Millions of self-employed individuals will receive direct cash grants though a UK-wide scheme to help them during the coronavirus outbreak, the Chancellor announced today.
In the latest step to protect individuals and businesses, the Chancellor, Rishi Sunak has set out plans that will see the self-employed receive up to £2,500 per month in grants for at least 3 months.
Millions of people across the UK could benefit from the new Self-Employed Income Support Scheme, with those eligible receiving a cash grant worth 80% of their average monthly trading profit over the last three years. This covers 95% of people who receive the majority of their income from self-employment.
Cleaners, plumbers, electricians, musicians, hairdressers and many other self-employed people who are eligible for the new scheme will be able to apply directly to HMRC for the taxable grant, using a simple online form, with the cash being paid directly into people’s bank account.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. To qualify, more than half of their income in these periods must come from self-employment.
To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
Energy bills remain a top business concern, as many face a drastic reduction in their support
Energy market for businesses must be reformed to protect firms and correct market failures
Firms are facinga further financial squeeze, with corporation tax, living wage and business rates all changing from April 1st
As businesses face an 85% decrease in energy support from tomorrow, the British Chambers of Commerce (BCC) has highlighted the need for an energysupport contingency plan, and is calling for increased, targeted help for firms who desperately need it.
The Chambers are also calling on Government to increase Ofgem’s power to strengthen protection for businesses in the energy market.
Nova Fairbank, Chief Executive at the Norfolk Chambers of Commerce, said:
“We have been signalling for months that many Norfolk businesses will struggle toafford their energy billswhenfinancial assistance reduces by 85%, with many receiving a fraction of their original support. Almost half (47%) of firms say paying bills will be difficult from tomorrow onwards.
“But of the seven energy policies we advocated for the Government to include in this month’s Spring Budget, not one was acted upon.
“Flexibility to increase support for those who desperately need it – ignored. Easing the burden of claiming VAT on energy – ignored. Funding for improved business energy efficiency – ignored. And so the list goes on.
“Government also failed to heed our calls to increase regulation of the business energy sector. The energy crisis faced by firms and households are two sides of the same coin. Yet, non-domestic customers do not enjoy the same protection as households.
“To ensure competition in the business energy sector, and solve market failures, Government must ensure Ofgem has the necessary powers to properly regulate the industry. We are also asking Ofgem and Government to introduce a ‘duty to supply’ mechanism to the non-domestic energy market, to ensure businesses can access fixed rates, providing them with certainty and stability.
“Along with the reduction in energy support, businesses are facing several other changes in the business environment from tomorrow. Corporation tax is increasing, as is the national living wage, while a number of firms will see their business rates change due torevaluations.
“These changes will have a significant impact, but Government is yet to offer any meaningful support to offset the challenges currently facing so many UK businesses.”
The Kickstart Scheme is aimed at 16 to 24 year olds, on Universal Credit and registered with a work coach, who may find it more challenging to access the world of work. The scheme provides 6 month placements, at 25 hours per week at minimum wage (dependant on age) – although the employer can offer more hours and cover the additional cost. The total grant available from the scheme is £6,500, which pays for the wages and the on-costs such as NI etc.
In addition, there is a further £1,500 payable to the employers for them to provide wrap-around employability support – this can be either in-house or the employer can pay for the support to be delivered. Whichever way, you will need to be able to evidence what the support is and the impact/benefits to the employee. Norfolk Chambers is currently talking to various training providers and others about a suite of support options to make it easier for the employers to provide the wrap-around employability support.
To qualify for a Kickstart placement – the business must be able to demonstrate that this role is additional. The placement is for 6 months, at the end of that period, you can either take that person on, apply for an apprenticeship or replace them with another placement for a further 6 months.
As a Kickstart Scheme Gateway, we can support local businesses to apply for Kickstart funding. The Norfolk Chambers will gather the information needed to submit an online application and if your application is approved, assist you with the process, provide guidance and pass on the relevant payments made by the DWP to you, the employer.
