On Wednesday 11th March, Chancellor Rishi Sunak delivered his first Budget in his new role, announcing the government’s tax and spending plans for the year ahead, following uncertain times due to the Coronavirus Disease (COVID-19).
Before talking about what it means for the businesses we support at Johnson Reed, here are the key points that affect businesses.
- Hospitality businesses to have their business rates cut this year
- Rates for small firms abolished altogether
- Firms with fewer than 250 staff will receive refunds for sick pay payments for two weeks
- Small firms will be able to access “business interruption” loans of up to £1.2m
- Business rates in England for firms with rateable value below £51,000 will be abolished for firms in the retail, leisure and hospitality sectors
- 100% discount to all eligible retail and leisure businesses, including caravan parks, gyms, small hotels and B&Bs, sports clubs, nightclubs, clubhouses and guest houses
- Any eligible retail, leisure or hospitality business with a rateable value below £51,000 will, over the next financial year, pay no business rates whatsoever
- Up to £1bn of attractive working capital loans to support small businesses
Hospitality businesses suffer significantly in these times, and the cuts to their business rates will be welcome to account for loss of trade or revenue. The news is even more welcomed for small firms, who need all the support required in uncertain times to keep afloat and continue to trade.
It is overdue and very welcome news for hard-working British businesses. Our customers deserve support after several years of economic uncertainty around Brexit, and now Coronavirus. By abolishing business rates to all SMEs below a rateable value of £51,000 these businesses now have the support they need to continue to trade and grow.
By working with the government, we can all support small businesses through the worst times. We are working with lenders and funders to continue to play a crucial role in supporting SMEs across sectors, especially those that suffer worse, such as hospitality, catering and retail sectors.
It is vital that businesses are aware of the options available to account for cashflow and finance, businesses are encouraged to raise awareness early if there may be any additional finance requirements.
Mark Johnson, Managing Director of Johnson Reed commented “We encourage all businesses to take the necessary steps and precautions provided, as a result of this budget. In addition, Johnson Reed and our panel of lenders are on hand to support small and medium enterprises where required, get in touch with the team for advice or to start a conversation about your finance.”
Contact our team on 0161 429 6949 or [email protected].
