Welcome to our latest Policy Update. In these updates, The Entrepreneurs Network focuses on recent policy development and sets out (nearly) everything an entrepreneur needs to know about the topic. If you’re joining us for the first time, you can read our past updates here.
In response to coronavirus, the Chancellor Rishi Sunak has announced additional measures to support business through the unprecedented disruption. The measures expand on those announced last week in the Budget. The Chancellor stated: “We will do whatever it takes to protect our people and businesses from the effects of this global economic emergency brought on by the Coronavirus pandemic.”
Unlimited loans and guarantees to support firms through this period
The key measure announced was £330 billion (equivalent to 15% of GDP) worth of loan guarantees to ensure that “any business who needs access to cash to pay their rent, the salaries, suppliers, or purchase stock, will be able to access a government-backed loan, on attractive terms.”
They are also increasing the amount businesses can borrow through the Coronavirus Business Interruption Loan Scheme from £1.2 million to £5 million. Furthermore, businesses can access the first 6 months of that finance interest free, with the government paying.
£20 billion of business rates support and grant funding
At the budget the Chancellor announced that businesses in the retail, leisure and hospitality sectors with annual rateable values under £51,000 would receive a one year 100% business rates holiday. The Chancellor has now gone further and extended it to all businesses in the above sectors. On top of that, retail, hospitality and leisure businesses, with a rateable value over £15,000 and below £51,000 would receive a £25,000 grant.
Some 700,000 businesses don’t pay business rates at all because their premises are too small. At the budget, it was announced that they would receive a £3,000 grant. This has been increased to £10,000.
Regulatory changes on the way
The Chancellor has also instructed his cabinet colleagues to meet with business leaders and representatives in the most affected sectors, and identify opportunities to support them through regulatory forbearance.
The Housing Secretary Robert Jenrick has already announced that cafes, restaurants and pubs can now automatically become takeaways and food delivery companies, without applying for planning permission.
We are talking to the government, so if there are regulatory changes that could help your business weather the storm then let me know.
This is a fast-moving situation. We’ll make sure to keep you up to date as further policy moves are announced. To receive these, make sure to sign up here.