The government has launched a Coronavirus Business Support Hub to help businesses access the support to which they are entitled – https://www.businesssupport.gov.uk/coronavirus-business-support/
Detailed press releases on the latest updates can be viewed here
Commenting on the latest restrictions post lockdown from December 2nd, Miles Beale Chief Executive of the Wine and Spirit Trade Association, said:
“It will come as a relief to some of the hospitality sector – and their suppliers – that we’ll see a partial opening up of business in the run up to Christmas. However, with tougher tier restrictions likely to be in place it will still mean many pubs bars and restaurants will remain closed. It’s sensible that those allowed to open will have curfews extended.
For those businesses who will be forced to stay closed after investing their dwindling resources to ensure they can trade safely, this could sadly be the final nail in the coffin. Tiers two and three will both be more restrictive and reduce business’ chances of survival. It’s that stark.
The Government needs to continue the financial support for hospitality as well as its suppliers – at least the same level - until the pandemic is over.”
The UK has officially entered ‘lockdown 2’ in England. This will run for 28 days and expires as of 00:01 December 2nd. Any further lockdown measures would have to be positively voted through by Parliament. These measures, as was the case last time, place restrictions on movement of people, with the exception of shopping for essential goods and services, exercise and to attend places of worship. Schools, this time, will remain open. The WSTA has confirmed that off-licenses will continue to be able to sell alcohol. Hospitality venues will shut, but will be able to offer takeaway services for alcohol as long as the products are pre-ordered and are not consumed on the premises.
Further support for businesses
This afternoon, the Chancellor announced further support to businesses, including:
1. An extension to the Coronavirus Job Retention Scheme (CJRS, aka Furlough) to the end of March 2021. This means:
- Government will help businesses pay wages up to 80% of normal amount. Employers will remain responsible for National Insurance (NI) and pension contributions.
- The policy will be reviewed in January; depending on circumstances businesses may be asked to make larger contributions to wages depending on the economic situation.
- Employees must be on an employer’s PAYE payroll by 23:59 30th October 2020
2. An increase of up to 80% of average profit up to £7,500 (covering period November to January) of the Self Employed Income Support.
3. An increase of upfront guaranteed funding for devolved administration increased from £14bn to £16bn
Retention incentive bonuses have been taken away and will be reintroduced following review.
Local Authority Support Grants
This is in addition to support previously announced by Government which included the Local Additional Restrictions Support Grant, which provides grants for businesses forced to close in England worth up to £3,000 per month, with £1.1bn being made available to Local Authorities for “one-off payments to enable them to support businesses more broadly”.
The guidance on this has been published. Section 22-23 helpfully states:
“22. Local Authorities can determine how much funding to provide to businesses from the ARG funding provided, and exactly which businesses to target.
23. However, we encourage Local Authorities to develop discretionary grant schemes to help those businesses which – while not legally forced to close – are nonetheless severely impacted by the restrictions put in place to control the spread of Covid-19. This could include – for example – businesses which supply the retail, hospitality, and leisure sectors, or businesses in the events sector.”
We would encourage members in the hospitality supply chain to utilise this guidance where possible when engaging with Local Authorities.
Prime Minister Boris Johnson sets out the next stage of the response to coronavirus which involves a new three-tiered system, based on medium, high and very high alert levels.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said:
“We welcome the fact that hospitality venues forced to close will receive financial support and confirmation that retail will remain open under all scenarios.
But the latest lockdown restrictions will come as a bitter blow to pubs and bars who have worked hard - and invested dwindling resources - to ensure their businesses are safe.
We understand the need to focus efforts where infection risks are the greatest and welcome the Government’s approach to managing this geographically, at a local or regional level, allowing those outside of affected areas to continue to operate.
The support measures announced by the Chancellor last week will have given many businesses facing the prospect of being shut down a much needed lifeline, but we have serious concerns that – once again - those who supply the hospitality sector are being overlooked. They need access to the same levels of support.”
The Chancellor Rushi Sunak announced further flexibility to the furlough scheme.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association said:
“The WSTA welcomes the Chancellor’s announcement which introduces much needed much needed flexibility sooner to the furlough scheme. He has been listening and we are grateful. The scheme has been a lifeline for wine and spirit businesses - especially those who predominantly supply pubs, bars and restaurants - and flexibility is something we and our members have requested.
The scheme has so far been generous and the plan to phase in employer contributions is fair – provided that pubs, bars and restaurants are able to open and operate viably. Unless and until all hospitality businesses are permitted to operate at full capacity, the Government should hold open the prospect of additional support to off-set any restrictions it needs to impose for public health reasons.
The Government must not forget the smaller number of lower profile businesses that supply into high street hospitality. So far, they have not been able to access all existing support that is available to hospitality businesses, even though their sales have also reduced to zero. Current guidance must be amended quickly to clarify that they should also have access to the business rates exemption. If not, I am afraid that there will be business closures and redundancies - and potentially a supply problem for recovering high street hospitality outlets.”
The Prime Minister has announced that parts of the on-trade including pubs, bars and restaurants will be able to re-open from 4 July with social distancing restrictions amended to 2m or 1m with risk mitigation acceptable where 2m is not viable – also known as “1 metre plus”.