If your business wishes to take part in this scheme, you will need to advise how many placements and the type of placement. To apply, please complete the below application form.
We will submit the cohort to the DWP and notify you of the submission day. The DWP are quoting up to 30 days for a response on the cohort applications.
If your application is successful, a grant funding agreement will be issued and you must return the signed funding agreement and provide a detailed job description for the position. Candidates via the DWP will then apply for the job placements and you can choose who to employ. Please note, you will only obtain funding if you appoint a young person that DWP have introduced.
For more information on what happens following the submission of the cohort to DWP – click here.
If you have any questions on the Kickstart Scheme, or need help completing the application form, please contact:
Onshore wind farms have been in the press recently with mixed messages coming out from government. However the Norfolk Chamber is clear that offshore wind farms and the current and potential investment from Norfolk Chamber member East Anglia Offshore Wind (EAOW) and its contractors is good news for the Norfolk business community. EAOW is a joint venture between Scottish Power Renewables (SPR) and Vattenfall.
To date EAOW have invest £7m in East Anglia and they have made it clear during conversations we have been having with them that they are trying to use local contractors where possible to ensure the region benefits as much as possible from jobs and investment as a result of the scheme. With support from Brandon Lewis MP I have written to John Hayes to ask for a meeting with him in Westminster, and have already organised a lunch with him and industry leaders in May 2013 after his keynote speech at our Sustainability 2013 conference on 9 May 2013 at John Innes, Norwich.
Ann Stewart economic cabinet members Norfolk County Council and I met up with Andy Paine EAOW programme director in Barrrow in Furness in September prior to visiting Vattenfall’s latest offshore wind farm Ormonde. Andy is clear that with the help and support of local contractors East Anglia Offshore Wind is making strong progress and is on schedule to lodge their first application for consent this year. Further opportunities will become available as the wind farm progresses through its consenting, construction and operations phases.
EAOW has already placed a number of contracts with companies in the region and that over the last two years, as part of plans to build one of the largest offshore wind farms in the world; it estimates it has helped support almost 170 jobs across East Anglia through its investments.
These include Chamber member Gardline marine services, marine researcher Centre for Environment, Fisheries & Aquaculture Science (Cefas), fisheries consultants Brown and May, online consultation experts Consense, consultants Eastern Edge and land agents Freedom Group who are all working on East Anglia ONE, the first phase of the East Anglia Zone
There is still work for Norfolk members to do however to ensure that investment comes to this area and not further up the east coast. As mentioned earlier Ann Stewart Economic Cabinet member for Norfolk County Council and I spent time with Andy Paine and his team including Vattenfall’s President and CEO Oystein Loseth celebrating the official opening of Vattenfall’s newest 30 turbine Offshore Wind Farm Osmonde just off Bury in Furness in September 2012. My pictures tell their own tale!
Until I physically visited the Osborne Wind farm I had found it is quite difficult to understand the size of these turbines but seeing is believing. Each jacket foundations is 45 metres high and weights approximately 500 tonnes or putting it another way each individual jacket will weigh as much as 70 African elephants and if all thirty jackets were stacked end-to-end they would be 13 times higher than the Forth Rail Bridge! The Osmonde turbines cover an area of 8.7km2 and will meet the needs of more than 100,000 UK households so the development being planned by EAOW to power over five million homes is truly amazing
The four hour boat trip out to the Ormonde Windfarm with high winds, rain and significant swell convinced me that I am not looking for at a career change… but it did convince me that the potential for this region is vast. Norfolk and Suffolk Chambers are having regular meetings with EAOW and will feedback supply chain opportunities to our members as and when they become clear. In addition we will continue to lobby government so that they fully understand the importance of offshore wind farms to the UK economy and start to give some certainty to the industry.
The weather – and its effects on counties, towns and cities across England and Wales – has been dominant this week.
In the weeks to come, and as the initial effects of the flooding begin to fade from the scene, the Norfolk Chamber will be advocating for:
A fair deal from insurers – with swift compensation for affected businesses, and clarity on future cover and costs. The Association of British Insurers has set out customer commitments on flooding that we will be watching carefully.
