Originally written by Rory Bennett on Small Business
One in five Britons have either started a new business since lockdown or plan to start one by the beginning of 2021.
According to Direct Line, the most popular sectors to have started a new business are IT and web design (21 per cent), engineering (14 per cent), building/property (8 per cent), education/ training (8 per cent), retail/wholesale (6 per cent) and business/management consultancy (4 per cent).
The surge to start a new business comes as people have come off furlough since lockdown, often to find themselves unemployed.
The Bank of England estimates that unemployment will spike at 2.5m by the end of this year, with the unemployment rate almost doubling to 7.5 per cent. Over 730,000 people have become unemployed since March according to Office of National Statistics.
Research suggests that young people, aged between 18-34, are hardest hit by the pandemic, but 48 per cent have become or intend to be entrepreneurs.
Of the kitchen-table entrepreneurs who have not yet started their venture, 19 per cent hope to have it up and running by the beginning of 2021.
The survey is supported by Companies House data, which showed that more than three times the average number of
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Hot Business News Today
Jobs Support Scheme what it means for your small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: The government will pay one-third of the wages of small business workers on reduced hours through its new Jobs Support Scheme.
Rishi Sunak announced the six-month Jobs Support Scheme to follow on from the coronavirus furlough scheme and begins on November 1.
Employees must work at least one third of their normal hours and be paid as normal. The government will then top up, covering one-third of pay lost by reducing hours, the business owner will cover another third and the employee will take a 33 per cent pay cut.
The level of government grant will be calculated based on an employee’s usual salary, capped at £697.92 per month.
>See also: Rishi Sunak eyes subsidising wages of part-time workers
Only full-time staff will be eligible for the Jobs Support Scheme.
The Jobs Support Scheme is designed to support full-time staff where there is not enough demand to justify them working a five-day week.
Mr Sunak told MPs he would strike the finely judged balance between managing the virus and protecting “the jobs and livelihoods” of people across the country.
The chancellor previously made clear he did not want to extend the £39bn furlough scheme to keep people in so-called “zombie
Hot Business News Today
Covid expected to cost small businesses £69bn
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The effects of COVID-19 could cost businesses £69bn, according to new figures from Simply Business.
That’s an average of £11,799 per business, made up of lost work, earnings and total revenue.
A worrying 67 per cent of businesses said they had to stop trading at some point in the past six months. There could be more to follow, as 14 per cent said that they’re likely to close in the next one to three months, 12 per cent believed they’ll be closed within the next three to six months and 11 per cent within six months to a year.
Small businesses fear a second lockdown with one in five (17 per cent) saying that they wouldn’t survive.
A large proportion of respondents (48 per cent) believed that it will take at least 12 months to recover the money lost due to COVID-19. A significant 12 per cent thought that it would take two to three years.
However, it’s not an entirely gloomy picture. Despite lockdown’s challenges, 85 per cent plan to remain self-employed and ten per cent plan to start businesses. Others have adopted new technologies – 47 per cent are using messaging apps, 33 per cent are
Hot Business News Today
One in 5 Brits want to go into business for themselves since lockdown
by Rory Bennett • • 0 Comments
Originally written by Rory Bennett on Small Business
One in five Britons have either started a new business since lockdown or plan to start one by the beginning of 2021.
According to Direct Line, the most popular sectors to have started a new business are IT and web design (21 per cent), engineering (14 per cent), building/property (8 per cent), education/ training (8 per cent), retail/wholesale (6 per cent) and business/management consultancy (4 per cent).
The surge to start a new business comes as people have come off furlough since lockdown, often to find themselves unemployed.
The Bank of England estimates that unemployment will spike at 2.5m by the end of this year, with the unemployment rate almost doubling to 7.5 per cent. Over 730,000 people have become unemployed since March according to Office of National Statistics.
Research suggests that young people, aged between 18-34, are hardest hit by the pandemic, but 48 per cent have become or intend to be entrepreneurs.
Of the kitchen-table entrepreneurs who have not yet started their venture, 19 per cent hope to have it up and running by the beginning of 2021.
The survey is supported by Companies House data, which showed that more than three times the average number of
Hot Business News Today
What new Covid restrictions mean for small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Boris Johnson outlined the latest set of Covid restrictions this afternoon, significantly tightening laws for small business in England ahead of a second wave.
The latest set of Covid restrictions, which will become law, threaten any small business that does not comply with fines. Shop assistants in retailers could, for example, be fined £200 for not wearing a facemask behind the counter.
Mr Johnson warned that the new regulations, which underpin the rule of six – preventing any more than six people congregating – will be in place for the next six months.
>See also: Rishi Sunak to extend government coronavirus business support
The new clampdown will be a blow to pubs and restaurants, which from Thursday, September 24 have to shut at 10pm. That means close completely, not last orders.
All pubs, bars and restaurants must operate table service only and must close at 10pm
Staff and customers in pubs, bars and other indoor hospitality must wear facemasks when not eating and drinking
Retail staff and all users of taxis and minicabs must wear face coverings
Covid-secure guidelines for retail, leisure, tourism and other sectors will become law. Businesses will be fined and forced to close if they breach the
Hot Business News Today
Rishi Sunak eyes subsidising wages of part-time workers
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Rishi Sunak is eyeing replacing furlough with subsidising wages of workers who work on a part-time basis.
