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.
Related Articles
Integrating your PDQ will save you money
In this day and age, everybody is in a rush. All the time. It’s just how the world works now, everything can be done at the push of a button, and with the slow removal of human beings who need time to process things, Integrating your PDQ is key. Anyway, until AI takes...
New Ways to Advertise in 2021
The world is slowly but surely going back to normality. By slowly, we mean a snail with a parachute attached and surely we mean as unsure as the weather in the UK. However, by the looks of things, the hospitality industry will remain open from now until forever. With...
You Don’t Need to Pay Through The Nose For Effective Marketing
Let me start by stating the obvious: an effective digital marketing strategy is essential for any business that wants to make a profit. What might not be quite so obvious, however, is the fact that this doesn’t actually need to cost you the earth. It’s been estimated...
Stay Up to Date With The Latest News & Updates
Our Mission
To create a personal approach to point of sale that creates powerful results in and around the country for an array of hard-working business owners.
Join Our Newsletter
0 Comments