The Chancellor has introduced a series of measures focused on some key areas that have been hard hit due to Covid-19.
In what the Chancellor referred to as ‘Phase 2’ of the Government’s response, Rishi Sunak announced a number of measures of support including:
Phase 2 is all about bridging the gap as we move from the severe and sudden impact of Covid-19 that lead to lockdown, and look to transition back to a ‘new normal’. Phase 3, which will focus on ‘Rebuilding’ is due to come in the Autumn Budget.
With this ‘Summer Economic Statement’ and measures, the Chancellor is looking to:
The measures introduced are broadly welcome. Anything that can help protect, create and support jobs, plus specific measures to help some sectors and to encourage energy efficiency are clearly positive. However, there is no doubt that these measures will not go far enough for some.
Only time will tell whether these measures will have the desired impact and whether they will inject activity in the areas they are targeting.
The measures also pose some questions, including:
The impact of these measures will affect many SMEs. If you have furloughed staff, whilst the promise of a £1,000 bonus may not be enough for you to keep on all your furloughed staff, where the case is marginal, this bonus may be enough to tip the balance in favour of keeping the jobs.
How these changes affect you will vary from business to business and person to person. We want to help you get through these tough times and benefit from the support that is available to you.
That is why we are offering a free initial business review to SMEs to help you navigate through these coming months. The review comes in the form of a 30-minute remote consultation.
We have also produced a helpful guide that summarises the key schemes.
Please do get in touch if you would like a copy of the guide or to book your consultation or for any further guidance or advice that is specific to your business and your circumstances.