The first coronavirus lockdown had a devastating effect on the economy. Many businesses had barely started to recover when the second lockdown hit. Problems were then exacerbated by the uncertainty around regulations and the length of time the lockdown would last. That means that many of these businesses are becoming even more desperate for support.
In the three-month period from April to June, 6476 businesses in Bristol claimed to be experiencing “severe financial distress”. This increased to 6500 during the July to September period. There are some industries, such as media and financial services, that are experiencing stability. Others, however, including real estate and retail, are struggling. Hospitality and tourism are other areas that are particularly vulnerable to lockdowns and increasing restrictions.
Coronavirus Job Retention Scheme
Some local business will be eligible for the measures created by the national government, most obviously through furlough, more correctly called the Job Retention Scheme. This allows an employer to claim some of their employees’ wages from the government, ensuring that they can still be paid even if the business has closed. The furlough scheme has been extended until the spring of 2021 after criticism of plans to close it during the ongoing pandemic.
Some people and businesses still fall through the furlough support net, which has led for calls for the government to widen its availability. There is also concern that these schemes may end again whilst businesses are still struggling. Many companies are looking for longer-term reassurance to allow them to plan for the future.
Local Restriction Support Grants
Local Restriction Support Grants are another form of support offered by the government. These grants are aimed at charities and businesses that have been forced to close because of lockdowns or tiered restrictions. The size is dependent on rateable values, with £1334, £2000 and £3000 the three possible amounts. You can only apply for a Local Restriction Support Grant if you have an active business rates account.
Local Restriction Support Grants may also be available to companies that have not closed completely, but have been forced to adapt their usual business practices. Examples may include the adoption of “click and collect” or delivery services instead of normal instore shopping.
Eligible businesses include:
– Indoor and outdoor leisure facilities
– Restaurants, bars, pubs and other hospitality venues.
– Hostels, hotels and B&Bs.
– Non-essential retail.
– Car washes.
– Personal care services.
– Entertainment venues.
Additional Restrictions Grant Scheme
This scheme closed to new applications on 27th November, but was offered in addition to the Local Restrictions Support Grants.
Coronavirus Business Interruption Loan Scheme
These are loans for small and medium sized businesses where the government will guarantee the lender up to 80% of the total, as well as paying any interest or fees during the first year. You can apply until the end of January 2021, provided that you can prove the viability of your business outside of the pandemic and that you have experienced difficulties specifically because of Covid-19.
Bounce Back Loans Scheme
These government-backed loans are available for small and medium sized businesses. The amount ranges between £2000 and £50,000 and will be interest-free for the first 12 months.
Deferring Payments
Some businesses and workers may be able to defer VAT or self-assessment payments until 2021. You may also be able to apply for more time to file any accounts with Companies House under the Corporate Insolvency and Governance Act and The Companies etc. (Filing Requirements) (Temporary Modifications) Regulations 2020.
The original VAT deferment scheme from the first lockdown is still in operation. You can either pay the deferred amount before the end of March or you can signup to the new version of the scheme when it launches in early 2021. This will allow you to spread payments in up to 11 interest-free instalments. The final deadline will be March 2022.
Stopping Business Evictions
A moratorium on business evictions was extended in September to last until the end of the year. This does not excuse you from paying rent, but will give you breathing room during the Christmas period to concentrate on keeping your business operational and your staff employed.
Some industries, including those in the leisure, retail and hospitality sectors, may be able to apply to have rate payments suspended during this tax year. Nurseries may also be eligible for a business rates holiday.
Coronavirus Statutory Sick Pay Rebate Scheme
If you have less than 250 employees and some of them have been forced to take sick leave because of Covid-19, you may be eligible for the Coronavirus Statutory Sick Pay Rebate Scheme. This will allow you to claim back any Statutory Sick Pay you paid to your employees.
North Somerset Enterprise Agency Scheme
In Weston-super-Mare and North Somerset, North Somerset Council has partnered with the Department for Business and Industrial Strategy to help fund the West of England Universal Business Support programme (UBS). This in turn has helped support a new scheme from the North Somerset Enterprise Agency (NSEA) to offer practical advice and resources for local businesses.
In particular, the NSEA runs regular workshops covering everything from how to start a business to how to improve your business resilience both during and after the pandemic. The three-day courses mean businesses do not have to spend extra on advice and support, as it is available for free.
NSEA support includes business counsellors based at the agency’s Weston headquarters as well as various pop-up services in offices and libraries across the county. Online resources are also available, with workshops during the lockdown all being offered remotely. Each course guarantees three hours of direct contact for every participant.
