Chamber News

The Chancellor, Rishi Sunak has today announced the extension of the Coronavirus Jobs Retention Scheme until the end of October 2020.

The scheme has supported over 7.5 million furloughed workers across the UK.  Mr Sunak advised that up to the end of July the scheme remains unchanged.  And from August through to October he will look to add greater flexibility into the scheme, allowing furloughed workers to return part time.  Similarly he will look to share the cost burden between the government and the employers. He will announce more detail on the changes to the scheme later in May.

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

“The extension of the Job Retention Scheme will come as a huge help and a big relief for businesses across our region.

“The Chancellor has clearly listened to what businesses have been saying, and the changes planned will help them bring their people back to work through the introduction of a part-time furlough scheme.  The Chambers network will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely and look forward to seeing the further details shortly.

“British Chambers research shows that the scheme has become a key part of wider government support for businesses, with more than 70% of firms surveyed across the UK furloughing a portion of their staff.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

Yesterday, the UK government published their Coronavirus recovery strategy. This document describes the progress the UK has made to date in tackling the Coronavirus outbreak and sets out the government’s plans for the next phases of its response. The government has also updated its guidance for businesses on working safely during Coronavirus.

The UK Government timetable has published a three-step plan for lifting restrictions. If the Government sees a rise in the infection rate, they may seek to re-impose restrictions in some form.  A link to the full document can be found here.

Timescales

Step One – Wednesday 13 May

Step Two – No earlier than Monday 1 June

Step Three – No earlier than 4 July

Commenting on the publication of the UK Government’s COVID-19 recovery plan and associated workplace guidance, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:

“This is a significant step forward in terms of the information available for businesses, who will now need to digest the detail. The guidance signals big changes for the way that many businesses operate, and some firms will now need time to plan and speak to their employees so that they can return to work safely.

“Alongside this guidance, businesses urgently need clarity on the future of government support schemes, which must be adapted to help those firms who need to remain closed for an extended period or face reduced capacity or demand.”

Step One (Comes into effect on Wednesday 13 May2020):

1. Work

• For the foreseeable future, workers should continue to work from home rather than their normal physical workplace, wherever possible. 
• People who are able to work at home make it possible for people who have to attend workplaces in person to do so while minimising the risk of overcrowding on transport and in public places.
• All workers who cannot work from home should travel to work if their workplace is open. Sectors of the economy that are allowed to be open should be open, for example this includes food production, construction, manufacturing, logistics, distribution and scientific research in laboratories. Workplaces that the government is requiring to remain closed include:
  • restaurants and cafes, other than for takeaway
  • pubs, cinemas, theatres and nightclubs
  • clothing and electronics stores; hair, beauty and nail salons; and outdoor and indoor markets (not selling food)
  • libraries, community centres, and youth centres indoor and outdoor leisure facilities such as bowling alleys, gyms, arcades and soft play facilities
  • some communal places within parks, such as playgrounds and outdoor gyms places of worship (except for funerals)
  • hotels, hostels, bed and breakfasts, campsites, caravan parks, and boarding houses for commercial/leisure use, excluding use by those who live in them permanently, those who are unable to return home and critical workers where they need to for work
• Food retailers and food markets, hardware stores, garden centres (from Wednesday 13 May) and certain other retailers can remain open. Other businesses can remain open and their employees can travel to work, where they cannot work from home.
• The Government is amending its guidance to clarify that paid childcare, can take place subject to being able to meet the public health principles.
• Workplaces should follow the new “COVID-19 Secure” guidelines, as set out in the previous chapter, which will be published this week 

2. Face coverings

• Government is now advising that people should aim to wear a face-covering in enclosed spaces where social distancing is not always possible and they come into contact with others that they do not normally meet, for example on public transport or in some shops.
• Homemade cloth face-coverings can help reduce the risk of transmission in some circumstances. Face-coverings should not be used by children under the age of two, or those who may find it difficult to manage them correctly, for example primary age children unassisted, or those with respiratory conditions.

3. International travel

• All international arrivals will be required to supply their contact and accommodation information. They will also be strongly advised to download and use the NHS contact tracing app.
• All international arrivals not on a short list of exemptions to self-isolate in their accommodation for fourteen days on arrival into the UK.
• Small exemptions to these measures will be in place to provide for continued security of supply into the UK. All journeys within the Common Travel Area (between UK and Ireland) will also be exempt from these measures.
• These international travel measures will not come into force on 13 May but will be introduced as soon as possible. Further details, and guidance, will be set out shortly, and the measures and list of exemptions will be kept under regular review.

