Written By hayley

July 21, 2021

The Spring Budget for Small Business

It’s been a few weeks since the budget, I’m sure that anybody who has sat down to read this probably didn’t sit and watch the budget unfold live. Which is fair enough, as it is not necessarily peak television now is it. The roadmap which is discussed in another article starts with a gradual reopening eventually leading to a full opening in the summer. We pray anyway. Let’s not even think about vaccine passports for now, nobody likes a life drainer.

So, the budget outlined a number of proposals in a package of £65bn to kick start small businesses, and keep them up and running.

 

Restart Grants/Loans:

‘Bounce back’ loans (yes, people get paid ridiculous amounts to come up with these names) finished at the end of March, ready for the opening of non essential retail and somewhat hospitality on April 12th. With this in mind, non essential retailers will be eligible for £6k grants (which seems measly considering they’ve been closed for a large part of the year). Whereas hospitality and leisure industries can claim up to £18,000. Sunak’s reasoning for the higher grant was due to retail opening sooner. The grant scheme seems to have had positive feedback by business owners regardless.

 

Furlough Scheme extension:

First of all, who knew this was called ‘The Coronavirus Job Retention Scheme’ and not just furlough? Anyway, it’s been extended through September and until the end of July there will be no changes (Government pays 80% of wages up to £2,500 a month). After July though, employers will be expected to pay 10% towards the hours that staff do not work that month. Increasing by 20% the following months.

 

Business rates holiday extension:

Until the end of June, the hardest hit retail, leisure and hospitality industries are eligible for the extension. The rest of the year, a switch to a two thirds discount up to £2million for closed businesses. Sunak described it as a “£6bn tax cut for businesses.”
Let’s explain it in human terms. No business rates for 3 months. Up to 66% relief for the rest of the year. SIMPLE. Could’ve just said from the start.

VAT cut extension:

The temporary 5% rate of VAT on food, soft drinks, hotel accommodation and leisure attractions will be extended until September 30th. Another little booster is the interim rate of 12.% for the six months following meaning their won’t be a return to the levels of early 2020 until April next year.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

You May Also Like…

 

What does the ‘Roadmap’ and the Reopening of Britain mean for Hospitality?

With the first stage of the ‘grand reopening of Britain’ just passing and students completing their long-awaited or (short-lived depending on the...

Ways to get customers through the door

The past year (yes, a whole year) has been difficult for businesses to say the least. You don’t need to be told that, it’s painfully obvious. The...

Predicted Retail Trends In 2021

Let’s not sugar-coat it: the British high street has struggled in the last decade. If it wasn’t already hard enough for shops to compete with the...

Don’t Miss Out!

Marketing Help

We know marketing can be an absolute minefield but it doesn’t have to be overcomplicated or cost a bomb, contrary to belief.

Useful News

General business centred help, tips and tricks… explore the latest trends as well as advice on how to thrive in the retail and hospitality sectors.

Big Impacts

These quick and easy little changes will save you money, and actually it’s more than you think.

Ready to

get started?

Transform your business today with an epos system that grows with you.

Sign up for Updates
Stay up to date and in the know! Don't worry you won't receive any SPAM...