CHAMBER NEWS
A fast-changing business environment
The business, political and economic landscape, both regionally and nationally, has changed beyond all recognition as Government has tried to support businesses affected by coronavirus to minimise impacts on the economy. Here is a round-up of the Chamber’s reaction to some of the big business policy announcements of the past few weeks:
GDP FIGURES The UK economy contracted by two per cent in the first quarter of 2020 after shrinking by 5.8% in March, according to the latest Gross Domestic Product (GDP) output estimate. It showed the first direct effects of the Covid-19 pandemic, and the
resulting lockdown, on the UK’s economy. The first quarter fall was the biggest since the financial crisis of 2008,
while the monthly decrease in March was the worst since records began. Chamber Chief Executive Scott Knowles said: “The Q1 GDP figures made
for grim reading and provided a stark reminder of the dire economic consequences that the coronavirus lockdown has brought about. “While the Government’s numerous interventions to support business
through this period have been welcome and necessary, focus needs to shift quickly towards rebooting the economy in the safest way possible so businesses can start building the economic recovery in a swift and sustainable way.”
FURLOUGH EXTENSION Chancellor Rishi Sunak announced a further extension to the Government’s Coronavirus Job Retention Scheme to October. Chamber Chief Executive Scott Knowles said: “Businesses will welcome
this further extension, which will help eliminate some of the uncertainties businesses and their employees are still facing. “The potential to keep the scheme running to October, albeit with
employers contributing, will help to aid the transition back to work, while allowing flexibility to bring people back into the workplace on a part-time basis, where it is safe to do so, is also something we’ve been campaigned for.”
UK GLOBAL TARIFF A new UK Global Tariff has been unveiled which will replace the EU’s Common External Tariff on 1 January 2021, at the end of the Brexit transition period. It aims to support the UK’s economy by making it easier and cheaper for
businesses to import goods from overseas. David Pearson, Director of Partnerships at the Chamber, said: “The new
UK Global Tariff will provide welcome clarity for businesses as they look to develop new working relationships with their counterparts within the EU. “With any tariff changes, there are both winners and losers. Support will
be required for the industries, places and people affected by tariff changes, which will have been compounded by the impacts of the ongoing coronavirus pandemic.”
18 business network June/July 2020
TRADE CREDIT INSURANCE GUARANTEE The Government announced it is to temporarily guarantee business to business transactions currently supported by Trade Credit Insurance. Trade Credit Insurance insures suppliers selling goods against the
company to which they are selling defaulting on payment, giving businesses the confidence to trade with one another. David Pearson, the Chamber’s Director of Partnerships, said: “This is
another welcome financial support intervention from Government, which shows it is continuing to listen to the concerns of businesses and addressing them swiftly during this unprecedented time of crisis. “The provision of Government-backed guarantee to transactions covered
by Trade Credit Insurance will help ensure this vital lifeline remains available to businesses during and after this crisis, helping to maintain supply chains and trade.”
BUSINESS RATES REVALUATION POSTPONEMENT Communities Secretary Robert Jenrick MP announced that following economic shocks caused by the Covid-19 pandemic, the legislation to bring the next business rates revaluation forward by one year, from 2022 to 2021, has been scrapped. Chamber Chief Executive Scott Knowles said: “Although this move will
put an end to the uncertainty caused by the planned 2021 business rates revaluation, it won’t address the fundamental issues of our broken business rates system, which have long needed fixing. “Rather than use the Covid-19 pandemic as a reason to postpone the
next revaluation, Government should instead use it as the stimulus to address the longstanding flaws within the current system.”
CORONAVIRUS GRANT TOP-UP Business Secretary Alok Sharma announced that an additional £617m ‘top up’ to the Coronavirus Small Business, and Retail, Hospitality and Leisure grant funds would be made available. Chamber Chief Executive Scott Knowles said: “This move is welcome and
will go some way to reducing many of the issues members have raised with us about not being able to access SBGF or RHLGF because they occupy shared space or multi-tenanted premises. “However, it’s vital that the businesses which need it can access this
additional emergency funding quickly, so we would urge all local authorities to follow proven best practice and prioritise cases which meet this expanded criterion.”
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