Home Business News Yet another extension suggests the Chancellor has no clear plan for the UK economy

Yet another extension suggests the Chancellor has no clear plan for the UK economy

by Mark Fitt Political Journalist
5th Nov 20 2:58 pm

It is  staggering that the Government is putting through another extension only a matter of days after announcing the November extension, say leading tax and advisory firm Blick Rothenberg

Richard Churchill a business advisory partner at the firm said: “Continual extension and modification does little to suggest the Chancellor has a clear plan for the UK economy.”  

He added: “The furlough extension is welcomed and finally the Chancellor is providing some longer-term measures in respect of England’s 4-week lockdown. However, it would have made more sense to extend the furlough scheme for 3 months in the first place to give businesses certainty, given the critical winter and festive period.

Richard said: “He should have gone further  and announced that the furlough scheme will be in place until June 2021 or even December 2021. He can of course review and amend the scheme eligibility and assistance on a monthly basis.”

He added: “The extension of the Furlough Scheme has come at a cost for some employers who have been counting on the Job Retention Scheme Bonus. For those businesses that have redesigned their businesses and may not be utilising the furlough scheme going forward but had accounted for the Job Retention Scheme Bonus this is a further change and blow to cashflow they will have to remodel quickly.

“This is yet another example of reactive changes by the Chancellor causing difficulty for UK business. Surely those businesses not accessing the current furlough scheme should still have been eligible for the Job Retention Scheme Bonus.”

Richard said: “The Chancellor provided little assistance to businesses struggling with funding. Whilst the application dates or CBILS and Bounce Back loans have been extended to 31 January many businesses have already exhausted the Bounce Back scheme with its limit of £50,000 in exiting the first lockdown.”

He added: “We are now in a second wave of the virus and businesses will require additional funding to provide working capital to exit this lockdown. The availability and funding limit of these loans need to be reviewed and increased to provide businesses with additional access to finance in order they can fund their businesses out of this second lockdown.”

Richard said: “Once again there was no detail provided on the successor loan scheme announced by the Chancellor in his winter statement some weeks ago and whether this will provide the answers to the funding crisis facing businesses.”

He added: “It would also have been good to hear from the Chancellor his plans for business rates in 2021 as clearly those businesses in the most effected sectors primarily hospitality, leisure and entertainment need further relief in order to be viable.”

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