The idea is one of several being considered by the chancellor and his Treasury, according to the Financial Times.
The attraction of subsidising wages is that it would support those who are in work but with not enough demand to keep them on five days a week.
>See also: Boris must ‘act now’ to save businesses from going under
The scheme would be aimed at businesses who can afford to employ staff for at least 50 per cent of their normal hours.
The Confederation of British Industry (CBI) and the Trades Union Congress (TUC) have both proposed similar schemes to replace furlough when it ends next month.
The CBI-style wage subsidy scheme would see small businesses paying employees in full for the days they work; the government would pay one third of the wages for those days the employee is off work, the employer would pay one third, and the employee would take a one-third pay cut on the days they are off work. That way, all three share the pain.
The other attraction is that it would be a lot cheaper than
Hot Business News Today
Covid expected to cost small businesses £69bn
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The effects of COVID-19 could cost businesses £69bn, according to new figures from Simply Business.
That’s an average of £11,799 per business, made up of lost work, earnings and total revenue.
A worrying 67 per cent of businesses said they had to stop trading at some point in the past six months. There could be more to follow, as 14 per cent said that they’re likely to close in the next one to three months, 12 per cent believed they’ll be closed within the next three to six months and 11 per cent within six months to a year.
Small businesses fear a second lockdown with one in five (17 per cent) saying that they wouldn’t survive.
A large proportion of respondents (48 per cent) believed that it will take at least 12 months to recover the money lost due to COVID-19. A significant 12 per cent thought that it would take two to three years.
However, it’s not an entirely gloomy picture. Despite lockdown’s challenges, 85 per cent plan to remain self-employed and ten per cent plan to start businesses. Others have adopted new technologies – 47 per cent are using messaging apps, 33 per cent are
Hot Business News Today
What new Covid restrictions mean for small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Boris Johnson outlined the latest set of Covid restrictions this afternoon, significantly tightening laws for small business in England ahead of a second wave.
The latest set of Covid restrictions, which will become law, threaten any small business that does not comply with fines. Shop assistants in retailers could, for example, be fined £200 for not wearing a facemask behind the counter.
Mr Johnson warned that the new regulations, which underpin the rule of six – preventing any more than six people congregating – will be in place for the next six months.
>See also: Rishi Sunak to extend government coronavirus business support
The new clampdown will be a blow to pubs and restaurants, which from Thursday, September 24 have to shut at 10pm. That means close completely, not last orders.
All pubs, bars and restaurants must operate table service only and must close at 10pm
Staff and customers in pubs, bars and other indoor hospitality must wear facemasks when not eating and drinking
Retail staff and all users of taxis and minicabs must wear face coverings
Covid-secure guidelines for retail, leisure, tourism and other sectors will become law. Businesses will be fined and forced to close if they breach the
Hot Business News Today
Eviction ban for commercial tenants to be extended until end of the year
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The government is preparing to extend the eviction ban on commercial properties until the end of the year, reports the Financial Times.
Officials are looking at how to extend the ban from its current cut-off date of September 30th. The move comes as the Government faces increasing pressure to help businesses who are still struggling with the effects of COVID-19.
The announcement could be coming as early as this week, according to one official.
Leading figures in hospitality and retail warn that retailers and restaurants could be at risk of closure come the end of September with the clashing of the eviction and the next quarter’s rent bill.
UKHospitality has warned that a failure to act urgently to rent crisis will result in a ‘bloodbath’, with hospitality businesses failing and subsequent job losses.
Over the past weekend, leading restaurant groups including Burger King and Itsu wrote to Boris Johnson wrote to Boris Johnson to ask him for a targeted extension of the eviction ban, citing a ‘critical risk’ for restaurants from October 1st.
Retailers such as New Look have also called on landlords for rent reductions, with some forcing cuts through company voluntary arrangements.
Landlords say that eviction bans risk
Hot Business News Today
Boris must ‘act now’ to save businesses from going under
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The British Chambers of Commerce has written to Boris Johnson urging him to “act now” to avoid “significant levels” of businesses going under.
Baroness Ruby McGregor-Smith, president of the BCC, said the government needed to provide more support for businesses suffering local restrictions alongside a comprehensive stimulus package, including reducing national insurance costs.
Baroness McGregor-Smith wrote: “If the government wishes to avoid mass unemployment, significant levels of business failure, and long-term economic scarring in our communities, we urge you and your colleagues to act now.”
See also: 150 UK small business grants to apply for right now
The government has extended some Covid-19 support measures, such as awarding grants worth £1,000 to small businesses that find themselves in lockdown, but it has so far resisted calls to prolong the furlough scheme or to extend the availability of state-backed coronavirus business interruption loans beyond the autumn.
The BCC’s full suggested fiscal stimulus package includes:
Reducing the cost of employment by expanding the National Insurance Employment Allowance for 18 months from £4,000 to £20,000 and raising the threshold for employers’ National Insurance contributions from £8,788 to £12,500
Rates relief to all of the hardest hit sectors and their immediate supply chains –