Please note: this article was correct at the time of writing and publication. However, please bear in mind that advice and guidance may change at short notice due to the nature of this unprecedented situation. We are doing our utmost to provide up to date information, as and when it happens.
For the latest, please visit www.ncass.org.uk/coronavirus
Over £330billion of loans & grants have been announced.
Chancellor of the Exchequer, Rishi Sunak has pledged to do “whatever it takes” to protect the UK economy from the coronavirus and has announced an unprecedented package of government backed loans & grants worth over £330billion, with more to come.
Here’s what has been announced so far:
“Any business who needs to access cash to pay rent, suppliers, salaries or purchase stock will be able to access a government backed loan or credit on attractive terms.”
What has been done: The Government has increased the Business Interruption Loan scheme to allow loans of up to £5million with no interest due for the first 6 months.
What this means: In theory anyone who needs to get a loan to help their business should be able to access a government backed loan.
When will this be available? It should be available from 23rd March.
How do I access this? Speak to your bank.
What has been done: Business rates will be abolished for ALL businesses in the hospitality industry regardless of their Ratable Value for 12 months
What that means: Any Hospitality business will not pay any business rates, previously this was just for businesses with a Rateable Value of less that £51,000
How do I access this? Speak to your Local Authority.
What has been done:
Cash grants for retail, leisure & hospitality businesses of up to £25,000 have been implemented.
The previously announced grant of £3,000 for small businesses who qualify for small business rate relief has been increased to £10,000
What that means: If you are a hospitality business with a premises, e.g. a shop, café, pub, restaurant, takeaway you will be eligible for a cash grant. If you have a property that is not used for hospitality – i.e. a production kitchen then you will get a cash grant of £10,000.
It appears that this is only applicable to those with a premises, although this hasn’t been officially confirmed as yet.
How do I access this? That is not yet clear however it is expected that this will be done via your Local Authority
What has been done: What Mortgage lenders will offer a 3-month mortgage payment holiday
What this means: You should be able to get a payment holiday from your mortgage for 3 months if you are concerned about being able to pay your rent.
How do I access this? Speak to your mortgage provider about it.
What has been done: Planning rules will be relaxed so pubs and restaurants can operate as hot food takeaways during the coronavirus outbreak.
What this means: If you run a pub or restaurant and want to be able to offer takeaways you will be able to do that for up to 12 months.
How do I access this? You won’t need to do anything. However, make sure you update your insurance to cover you for this.
NCASS are working hard to get solutions for members to be able to operate a takeaway / delivery service
The government has confirmed that it is looking at more schemes and initiatives to try to support businesses to help pay their staff. They have committed to announcing more details in the coming days
Business Interruption Insurance
The Government confirmed that if you have cover for this then you will be able to claim for this however, they acknowledged that many businesses don’t have this cover.
To discuss any of the above points or if you have any questions, please contact your NCASS Account Manager on 0300 124 6866 Monday -Thursday 9-5:30pm and Friday 9am – 5pm.