Budget 2020: Small businesses to be supported following coronavirus outbreak

Chancellor of the Exchequer, Rishi Sunak, has pledge £30bn to help the UK economy through the coronavirus outbreak – with a particular focus on sick pay and protecting small businesses.

Sunak, who, just four weeks into the role, has had to hastily rewrite the government’s financial plans for the year ahead, revealed that he ‘knows how worried people are’ and that the government is doing ‘everything we can’ to keep people healthy and the country financially secure.

He went on to tell MPs that he will do ‘whatever it takes’ to protect the economy and it is likely that there will be a temporary disruption’ with up to 20% of people off work in any one time, and shortages of supply.

New measures following coronavirus include:

• Statutory sick pay for those advised to self-isolate – even if they have not displayed symptoms. Sick notes will be available by calling NHS 111.
• A ‘temporary coronavirus business interruption loan scheme’ for banks to offer loans of up to £1.2m to support small and medium-sized businesses.
• Business rates suspended for one year for firms with a rateable value below £51,000. Any company eligible for small business rates relief will be allowed a £3,000 cash grant (a £2bn injection for 700,000 small businesses).
• The government will meet costs for businesses with fewer than 250 employees of providing statutory sick pay to those off work due to coronavirus.
• The government will make it quicker and easier for those working on a self-employed basis to access benefits.

Hair and beauty industry body, NHBF, has shared its thoughts on the measures, with chief executive Hilary Hall commenting: “Hair and beauty salons are crying out for help to cope with the potential mass disruption of their businesses caused by the coronavirus. If clients stay away from salons for fear of catching or passing on the virus, or if large numbers of employees are off sick, salons will struggle financially.

“The measures announced by the government today will go some way towards supporting salons, but if the spread of the coronavirus continues at the speed it is now, it’s unlikely that the support will go far enough.”

Has your business been affected by Coronavirus already? We want to hear from you – email editorial@scratchmagazine.co.uk