewhat Zoom aficionados, however there are some great top tips that will help reduce the possibility of being ‘Zoombombed’ and make it a safer environment in which to hold your meetings and webinars”

Here are Philippa’s top tips:

• Turn off the function that allows guests to change their name themselves.
• Don’t allow participants to share their screen. If you have an external speaker who needs to, make them a co-host during their presentation and then revert back to a participant.
• You may also want to disable virtual backgrounds for participants as this could be used for sharing inappropriate images.
• Have a team member co-host the call with you for support and to help keep an eye on things.
• Make sure you know who is joining your call, in advance and check anyone you are unsure of.
• Approve registrations before sending the log on details and password to participants.
• Close registration 1 hour in advance so that people can’t continue to register at the last minute.
• Once everyone is on the call, lock the room. You should notify approved participants that this will happen 5 minutes after the call starts.”

For more detailed information on how to implement the above, see the best practice security guide from Zoom.

The UK Government, in consultation with industry, has produced guidance to help ensure workplaces in England are as safe as possible during the coronavirus pandemic. Join a free webinar, hosted by the Department of Business, Energy and Industrial Strategy, to find out more about how to make your workplace COVID-secure.

The webinars cover a range of different types of workplace settings which are allowed to be open. Many businesses operate more than one type of workplace, such as an office, factory and fleet of vehicles. You may need to use more than one of the guides/webinars as you think through what you need to do to keep people safe.

Construction and other outdoor work – Guidance for people who run outdoor working environments / Monday 01 June, 11am – Book now

Labs and research facilities – Guidance for people who run indoor labs and research facilities and similar environments / Monday 01 June, 3pm – Book now

Offices and contact centres – Guidance for people who run offices, contact centres and similar indoor environments / Tursday 02 June, 11am – Book now

Homes – Guidance for people working in, visiting or delivering to home environments as well as their employers / Tuesday 02 June, 3pm – Book now

The Chancellor, Rishi Sunak, has announced that the government will be extending the Self-Employment Income Support Scheme.  Those eligible under the Self-Employment Income Support Scheme (SEISS), which has so far seen 2.3 million claims will be able to claim a second and final grant in August. The grant will be 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.

Mr Sunak also set out more details on how the Coronavirus Job Retention Scheme (CJRS) will continue to support jobs and business as people return to work, following the announcement of an extension of the scheme on 12 May.  So far, the CJRS has helped 1 million employers across the UK furlough 8.4 million jobs, protecting people’s livelihoods.

From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. This is a month earlier than previously announced to help support people back to work.

Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the Government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.

The scheme updates mean that the following will apply for the period people are furloughed:

• June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
• August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• September: The government will pay 70% of wages up to a cap of £2,190. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
• October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

Commenting on the Chancellor’s announcement, Nova Fairbank, Head of Policy for Norfolk Chambers said:

“The Chancellor has listened to business communities and struck a careful balance that will help many firms bring furloughed staff back to work flexibly over the coming months.

“The gradual reduction in furlough contributions from the Treasury will give businesses additional time to rebuild their income streams and cash flows, and the decision to give businesses maximum flexibility to bring people back part-time will be appreciated.”

“The furlough scheme has helped companies preserve millions of jobs through lockdown, but many firms still face significant uncertainty ahead. On that basis, closing the scheme to new applicants in June feels premature, and risks undermining some of the work already done to preserve businesses and jobs.

“Over the coming months, government will need to be open to providing new and additional support for businesses and staff who are unable to get back to work for an extended period, especially in sectors of the economy facing reduced capacity or demand due to ongoing restrictions.”

On extended support for the self-employed:

“The extension of support for the self-employed will come as welcome relief for those who have seen their livelihoods impacted by the virus. It is right that this group continues to receive similar levels of support to those on PAYE.”

The new NHS Test and Trace service has launched today across England.  Take a look at the NHS test and trace workplace guidance and the Q&A for external stakeholders.

• NHS Test and Trace service to form a central part of the government’s coronavirus recovery strategy
• Anyone with symptoms will be tested and their close contacts will be traced
• New guidance means those who have been in close contact with someone who tests positive must isolate for 14 days, even if they have no symptoms, to avoid unknowingly spreading the virus

The service is designed to help identify, contain and control coronavirus, reduce the spread of the virus and save lives. 

From today, anyone who tests positive for coronavirus will be contacted by NHS Test and Trace and will need to share information about their recent interactions. This could include household members, people with whom they have been in direct contact, or within 2 metres for more than 15 minutes. 

