Business News
‘BoB’ report names areas in need of urgent support
The Chamber has launched a major report setting out areas of Covid-19 business support that require urgent Government action. The ‘Back Our Businesses’ report follows a Chamber
survey reporting that one in 20 businesses say they would be closed or in administration in six months’ time, without further government support. A further 21 per cent said they expect to experience a significant decline. In response to the latest national lockdown, Chancellor
Rishi Sunak announced a further round of grants worth up to £9,000 for businesses in beleaguered sectors such as retail, leisure and hospitality.
Proposed measures set out in ‘Back Our Businesses’, produced in consultation with Chamber members, include: • Enhanced grant support for closed businesses with high overheads and other significantly impacted organisations - such as supply chain firms and charities – which are falling through the gaps in existing schemes;
• Changes to the Coronavirus Job Retention Scheme and the Self Employed Income Support Scheme to reduce overheads for closed businesses and widen support to those currently excluded;
• Changes to the Coronavirus Business Interruption Loan and Bounce Back Loan Schemes to support business recovery and accessing finance for future growth;
• Extending business rates relief, VAT reliefs and bringing forward further VAT deferral schemes.
However, the Chamber does not believe the current
measures go far enough and is urging the government to bring forward a ‘comprehensive package of support for 2021’. Chamber chief executive Paul Faulkner said: “Our
message to the government is simple - the time for incremental, reactive, short term measures is over. Businesses urgently need a comprehensive package of support for 2021.
‘If the Government does not act quickly we will see significantly more businesses closing their doors for good’
“The support made available to date has been a
game changer for many - but it does not go far enough for the hardest hit, particularly in light of the latest lockdown. Saving previously viable businesses and jobs through this short term dramatic disruption just makes sense. It will result in a stronger economic and social outlook (and associated higher tax returns and lower defaults on Government backed loans) for many years to come. We need the Chancellor to step up again and ‘Back Our Businesses’.” Director of policy and strategic relationships
Henrietta Brealey added: “If the Government does not act quickly we will see significantly more businesses closing their doors for good. “For businesses that have been unable to trade fully
(or at all) since March and those that have lost their critical Christmas period – time is running out. We urge the government to listen and take action.”
Grants for hospitality sector
Retail, hospitality and leisure businesses will receive up to £9,000 in one-off grants to help them through latest Covid-19 restrictions, Chancellor Rishi Sunak has announced. Mr Sunak has revealed new
measures totalling £4.6bn to help struggling firms, including a support package which also includes a £594m discretionary fund for other businesses that might be affected, an additional £1.1bn in discretionary grant funding for local authorities, Local Restriction Support Grants worth up to £3,000 a month and an extension of the furlough scheme. In addition, the Chamber has
welcomed a £10,000 cash boost for more than 400 Birmingham-based hospitality and leisure businesses which had missed out on previous Government Covid support schemes. This support comes after Birmingham City councillors decided to use funds from the £22.8m Additional Restrictions Grant (ARG) to aid these businesses. The grants will be paid to eligible businesses with a
with them and the wider economy.” Chamber chief executive Paul
Faulkner welcomed the news, but added that for many closed businesses with a high rateable value, more Government support was needed. He said: “The hospitality and leisure sector plays such a critical role in our city on both employment and its attractiveness as a great place to live, work and do business. “For many, ‘closed’ businesses
Rishi Sunak: Chamber pleads for more help for Covid hit businesses
rateable value of over £51,000, which have previously not been eligible for government grant funds or who require emergency support to protect jobs or stay afloat. Council deputy leader, Cllr Brigid
Jones, said: “It’s important we do everything we can to protect these businesses and the livelihoods associated with them. This emergency intervention will provide a much-needed lifeline to preserve the future of another 421 businesses, the jobs associated
with a high rateable value, the current national Government grants do not come close to covering key overheads. “While the support provided is
unprecedented and most welcome, there are number of areas which our members tell us still need action such as VAT reliefs and deferral, support for those excluded from current schemes, removing NI and pension contributions from furlough for closed businesses and business rates relief into 2021/22. “We will continue to call on the
Government to ‘Back Our Businesses’ and lobby on our members’ behalf over the coming weeks and months.”
Firm pioneers 5G network
A West Midlands manufacturer is to become the first smaller sized business to use a 5G private network to boost productivity. AE Aerospace is based in
Saltley and is an engineering business which produces parts for customers including Rolls Royce, Raytheon UK and Moog. AE believes 5G will improve
productivity and lead to new revenue opportunities, and is now trialling the technology in partnership with WM5G Limited, a multi-million-pound programme that both the West Midlands Combined Authority (WMCA) and the government have set-up to develop the UK’s first region- wide 5G testbed. Robert Franks, managing
director of WM5G, said: “West Midlands 5G is committed to supporting the recovery and growth of the manufacturing sector by transforming productivity. “The trials AE Aerospace
are undertaking with us will clearly illustrate the value of 5G for manufacturers, not only across the West Midlands, but the whole UK. We are excited to get underway and to deliver some cutting-edge results with the support of Worcestershire 5G and BT as our technology partners.” West Midlands mayor Andy
Street said: “Manufacturing is the bedrock of the West Midlands economy and the ability to harness the power of 5G and other new technologies will help our manufacturers to not only remain competitive in a fierce global marketplace but put themselves at the cutting edge. “We face a massive challenge to get our economy back on track once this pandemic is finally over and we must capitalise on new technology to supercharge that recovery. “By winning the
Government competition to become the UK’s first large- scale 5G testbed, our region and it’s businesses are in a unique position to test and prove the opportunity for 5G to transform manufacturing productivity.”
February 2021 CHAMBERLINK 19
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