Help for affected companies – including proposals for zero-interest or low-cost loans to help companies rebuild or relocate
Action on transport resilience – with short-term action to ensure roads and railways are open, and longer-term action to ensure networks can withstand future weather events
Better coordination – with the police, local authorities, and key agencies listening to the needs of businesses and acting accordingly.
Ministers have also asked for our help to explain how government is helping businesses. At the request of Number 10, you can find out more about the government’s relief efforts here.
Thanks in part to our representations, the Prime Minister has already announced 100% business rate relief for affected businesses, and three months’ extra time to pay on VAT, PAYE, and Corporation Tax. It’s vital for companies to call HMRC’s hotline to set up these arrangements.
With luck, the severe weather that has affected us in recent weeks will soon pass. Yet we know that the recovery will take time, and will stay on the case. If you’d like to highlight specific issues tied to recent weather events, please do get in touch cw@norfolkchamber.co.uk.
Take a look at guidance for UK businesses from the Department of Business, Energy and Industrial Strategy (BEIS) which sets out the details and eligibility criteria for two funding schemes:
(This was updated yesterday and applies only to England)
VAT Deferral
Last week the Chancellor of the Exchequer announced that there will be a deferral of VAT due to be paid between 20 March 2020 until 30 June 2020 (see link below).
This essentially means that businesses will automatically qualify to defer payment of the VAT due on their VAT returns for the VAT periods ending February, March or April 2020 until 31/3/2021, although VAT refunds and reclaims will be paid by HMRC as usual.
‘Look at Norfolk. See Success’ is the message we have conveyed in 2014. It’s time to celebrate, and build on, our increased visibility.
The end of a year is inevitably a time for reflection on both what’s happened in the previous twelve months, and what’s planned or hoped for in the next. It’s seldom been more appropriate for Norfolk to consider those issues than right now, as we look towards 2015.
This year saw the county become more visible on the political agenda. The Norfolk Chamber of Commerce was influential in securing audiences with key politicians, at national level, and giving the region the opportunity to have its business voice heard. Chukka Umunna, George Osborne, Vince Cable and David Cameron all came here at the Chamber’s direct invitation, and their primary reason for doing so was to hear what our members have to say, and see what we have to offer. Note the letter below of thanks from David Cameron. Just as importantly it was an opportunity to inform them what we need to realise the county’s demonstrable potential.
It’s potential that will be made deliverable with better infrastructure. Five years ago the A47 and A11 struggled to get on to the government’s agenda. Now they know that the A11 is vital for the growth of the local economy, and improvements to it could deliver over £600 million in economic benefits. What’s more, the work on the A11 is complete and the cones will disappear tomorrow.
Norfolk Chamber members from start-ups to large scale organisations, together with the rest of the business community, the LEPs and our MPs have been very successful in highlighting the business case for improvements to the A47. The message was that improvements along this route will open up opportunities for Norfolk businesses to deliver more economic growth, housing and jobs for our county. The result of our being seen and heard is that the Prime Minister has pledged that the Government will commit £300million for work along the A47 route but we do need to continue to lobby for the dualling of the Acle Straight and the all-important Dereham, Swaffham, King’s Lynn corridor. We’ve shown that we’re on the road to success and we need to build on this success.
The rail links are as vital as the roads, and again the Norfolk Chamber business community has been successful in bringing its needs into focus. Improvements put forward by the Great Eastern Main Line Campaign will boost our ambition to be a mobile and accessible economy. Our voices were heard and, follliwng the commitment to a rail Taskforce by the chancellor at a Chamber event last November, in this year’s Autumn Statement we have a commitment from Government to ensure that ‘Norwich in 90’ becomes a reality. The signals are set at go.
The poor strength of of our mobile and broadband signals is firmly on the agenda going forward. The Chamber actively engaging members in surveys, and gathering opinion to inform our dialogue with Government has allowed us to, collectively, make it known that it’s essential for every business in our region to be digitally enabled beyond the minimum on offer. Superfast broadband should actually mean superfast and not what is mainly on offer..
