BUDGET EMPLOYMENT SUPPORT MEASURES

The Chancellor set outs the Budget 2021, outlining a series of measures to support businesses impacted by the COVID-19 pandemic. We’ve summarised the key points you need to know.

Coronavirus Job Retention Scheme (CJRS)

The furlough scheme has been extended to the end of September 2021. The scheme’s terms will remain the same for both employees and employers till 30 June. From 1 July, employers will be required to contribute 10% towards staff wages. This will increase to 20% in August and September respectively.

A breakdown of the changes to the furlough scheme is available on the government website.

Self-Employed Income Support Scheme (SEISS)

Fourth grant (February 2021 – April 2021)

  1. The Chancellor confirmed that the fourth grant will cover 80% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits up to £7,500 in total.

Fifth grant (May 2021 – September 2021)

A fifth and final grant will be provided under the scheme.

The value of the grant will depend on the percentage of turnover reduction in the year April 2020 to April 2021:

  1. For self-employed with a turnover reduction of 30% or more, the grant will cover 80% of 3 months’ average trading profits, capped at £7,500
  2. For self-employed with a turnover reduction of less than 30%, the grant will cover 30% of 3 months’ average trading profits, capped at £2,850

Individuals who were newly self-employed in 2019-2020 and who haven’t been eligible for support under the scheme so far, will now be able to claim the fourth and fifth grants provided they submitted their 2019-2020

Self-Assessment tax return by 2 March.

More information on the fourth and fifth SEISS grants is available on the government website.

Test and Trace Support Payment Scheme

The scheme which was created to support individuals on lower incomes who have been instructed to self-isolate and are unable to work from home will be extended until the summer.

Wages

From April 2021, the National Minimum Wage will be increased to £8.91 per hour

Apprenticeships

The apprenticeship hiring incentive will be extended to 30 September 2021 and payments will be doubled providing £3,000 per apprentice hire of any age to encourage the creation of new apprenticeships.

Help to Grow Scheme
  1. This new scheme will support SMEs providing opportunities to access management training and develop the digital skills needed to recover and grow. In addition, it will offer SMEs a voucher to cover up to half the costs of approved digital software (up to a max of £5,000).
  2. For more information on the Help to Grow programme and to register your interest visit the government’s dedicated page, here.

BUSINESS GUIDE TO BUDGET 2021 ANNOUNCED

The Chancellor set outs the Budget 2021, outlining a series of measures to support businesses impacted by the COVID-19 pandemic. We’ve summarised the key points you need to know.

Restart Grant Scheme

With the previous grant schemes ending on 31 March, the government will launch Restart Grants to help businesses reopen following the national lockdown. The value of these one-off cash grants will depend on the type of business.

  1. Non-essential retail will be eligible to receive up to £6,000 per premises
  2. Hospitality and leisure businesses including personal care and gyms will be eligible to receive up to £18,000 per premises

Local Authorities will also receive an additional £425 million of discretionary business grant funding to distribute.

More information on this scheme including details relating to the eligibility for this grant will be announced in due course.

Recovery Loan Scheme – Opens on 6 April

The new loan scheme will replace the existing Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLs) which end on 31 March. It will enable businesses of all sizes to access term loans, overdrafts, invoice finance and asset finance up to £10 million with the government providing an 80% guarantee to the accredited lenders.

More information on the scheme is available through the government website.

Future Fund: Breakthrough (launching early summer of 2021)

This new £375 million scheme will encourage private investors to co-invest with government in the most innovative, R&D-intensive businesses (e.g. those working in life sciences, quantum computing, or cleantech) that are aiming to raise at least £20 million of funding.

To be considered for the scheme you must be a UK based company with significant UK operations.

Further information on the Fund has been published on the British Business Bank website.

Support for Arts, Culture and Sports Venues

A £700 million package of support was announced to boost the arts, culture and sports sectors.

The Film & TV Production Restart Scheme will be extended to 31 December 2021.

Community Ownership Fund – First bidding round will open by June 2021

This new £150 million scheme will enable community groups to bid for up to £250,000 matched-funding to help them buy or take over local community assets (sports clubs, sporting and leisure facilities, cinemas and theatres, music venues, museums, galleries, parks, pubs, post office buildings, and shops) which are at risk of being lost, to run as community-owned businesses.

More information on the scheme has been published on the government website.

NEW BUSINESS ENTERPRISE CENTRE OPENS IN SWADLINCOTE

The Chairman of South Derbyshire District Council, Councillor David Muller, officially opened the IN Work Hub, IN Enterprise Hub & Café in West Street, Swadlincote last Thursday 3 September 2020. Councillor Muller was joined by Frank McArdle, Chief Executive of South Derbyshire District Council, Councillors from South Derbyshire District Council and Derbyshire County Council as well as senior representatives from the East Midlands Chamber of Commerce, Burton & South Derbyshire College, The National Forest Company and a variety of local businesses who played a part in bringing the vison of the IN Enterprise Hub alive. 

The IN Work Hub and IN Enterprise Hub with its Café is the brainchild of owners, Nicola Lees and Ingrid van der Weide. The IN Enterprise Hub provides support for individuals looking to start their own business and opportunities for existing businesses looking to grow through a variety of programmes, events and activities. The IN Work Hub offers a place for people to work, to meet clients or to hold their own events in the bookable meeting spaces. 

Following a career in economic development across various local authorities including South Derbyshire District Council, Nicola, and Ingrid, herself a small business owner, both recognised a need for more support locally, set up the IN Enterprise Hub & Café to complement and increase the provision of support. Both Nicola and Ingrid are passionate about helping others to succeed, about seizing opportunities to bring people together to foster stronger partnership which leads to stronger growth. The idea for the IN Enterprise Hub brings together all of the ideas they have had collectively over a number of years and are now in a position to help deliver. 

Already, the IN Work Hub and IN Enterprise Hub is proving to be meeting local need with a variety of home workers making use of the individual work hubs, a number of businesses using the opportunity to meet with clients, bookings to hold events including a two day Mental Health First Aid at Work course as well as its first funded support programme, the ‘Get IN Work Club’, which will help people get back to work through a series of practical workshop sessions. 

Other programmes and events include a monthly drop-in Blogging Hour, a monthly Start IN Business hour, IN Business Networking events, INCubation Programme and a Swadlincote Town Centre Business Hub. 

During his opening comments, Councillor David Muller remarked ‘This enterprise is a much-needed resource in South Derbyshire and, in particular, Swadlincote. With the current climate there is no doubt there will be plenty of people looking for work or exploring opportunities to open their own businesses. Having an enterprise hub to explore ideas, gather information and meet other like-minded individuals is fantastic. We wish Nicola and Ingrid well in their endeavours.”

Opening hours are Monday to Friday from 8.30am – 5.30pm. Individuals and businesses are welcome to drop in to see the Hub in action or can visit the website. The workspaces are available on a pay as you go basis or through 5 and 10 day plans while the meeting room is available to hire on a daily, half day and two-hourly rate. Memberships start from £30 per month. 

Notes to the editor
  1. The IN Work Hub and IN Enterprise Hub is located at 12-14 West Street, Swadlincote DE11 9DE
  2. The IN Enterprise Hub, a not for profit company, limited by guarantee is funded by membership subscriptions, sponsorship, grant funding and partnership.  
  3. Photo credits: Lee Gallagher, leegallagher98@gmail.com