4. Business support

• As the UK adjusts the current restrictions, the Government will also need to wind down the economic support measures while people are eased back to work
• The Government will also need to ensure the UK’s supply chains are resilient, ensuring the UK has sufficient access to the essential medicines, PPE, testing equipment, vaccines and treatments it needs, even during times of global shortage.(Will come into effect no earlier than Monday 1 June 2020)

Step Two (Will come into effect no earlier than Monday 1 June 2020)

• A phased return for early years settings and schools. The Government expects children to be able to return to early years settings, and for Reception, Year 1 and Year 6 to be back in school in smaller sizes, from this point. Secondary schools and further education colleges should also prepare to begin some face to face contact with Year 10 and 12 pupils.
• Opening non-essential retail. Further guidance on the approach expected shortly on the approach taken to phasing, including which businesses will be covered in each phase and timeframes involved. All other sectors that are currently closed, including hospitality and personal care, are not able to re-open at this point because of the higher risk of transmission.
• Re-opening more local public transport in urban areas, subject to strict measures.

Step Three (Will come into effect no earlier than 4 Jul 2020)

• Open at least some of the remaining businesses and premises that have been required to close, including personal care (such as hairdressers and beauty salons), hospitality (such as food service providers, pubs and accommodation), public places (such as places of worship) and leisure facilities (like cinemas).These businesses must meet the COVID-19 Secure guidelines
• Some venues which are, by design, crowded and where it may prove difficult to enact distancing may still not be able to re-open safely at this point, or may be able to open safely only in part. Nevertheless the Government will wish to open as many businesses and public places as the data and information at the time allows.
• In order to facilitate the fastest possible re-opening of these types of higher-risk businesses and public places, the Government will carefully phase and pilot re-openings to test their ability to adopt the new COVID-19Secure guidelines.

Guidance for specific types of work. 

The government have produced eight guides to cover a range of different types of work. The guidance also includes links to other materials-such as risk assessments and a COVID secure declaration that you may wish to display in your workplace. You may need to use more than one of these guides as you think through what you need to do to keep people safe:

• Construction and other outdoor work: for people who work in or run outdoor working environments.
• Factories, plants and warehouses: for people who work in or run factories, plants and warehouses.
• Homes: for people working in, visiting or delivering to home environments as well as their employers.
• Labs and research facilities: for people who work in or run indoor labs and research facilities and similar environments.
• Offices and contact centres: for people who work in or run offices, contact centres and similar indoor environments.
• Restaurants offering takeaway or delivery: for people who work in or run restaurants offering takeaway or delivery services.
• Shops and branches: for people who work in or run shops, branches, stores or similar environments.
• Vehicles: for people who work in or from vehicles, including couriers, mobile workers, lorry drivers, on-site transit and work vehicles, field forces and similar

Commenting on the Prime Minister’s address on Sunday evening, in which he set out a conditional plan for the next phase of the response to Covid-19, Nova Fairbank, Head of Policy for Norfolk Chambers said:

“Norfolk businesses share the Prime Minister’s ambition to see more people return safely to work over the coming weeks.

“Companies will do everything they can to protect employees and customers, maintain social distancing and operate successfully as more sections of the economy are permitted to re-open.

“Our business community will need to see detailed plans for the phased easing of restrictions and supported by clear guidance. It is imperative that companies have detailed advice on what will need to change in the workplace, including clarity on the use of PPE.

“Firms will also need to know that government support schemes, which have helped save millions of jobs in recent weeks, will continue for as long as they are needed so that they can plan ahead with confidence.

“The timing of further easing of restrictions must be guided by the public health evidence, but businesses need their practical questions answered so they can plan to restart, rebuild and renew.”

Commenting on the latest UK Finance figures (7 May) on the number of firms successfully accessing CBILS, the BCC’s Head of Economics Suren Thiru said:

“Although the steady improvement in the number of firms accessing CBILS is welcome, with many firms only having a few months’ cash in reserve the pace of delivery remains disappointingly slow.

“The strong start made by the Bounce Back loan scheme is encouraging for the smallest businesses that are struggling to stay afloat. However, more needs to be done to ensure that all businesses get access to the finance they need.

“The current template for Bounce Back loans could be used the improve the provision of the CBIL scheme, including adopting an easier and more consistent application process. 

“Government must also be ready to further expand the existing grant schemes to ensure that as many businesses as possible get access to the support they need.” 

