Julian Cox comments on today's Budget announcement - Furlough, business rate holidays and loan schemes
Julian Cox, employment law specialist and partner at law firm BLM, said: “Announcement of an extension to the furlough scheme, extension of a business rates holidays and loan schemes will be welcome news for many, particularly those hardest hit by the pandemic in hospitality and retail. However, these plans are very much dependent on successful rollout of the government’s roadmap out of lockdown, and even then, support may well be required beyond September, when much of this support is now due to wrap up.
"The 'small' 10% contribution towards the scheme, beginning in July and eventually rising to 20%, may still be too high for businesses already on the edge as a resulted of a severely restricted ability to trade due to lockdown constraints, even taking into the account the restart grants announced and continued VAT reductions. Any departure from the planned re opening date for indoor hospitality, will also be a huge concern for a sector that has been through so much already as a result of the continuing pandemic."
Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to clients of BLM. Specialist legal advice should always be sought in any particular case.