Firms are asking for more support, as changes in furlough and business rates came in July
Tingi and hospitality firms have made the case for some business support measures to be extended this month, after ‘independence day’ was delayed.
In addition firms will begin to pay anything VAT postponed since last year.
However, the taping of government support came despite a delay in the lockdown easing plan until July 19. That means social distance measures are still in place that could limit customer numbers.
Federation of Small Businesses Mike Cherry warned recently: “Unless the Government acts now, it risks a serious economic flashpoint this Thursday – a moment where financial support begins to wane, further trade changes will take effect and payments on emergency loans begin premium due. “
In furlough, the government contribution has reached 70% from 80% effective from July 1. The contribution has dropped to 60% for August and September. More details are here.
Pauline van Brakel, chief product officer at money app Yolt, said: “The changes to the furlough scheme that take effect will be more costly for employers of workers, and as a result the concern for users may be understandable. still of the scheme Despite the fact that many restrictions have been lifted, and things feel like we may return to some normalcy, we know that many continue to receive government support. “
Nakatingin business rates, the holiday was reduced from 100% to 66%. The 15-month holiday during the pandemic helped companies in the capital collectively save close to £ 3.5 billion, according to rate expert Altus Group.
Mark Selby, head of the Wahaca restaurant chain, said: “The fact remains that hospitality and retail businesses alike will continue to suffer in the short to medium term as a result of foot reduction. In these locations. city centers particularly affected by the shortage of both commuters and tourists, it is important that the government act to compensate for the delays in reducing restrictions by providing an expansion of business relief rates. “
Patrick Frawley, founder of the East London Pub Co., said: “Extended restrictions continue to disrupt businesses in London if offices are still closed and tourists are gone.”
Earlier this week Kate Nicholls of UKHospitality said an immediate extension of the business holiday rate could fix some commercial concerns “but we will still deal with aftermath of employment costs threatening jobs”.
Paddy Lillis, general secretary of Usdaw, said the union was “extremely concerned that full business rate relief is ending now, leading to further cost pressures that could push many non-retailers food to measure, cut work or completely crumble ”.
Usdaw wants to see the holiday at business rates 100% expanded.
A government spokesman said: “We deliberately took our support long enough to give reassurance to people and businesses over the summer, and that support, which is a huge amount of funding, continues.”
“The furlough scheme is in place until September and is among the most generous schemes in the world – providing £ 65 billion in support and protecting 11.5 million jobs. The government will continue to pay 70% of workers’ wages to July, which asked businesses to occupy only 10%. ”
He also pointed to restarting grants worth up to 18,000 per business, and business rates being exported and reduced to VAT, both in place until March next year.