Feedback clearly shows that accessing skilled staff is considered a key concern, and restricts growth. With greater connectivity, and innovative technology expanding the economy comes the need for additional employment and the challenge for businesses to find people of all ages with the right skills. There has been a great step forward with the development of apprenticeships but the business links with schools still has a long way to go to ensure that our young people understand the world of work and which careers are open to them. Westminster must understand of our needs and help us to encourage school to work closer with business.
Central to all of this increased visibility for Norfolk has been the business voice. Working with our members, our MPs, the educational establishment, businesses and our partners we have made 2014 a vital and firm rung in the ladder to our success as a region. We have proved that the business voice counts. Government has heard us. They’ve seen that looking at Norfolk means seeing success. And we can and must celebrate that. Please ensure that you do book onto our next MPs event to ensure we get a really loud Norfolk business voice on the 6 February, 2015.
To climb to the next rung is the work for 2015. We’ve shown what we can offer. We’ve successfully made our case for the tools we need to deliver it. We must now, with the same collective and cohesive determination, ensure that the promises are kept, and that we get on with the job and build on what has been put on the table.
Now that we have a focus, and are clearly in focus, we can be sure that when commerce and government look at Norfolk, they see success!
As the Coronavirus continues to impact the day-to-day operations of businesses across our region, Norfolk Chambers stand ready to support you. Working with the British Chambers of Commerce, we need to hear from you about how your business is coping.
The results from last week’s Tracker have now been published, but given the rapid pace of developments, we now need to understand the immediate short terms impacts, as well as some of the more medium to long term impacts on your business. We are in constant contact with the UK Government and Bank of England as business support packages have been developed.
In this 2-3 minute poll: – Covid-19 Business Tracker – please tell us the immediate business conditions you are facing and whether your business is aware of or has used the recently announced support packages from government. Your input is essential to our work on behalf of your business. We intend to seek your views over the next few weeks to track progress. As a business leader, your views have never been more important.
Norfolk Chambers is supporting the Norfolk business community – keeping you up to date and working hard to get further clarity on the various business support options. We will continue to listen to you and ensure that your voice is heard across both the region and nationally.
Last week was all about us ensuring that the government’s key messages and their rapidly evolving support schemes were clearly visible to the Norfolk business community. Our remit this week is to ensure that the support schemes available are operating in the way they are meant to and that the necessary support is getting through to those businesses who need it.
The impact of COVID-19 means that the current times are both challenging and unprecedented. Many businesses are having to operate in radically new ways, facing challenges that they just did not anticipate and many are also trying to make a huge difference in the fight against the virus.
We want to ensure that Norfolk Chambers supports the business community in the most effective and useful ways and have designed a brief poll to help us to understand how best to help. Make sure your voice is heard and listened to – take the poll now.
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Charities must be run as businesses in order to survive in today’s highly competitive commercial world. The good will of sponsors, donors and volunteers that kept them going in years gone by just isn’t enough today, and balance sheets, cash flows and business plans are as important to small charities as they are to big corporations.
I’ve gained a real insight into the pressures and challenges that charities face as chairman of the board of trustees at Great Yarmouth’s amazing Centre 81. You’ll have seen their fleet of mini buses buzzing about the town and will probably have bumped into members enjoying themselves at the bowling alley, theatre or pub.
Formed more than 30 years ago and based in Tar Works Road, Centre 81 has two principal functions. It provides a skills and activities centre for more than 70 members with disabilities that vary in severity and complexity. Although they can socialise at the centre and enjoy activities like painting, cooking and IT, many of them get out and about to go sailing, visit restaurants and hit the shops, transported by our fully-accessible minibuses.
Those vehicles also provide a door-to-door community transport service for more than 700 local people who are disabled, elderly or don’t have access to other forms of public transport. It’s a lifeline that allows them to get to the supermarket or doctor, and to enjoy social activities like visiting friends or going to the cinema.