Results from the latest BCC Coronavirus Business Impact Tracker reveal the vast majority of firms surveyed say they will require three weeks or less to prepare to restart operations alongside any loosening of the UK lockdown. Smaller businesses may be able to restart operations more quickly. Almost two-thirds (64 per cent) of respondents employing fewer than 10 people say they would need less than one week, compared to half (50 per cent) of respondents with more than 50 employees. For firms of all sizes: • 25 per cent said they would not need any notice • 35 per cent said they would need less than a week’s notice • 29 per cent said they would need one to three weeks’ notice • 7 per cent said they would need three to six weeks’ notice • 3 per cent said they would need more than 3 weeks’ notice By sector Over two-thirds (68 per cent) of business-to-business service firms said that they would need less than one week or no notice to restart operations, compared to 50 per cent of business-to-consumer service firms. The leading business organisation’s weekly tracker poll, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 540 responses. The sixth tranche of polling was conducted April 29 – May 1. The Tracker will continue to monitor business attitudes toward the restart of the economy – and the gradual release of the UK lockdown – over the coming weeks. Businesses furloughing employees  The number of firms accessing the government’s Job Retention Scheme remains consistent with previous weeks, with around 74 per cent of respondents furloughing a portion of their staff. The scheme remains a crucial support for businesses to preserve jobs and livelihoods. Encouragingly, since the scheme’s online application portal opened on 20 April, the vast majority of respondents (59 per cent) have submitted a claim and received payment from HMRC. This week’s results do not report any firms being rejected.  At the time of fieldwork: • 12 per cent of firms submitted a claim more than six working days ago and said they were yet to receive payment • 17 per cent of firms submitted a claim less than six working days ago and said they were yet to receive payment • 11 per cent have not yet made a claim, but plan to Commenting on the results, BCC Director General Dr Adam Marshall said:  “Over the coming days, business communities will require clear forward guidance from government on plans to re-open parts of the economy, transport networks, schools and local services. “Our results show that businesses’ ability to restart quickly varies by company size, and by sector. “For these reasons and more, it will be crucial for the government to maintain and evolve support for businesses, to give as many firms as possible the chance to navigate a phased return to work. “While the fight against Coronavirus must remain the top priority, the communication of plans for the easing of restrictions must also begin immediately. The Chamber Network will continue to work constructively with governments across the UK to plan a coherent path forward.”

Thank you to everyone who took part in last week’s British Chambers Business Tracker.  Over 700 businesses across the UK, including those from Norfolk responded – making this the largest independent business survey on Covid-19 economic impacts.  The results will be published tomorrow.

The businesses responses are helping to fill a significant gap in understanding immediate economic conditions. And both the Government and the Bank of England and the Small Business Commissioner have all been briefed on the results.

This week’s data collection is now underway – please do take part and help us to understand the impact on the economy both locally, regionally and nationally.

Take part now.

What is it?

The Bounce Back Loans scheme will offer loans from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower. The Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. The government has then set the interest rate for this facility at 2.5% per annum for subsequent years. No repayments will be due during the first 12 months. Length of the loan is for six years. There will be a short, standardised online application to apply for a loan. The scheme is now open for applications and firms will be able to access these loans through a network of accredited lenders.

Am I eligible?

Your business must be able to self‑declare to the lender that it:

• has been impacted by the Coronavirus pandemic.
• was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules).
• is engaged in trading or commercial activity in the UK and was established by 1 March 2020.
• is not currently using a government-backed Coronavirus loan scheme, unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility.
• is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance.
• derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges).

Bounce Back Loans are available to businesses in all sectors, except the following:

• Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)
• Insurance companies
• Public-sector organisations
• State-funded primary and secondary schools

The borrower remains fully liable for the debt.

What do I need to do to access it?

You will need to fill in a short application form online, which self-certifies that your business is eligible for a loan under BBLS. If your business is eligible, it will be subject to appropriate customer fraud, Anti-Money Laundering and Know Your Customer checks. Some state aid restrictions may apply to your application.

• A guide how to apply can be found here.
• An FAQ on BBLS can be found here.

Who do I need to speak to?

You should speak to your business banking provider or one of the accredited lenders. With high demand for BBLS facilities, finance providers recommend that you approach a lender via their website. Phone lines are likely to be busy and branches may not be able to handle enquiries in person.

HM Revenue and Customs (HMRC) has updated their guidance on the SEISS:

• HMRC is now contacting people who may be eligible for the SEISS
• The claims service will open on 13 May
• Applications will open in tranches based on the UTR number
• Those eligible will have the money paid into their bank account by 25 May, or within six working days of completing a claim.

People who may now go online and check their eligibility for SEISS.

The coronavirus pandemic has been a seismic shock to the Norfolk economy. It is an unprecedented situation in both scale and impact. What we now understand is that we will not be going back to “business as usual” any time soon. There will be a ‘new normal’ and as a business community we must find ways to adapt and thrive in a very different economic landscape.

