On wednesday 11th March 2020, the Conservative government unveiled the first budget of their new term. Kevin Ross, director and head of property at Brown Turner Ross offers comment on the Conservative government’s first budget.
Kevin Ross, director and head of property at Brown Turner Ross offers comment on the Conservative government’s first budget:
“As expected the Chancellor included measures to support the public health response to Coronavirus, which included a 100% reduction in rates for retail, leisure and hospitality businesses with a rateable value below £51,000 and a £3,000 cash grant for some small businesses.
“As a small business owner, the prospect of temporarily losing workforce due to Coronavirus has been a concern for Brown Turner Ross and for many of our clients, I was relieved to see statutory sick pay measures announced to support businesses and employees. This is particularly important as we need to ensure our citizens are supported and the country continues to run whilst we battle the outbreak.”
Here are some of the key points announced, which are of particular interest to small businesses:
- Government to temporarily abolish business rates for retail, leisure and hospitality businesses with a rateable value below £51,000, meaning eligible businesses will pay no business rates whatsoever for the next year. Tax cut is worth over £1bn, saving each business up to £25,000.
- £3,000 cash grant for small businesses that are eligible for the small business rates relief, to support them during the coronavirus outbreak, a £2bn cash injection that will benefit 700,000 of our smallest businesses.
- Statutory sick pay now available from day one for those who self isolate without symptoms
- Benefits for self employed are also available from day one
- Minimum income floor in Universal Credit temporarily removed
- Gov will fund SSP for two weeks for businesses fewer than 250 employees
Coronavirus loan scheme
- The cost of salaries and bills will offer loans of up to £1.2m to support small and medium sized businesses.
- The Chancellor said: “The government will offer a generous guarantee on those loans, covering up to 80% of losses, with no fees, so that banks can lend with confidence. This will unlock up to £1bn of attractive working capital loans to support small businesses, with more as needed.”