It’s a great charity, and a pretty complex business. Income is generated from commissioning agencies, membership fees, fares, sponsorship, donations and legacies, while costs include staff salaries, buying and servicing vehicles, and maintaining a set of old and somewhat dilapidated buildings.
Like all good businesses, Centre 81 has a plan. And quite an ambitious plan at that.
It has outgrown its present site and is looking to move to a new location that will enable it to help a greater number of disabled people to get more out of life. We’re looking to not only expand the skills and activities centre but provide a whole new range of services for Great Yarmouth, including supported living accommodation for disabled people and fully-accessible holiday units for people with disabilities and their carers.
We are currently looking at all the options for developing Centre 81’s activities, including opportunities for relocating to a larger site and the funding that will help us create a landmark project that will not only enhance the lives of disabled people living in our borough but the entire community.
Providing fully-accessible facilities doesn’t just mean installing wider doors for wheelchairs. Centre 81’s aim is to develop a centre that can be used by everyone in the borough – other charities, community groups, able-bodied and people with disabilities. It will attract new members and, perhaps more importantly from the local economy’s point of view, it will create more full-time and part-time jobs.
It’s a big challenge, but businesses thrive on challenges. And so do charities like Centre 81.
Last week’s Budget stated that ‘the UK is one of the most open economies in the world, with significant trade and financial links with other countries’. Whilst a weak European economy has led to subdued export growth to EU countries, other countries are picking up the mantle with a 24% increase in export volume to non-EU countries since 2010. This performance is reflected in the fact that the 3 month trade deficit (to Jan 15) was the lowest since October 2000 (at £4.4bn)
The Office of Budget Responsibility is upbeat too, forecasting exports growth of 3.9% in 2015, 4.0% in 2016 and growth of over 4.0% over the remainder of the forecast.
Turning to the investment for exporters, the Chancellor also revealed:
A £3.5m in 2015-16 for series of trade missions focused on the North A doubling of funding to £7.5M in 2015-16 for UKTI activities in China A £1.5m in 2015-16 for International Festival for Business in Liverpool, including attracting Foreign Direct Investment
It is good to see more resource put in place to boost Britain’s burgeoning exports into the Chinese market, and to fund additional trade missions, which help many companies get into markets for the first time. However additional resource is needed to support the smaller businesses looking to start trading internationally for the first time or looking to enter new markets.
The support the Government is giving Overseas Chambers as part of the Overseas Business Network Initiative (OBNI) has been very welcome but there is still more that needs to be done. Norfolk Chamber is making valuable links with many of these new markets in order to supports its membership take that first step into international trade or new markets with confidence .
Coronavirus Job Retention Scheme has been extended by one month to reflect continuing social distancing measures – a move that will allow firms from across UK to continue to protect millions of jobs
The government’s furlough scheme that is keeping millions of people in jobs will be extended for a further month, the Chancellor confirmed today.
Following on from yesterday’s announcement to keep the social distancing measures in place, Rishi Sunak said the Coronavirus Job Retention Scheme (CJRS) would now be open until the end of June – providing businesses with the certainty they need.
The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the 1 March to the end of May. However, the Chancellor said he would keep the scheme under review and extend it if necessary.
Chancellor of the Exchequer, Rishi Sunak, said:
“We’ve taken unprecedented action to support jobs and businesses through this period of uncertainty, including the UK-wide Job Retention Scheme. With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.
“It is vital for people’s livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.
The government has taken unprecedented action to help the economy and society bridge a period of national emergency so that as many people as possible can get back to work as the situation improves.”
Commenting on the announcement, Nova Fairbank, Head of Policy for Norfolk Chambers said:
“Norfolk businesses will be pleased that the Chancellor has responded to their calls for the Job Retention Scheme to be extended. This common sense move will provide many with the support they need to protect livelihoods as lockdown continues.
“With applications for the scheme opening on Monday, and April’s payday fast approaching, it is essential that payments are made as soon as possible. Any delay would exacerbate the cash crisis many firms are facing and could threaten jobs and businesses.”