Tag Archive for Treasury

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Sunak ignores small business pleas for more help to get through lockdown

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Originally written by Timothy Adler on Small Business
Chancellor Rishi Sunak has ignored small business pleas for more taxpayer support to help get them through extended lockdown until July 19.
Small business owners, and especially nightclub operators, face going out of business because of the government pushing back the lifting of lockdown restrictions until end-July. The fear is that government scientists will again point to Covid-19 infection numbers again going in the wrong direction, and Britain remains at the current level of restrictions until spring 2022.
The Treasury has pointed to local authorities still having £1bn at their disposal to help small businesses cover such things as business rates on a case-by-case basis. Other than that, its arms are folded.

From the start of next month, small businesses will have to start contributing to the salaries of furloughed workers. Currently, the government covers 80 per cent of wages of workers in the furlough scheme. Next month that becomes 70 per cent, with employers having to cover an extra 10 per cent
Hospitality, leisure and retail operators will also have to start paying one third of their business rates bill from the start of July, ending more than a year of the bills being waived.
Small businesses

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Hot Business News Today

Sunak ignores small business pleas for more help to get through lockdown

by  •  • 0 Comments

Originally written by Timothy Adler on Small Business
Chancellor Rishi Sunak has ignored small business pleas for more taxpayer support to help get them through extended lockdown until July 19.
Small business owners, and especially nightclub operators, face going out of business because of the government pushing back the lifting of lockdown restrictions until end-July. The fear is that government scientists will again point to Covid-19 infection numbers again going in the wrong direction, and Britain remains at the current level of restrictions until spring 2022.
The Treasury has pointed to local authorities still having £1bn at their disposal to help small businesses cover such things as business rates on a case-by-case basis. Other than that, its arms are folded.

From the start of next month, small businesses will have to start contributing to the salaries of furloughed workers. Currently, the government covers 80 per cent of wages of workers in the furlough scheme. Next month that becomes 70 per cent, with employers having to cover an extra 10 per cent
Hospitality, leisure and retail operators will also have to start paying one third of their business rates bill from the start of July, ending more than a year of the bills being waived.
Small businesses

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Hot Business News Today

Half of small businesses will never repay Bounce Back Loans, warn banks

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Originally written by Timothy Adler on Small Business
Banks are warning that small businesses will never repay up to half of the Bounce Back Loans that have been taken out.
Moreover, when this happens, the Chancellor should prepare for the collapse of hundreds of thousands of small businesses.
Three senior bankers have warned that between 40 per cent and 50 per cent of the 608,000 borrowers who have taken out £18.5bn of Bounce Back Loans could eventually default on the debt.
Although the Government has said it will guarantee 100 per cent of the loans up to £50,000, it is still down to banks to pursue defaulters for the debt.
Executives say it would be logistically impossible to take hundreds and thousands of small, often family-run businesses to court, and that it would be a PR disaster for high street banks.
“Some arrangements will have to be made. A lot of them will be written off or converted into something else,” one bank chairman told the Financial Times. “In most cases the idea of the government taking equity in these companies is unrealistic — they are simply too small. So the question is what’s going to happen to all of these loans?”
RBS calls for bad loan

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Hot Business News Today

What does the latest Treasury stimulus mean for small business?

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Originally written by Timothy Adler on Small Business
Chancellor Rishi Sunak will announce the latest Treasury stimulus for small business later this afternoon, as millions of small businesses face shutdown for four months.
Yesterday, prime minister Boris Johnson advised everybody not to venture out of their homes apart from non-essential journeys such as work and food shopping – leaving millions of small businesses in limbo, faced with either having to make staff redundant and yet unable to claim on business insurance because the government, unlike as in Italy and Spain, has not made the coronavirus lockdown official.
The British Beer and Pub Association warned that “thousands of pubs and hundreds of thousands of jobs will be lost in the very short term” unless the government bails it out.
Whatever Sunak announces in his Treasury small business stimulus package will build on the £30bn spending package he announced in last Wednesday’s Budget but now seen as insubstantial given the onslaught of the crisis.
What can Rishi Sunak do?

A People’s Quantative Easing Former Goldman Sachs Asset Management chairman and government minister Jim O’Neill has called for a “People’s Quantative Easing” – basically, injecting money into people’s bank accounts.
Suspend business rates entirely This would cost the Treasury £31.5bn or

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