Norfolk Chambers would like to understand what challenges your business has faced and is still facing as a result of the impact of Covid-19.  We want to ensure that we support the business community in the most effective and useful ways and have designed the Norfolk’s Business Pulse to help us to understand how best to help. 

Ensure your voice is heard and listened to by helping us to take the Business Pulse – take part now.

Commenting on the news that the UK and US are to open formal negotiations on a future free trade agreement, BCC Director General Adam Marshall, said:

“While most UK businesses will be focusing on the immediate challenge posed by Coronavirus, strong trading arrangements with both the European Union and USA will support recovery and future growth.

“The government has set a high ambition for UK-US talks, and it will be particularly important to get the details right over the coming months to ensure that any prospective agreement delivers tangible benefits to businesses and communities across the UK.

“Companies will welcome the focus on helping more UK SMEs grow their trade with partners in the US, and on finding ways to move goods, people and data across borders between the two countries more smoothly.

“We will be working constructively with the Government to ensure the needs of UK business communities are considered in negotiations with the USA and with other key trading partners.”

As the government mulls plans to lift lockdown, British Chambers of Commerce President, Baroness Ruby McGregor-Smith, has written an open letter to the Prime Minister setting out principles for a phased restart of the UK economy.

The leading business group set out its integrated approach, the first step in a three-stage process, as the government prepares to ease initial lockdown restrictions.

The letter reads: “The fight against the virus must remain the top priority, but the planning and communication of a carefully phased approach to lifting lockdown must begin immediately if we are to harness the public health and economic benefits, both now and in the future.”

Praising the work of Chambers of Commerce across the UK as the “first responders” of the business world, the letter is accompanied by detailed policy proposals for safely reopening the economy, comprising steps to:

• Safely reopen public spaces and restore services (including schools and public transport)
• Safely reopen workplaces and commercial spaces
• Minimise job losses and business failures
• Rebuild supply chains and customer bases; and
• Put the UK economy on a high-growth, high-wage and low unemployment trajectory as soon as possible

The letter continues: “This is a time to be bold. Government should not shy away from sustaining high levels of public spending in order to restart and renew our communities and the economy in the short and medium-term, while not tying the hands of future generations.

“An expansionary fiscal policy, including a commitment to transformative infrastructure investment, will be needed in order to generate the returns that will help to pay down the national debt in the longer-term.

“We see the journey ahead as having three phases: 

• Restart: a phased reopening of the economy
• Rebuild: building resilience for firms and households
• Renew: returning to prosperity and growth

“We plan to share some principles for each of these three phases over the coming weeks, beginning today with ‘Restart’.

“Fundamental prerequisites to beginning this journey include mass testing and contact tracing; clear decisions and guidance on what PPE is needed in workplaces; and proactive steps to ensure adequate supply of PPE to both the health service and to businesses where necessary.”

The letter welcomes the “speed and scale’ of existing government support schemes and indicates that they will need to “continue to evolve to support a phased restart of the economy, enabling businesses to survive through this crisis and thrive in the future.”

The letter concludes: “We commit to working with you and your colleagues across Government on exploring these phases in detail as we plan our path forward. We owe nothing less to our businesses, and the communities and people they support, who have been battered by this storm.”

The full letter can be viewed here.

A new £617m fund to help businesses with under 50 employees who had been excluded from previous coronavirus support measures has been welcomed by business leaders.

The grants are aimed at small businesses with ongoing property costs and will be administered by local authorities, business secretary Alok Sharma and Simon Clarke, minister for regional growth and local Government, Simon Clarke announced.

Local authorities will receive a 5% uplift in funding to help support local small businesses that have fallen outside the scope of the business grants fund scheme.

Grants of £25,000, £10,000 or any discretionary amount under £10,000 will be available to small firms that have demonstrably been impacted by Covid-19 but cannot access the small business grants previously made available to those who pay business rates.

While local authorities will be able to use their discretion when allocating the funds, they have been asked to prioritise businesses in shared spaces, regular market traders, small charity properties and bed and breakfasts that pay council tax rather than business rates.

Commenting on the discretionary fund for small businesses that have previously been outside the scope of the business grant funds scheme, Nova Fairbank, head of Policy for Norfolk Chambers said:

“We have been calling for additional support for businesses and entrepreneurs who have fallen between the cracks, so it is welcome to see additional funding allocated to support some of these hard-pressed firms. 

“Clarity and speed are of the essence. Many of the companies that have been unable to use existing support schemes are already on borrowed time – and will need these grants paid out swiftly if they are to survive.”