The Chancellor has given the Governments budget statement for 2021. The budget is largely is in response to Covid-19 and the economic downturn.
Overall, North Tyneside Business Forum is pleased with the announcement. We welcome specifically the support for businesses to restart, and the ongoing financial support provided such as reduction in VAT, business rates holidays, furlough scheme etc however, recognise that more is required for other sectors and those without commercial property.
As with all of the Government announcements, we like to provide a simplified version of the announcement for the business community in North Tyneside. Below is what we know, and what our members are asking about:
Response to Covid-19 Financial Support
- An extension of the Coronavirus Job Support Scheme to September 2021 across the UK.
- An extension of the UK-wide Self Employment Income Support scheme to September 2021, with 600,000 more people who filed a tax return in 2019-20 now able to claim for the first time.
- £5 billion for new Restart Grants – a one off cash grant of up to £18,000 for hospitality, accommodation, leisure, personal care and gym businesses in England.
- A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million, and asset and invoice finance between £1,000 and £10 million, to help businesses of all sizes through the next stage of recovery.
- Extension to the VAT cut to 5% for hospitality, accommodation and attractions across the UK until the end of September, followed by a 12.5% rate for a further six months until 31 March 2022.
- 750,000 eligible businesses in the retail, hospitality and leisure sectors in England will benefit from business rates relief.
- £90 million funding to support our government-sponsored national museums in England due to the financial impact of Covid-19.
- £300 million for major spectator sports, supporting clubs and governing bodies in England as fans begin to return to stadia.
- Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.
- Extension of the Film & TV Production Restart scheme in the UK, with an additional £300 million to support theatres, museums and other cultural organisations in England through the Culture Recovery Fund.
Additional Measures
- An extension to the temporary cut in Stamp Duty Land Tax in England and Northern Ireland until September will support the housing market and protect and create jobs.
- A new mortgage guarantee scheme will enable all UK homebuyers secure a mortgage up to £600,000 with a 5% deposit.
- Six-month extension of the £20 per week Universal Credit uplift in Great Britain, with the Northern Ireland Executive receiving additional funding to match the increase. A one-off payment of £500 to eligible Working Tax Credit claimants across the UK.
- Extension of the apprenticeship hiring incentive in England to September 2021 and an increase of payment to £3,000.
- £7 million for a new “flexi-job” apprenticeship programme in England, that will enable apprentices to work with a number of employers in one sector.
- Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.
- More than doubling the legal limit for single contactless payments, from £45 to £100
- £10 million to support veterans with mental health needs across the UK.
- £19 million to tackle domestic abuse in England and Wales, with funding for a network of ‘Respite Rooms’ to support homeless women and a programme to prevent reoffending.
- To further support the cashflow of businesses, the government is extending the loss carry back rules worth up to £760,000 per company.
- £100 million for a new Taxpayer Protection Taskforce to crack-down on COVID fraudsters who have exploited UK Government support schemes.
We understand the need for more detail about follow on financial support as highlighted above and when we have that info we will of course be sharing it with members. We appreciate the anger and frustration from businesses about lack of information especially on restart grants and the funding coming to businesses, who is eligible etc. Unfortunately, it is out of our control and like you we’re sure you’re all waiting and watching for further news from central Government. We are working with the Local Authority to share information about further information however, until Government guidance is available and verified, this cannot be shared.
If you have a direct enquiry about the current Local Restrictions Support Grant scheme, please direct these to the Local Authority at [email protected].
If you’d like us to raise anything with our partners please message the Forum Facebook page, email us at [email protected] and we’ll pick them up.