People identified as having been in close contact with someone who has a positive test must stay at home for 14 days, even if they do not have symptoms, to stop unknowingly spreading the virus. 

If those in isolation develop symptoms, they can book a test at nhs.uk/coronavirus or by calling 119. If they test positive, they must continue to stay at home for 7 days or until their symptoms have passed. If they test negative, they must complete the 14-day isolation period. 

Members of their household will not have to stay at home unless the person identified becomes symptomatic, at which point they must also self-isolate for 14 days to avoid unknowingly spreading the virus. 

Health and Social Care Secretary Matt Hancock said:

“As we move to the next stage of our fight against coronavirus, we will be able to replace national lockdowns with individual isolation and, if necessary, local action where there are outbreaks.

“NHS Test and Trace will be vital to stopping the spread of the virus. It is how we will be able to protect our friends and family from infection, and protect our NHS. 

“This new system will help us keep this virus under control while carefully and safely lifting the lockdown nationally.”

NHS Test and Trace brings together four tools to control the virus.

• Test: increasing availability and speed of testing will underpin NHS Test and Trace.

• Trace: when someone tests positive for coronavirus the NHS Test and Trace service will use dedicated contact tracing staff, online services and local public health experts to identify any close recent contacts they’ve had and alert those most at risk of having the virus who need to self-isolate. This will be complemented by the rollout of the NHS Covid-19 App in the coming weeks.
• Contain: A national Joint Biosecurity Centre will work with local authorities and public health teams in PHE, including local Directors of Public Health, to identify localised outbreaks and support effective local responses, including plans to quickly deploy testing facilities to particular locations. Local authorities have been supported by £300m of new funding to help local authorities develop their own local outbreak control plans. 
• Enable: Government to learn more about the virus, including as the science develops, to explore how we could go further in easing infection control measures.

The NHS Test and Trace service, including 25,000 dedicated contact tracing staff working with Public Health England, will have the capacity to trace the contacts of 10,000 people who test positive for coronavirus per day and can be scaled up if needed.

The rollout of the NHS Test and Trace service has been made possible by the rapid expansion of testing. The largest network of diagnostic testing facilities in British history has been created and will soon have the capacity to carry out 200,000 tests a day. This includes 50 drive-through sites, more than 100 mobile testing units and 3 mega laboratories. 

People who are contacted by the NHS Test and Trace service will be given clear information explaining what they must do and how they can access local support if needed. Guidance is also available online at gov.uk/coronavirus. This comes as the Department for Work and Pensions has announced that those having to self-isolate will be eligible for statutory sick pay if they are unable to work from home. This applies across the four nations of the UK. 

Commenting on the announcement of the government’s Test and Trace Coronavirus programme, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“‘A comprehensive Test and Trace programme is essential to boosting the confidence of businesses, staff and consumers as the economic re-start continues.  Businesses will be keen to play their part in the success of the programme, and will support their staff to follow the guidance.”

Employers across the UK with fewer than 250 employees can now claim for Coronavirus-related Statutory Sick Pay (SSP). Tax agents are also able to make claims on their behalf.

The repayment will cover up to two weeks of the applicable rate of SSP. See more information on eligibility and how to make a claim.

Who can use the scheme

You can use the scheme as an employer if:

• you’re claiming for an employee who’s eligible for sick pay due to coronavirus
• you have a PAYE payroll scheme that was created and started on or before 28 February 2020
• you had fewer than 250 employees on 28 February 2020 across all your PAYE payroll schemes

Employees do not have to give you a doctor’s fit note for you to make a claim. But you can ask them to give you either:

• an isolation note from NHS 111 – if they are self-isolating and cannot work because of coronavirus (COVID-19)
• the NHS or GP letter telling them to stay at home for at least 12 weeks because they’re at high risk of severe illness from coronavirus
• The scheme covers all types of employment contracts, including:
• full-time employees
• part-time employees
• employees on agency contracts
• employees on flexible or zero-hour contracts
• fixed term contracts (until the date their contract ends)

Responding to the planned government announcement of a 14-day quarantine for all air passengers arriving in the UK, British Chambers of Commerce Director General, Adam Marshall said:

“Business communities in the UK and around the world will be deeply concerned by the decision to impose a blanket quarantine for international arrivals.

“This approach will damage international business and investor confidence at a time when it is vital to demonstrate that the UK can open for business safely. Co-ordinated checks at departure and arrival airports, and strong safety measures would alleviate the need for a wholesale quarantine.

“Businesses will look to the Government to set out a clear plan for the safe re-establishment of air connections to key markets and trade partners around the world. Any review process should consult widely with business communities.”