The guides are split into sectors including:
- Restaurants, pubs, bars and takeaway services
- Shops and branches
- Factories, plants and warehouses
- Offices and contact centres
Commenting on the announcement of the opening up of the hospitality trade, Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said:
“The opening up of our pubs, bars and restaurants comes as a huge relief to the businesses who were forced to shut down overnight and left in limbo since the start of lockdown. This includes the wine and spirit suppliers who have not been given the same access to business rate holidays and loans as the pubs and restaurants despite the sudden loss of their income.
It is right that opening up comes with some caution in order to protect the public and ensure that we don’t end up with a second spike putting us back to square one. We look forward to seeing the government’s guidance, including the additional mitigation measures for social distancing that is less than 2 metres.
This welcome news does not mean that the hospitality sector and their suppliers are no longer in need of Government support. Recovery from the loss of trade over the last few months will mean that some businesses will not be able to open immediately or fully and others will take years to get themselves back on an even keel.”
The Chancellor Rishi Sunak announced the extension of the Job Retention Scheme. Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said:
“The WSTA is pleased that its call for an extension to the furlough scheme, including more flexibility allowing staff to return part-time, will now happen. The support will continue, in full, until the end of July giving our members much needed breathing space to plan for a way out of lockdown.
It is essential for those in the hospitality sector and their suppliers, who are prevented from re-opening, that they receive the same 80% salary support until the end of October.
We are continuing to push for the government to broaden the definition of hospitality to ensure the suppliers to our pubs and restaurants don’t slip through the net and end up facing closure.”
Members will be working hard to keep staff safe in warehouse and pick and pack situations. Some of these areas will be adapted from their normal purpose and all of them will demand new methods of working. We are grateful for the assistance we have received in developing a template of a social distancing protocol for warehouse staff. We hope members will find it helpful when considering the measures they need to introduce and how to express those to their teams.
If any members have any other examples of good working practices that they would like to share, we would be happy to disseminate them.
You can view the Social Distancing in Warehouses template here: Template
HM Revenue and Customs (HMRC) has been issuing a regular Stakeholder Digest outlining the various packages of support and other easements available to help people during the coronavirus outbreak.
The latest update includes full details of where businesses can find the right support, advice and information to help with the impact of coronavirus - HMRC_COVIDAssistance_Update
Following the WSTA’s discussions with Defra on whether retail shops, online businesses and the production of alcohol can continue to operate under the current restrictions we are now able to share a template letter for all food and drink industry key workers to carry.
In order to ensure that your company can continue to operate Defra has created a letter template for businesses to fill in and issue to their workers as proof that they are carrying out legitimate business if challenged.
A copy of the Defra letter template can be found here - 2020-03-27_DEFRAKeyWorkersTemplate
Members may also find it useful to have a copy of the open letter written by the Environment Secretary, George Eustice, to the food and drink industry. https://www.gov.uk/government/news/letter-from-the-environment-secretary-to-the-food-and-drink-industry
Chancellor Rishi Sunak announced further financial measures at the daily press conference today to support the self-employed:
- A new self-employed income support scheme will be set up
- This will mean self-employed people will be eligible for a taxable grant worth 80% of average monthly taxable profits from the last three years of up to £2500 for at least 3 months
- People can claim these grants and continue to do business
- Support is available for those with trading profits up to £50k from the most recent tax year, and is only available for those whose majority of work is self-employed, and those with a 2019 tax return
- The scheme will be accessible no later than the beginning of June
- HMRC will contact directly and will pay the grant directly into bank accounts
- Self-employed people will also be given extra time to submit their January tax return
- The self-assessment tax payments due in July will be deferred to January
- Immediate support is available for self-employed people through the business interruption loans, and they can also now can access Universal Credit in full of up to £1.8k pm
- It was also suggested that there are inconsistent contributions by people from different employment statuses, and that contributions may need to be brought into line with those on PAYE
We’ve had a number of inquiries from member asking us if their retail shops, on-line businesses and production of alcohol can continue, given the current restriction on certain types of businesses opening to the public. Below is a quote from Miles regarding the advice we’ve been offering members.
Miles Beale, Chief Executive of the Wine and Spirit Trade Association, said:
“The WSTA team has sought clarification from Government on what is classified as essential businesses. We have consulted extensively with DEFRA, who have not given us a definitive view, however they have accepted that we will be advising our members – with businesses in England and Wales, and in Scotland – that they can remain open, as long as all staff adhere to social distancing rules. The situation is different in Northern Ireland, where off-licences are not permitted to open.
Based on advice issued by the Office of Product Safety and Standards (OPSS) within BEIS, officials have said only essential businesses should now remain open. It follows from this that a business that is allowed to remain open must be essential. Off-licences have been added to the list of retail outlets that are permitted to open.
In order for alcohol retailers and online businesses to trade then the supply chain for those businesses needs to remain functional. For businesses like bottling plants and distilleries it is simply not possible to work from home. Provided businesses are content that staff can respect social distancing rules while at work and when travelling to work and that staff are happy to continue to work; then businesses can stay open.
We take further comfort from the fact that Michael Gove has said publicly that online trade in non-essential items can continue. We are therefore advising our members who trade online that if they wish to continue to offer online sales then, provided staff are able to work safely, then activity can continue.”
The government’s core message remains “Stay at home” and a link to all the relevant distancing guidance is here: https://www.gov.uk/government/collections/coronavirus-covid-19-list-of-guidance
- Restrictions would be introduced and people would be expected to stay at home with the following exceptions:
- Shopping for basic necessities
- One form of exercise per day
- Travel for medical need
- Travelling to and from work where absolutely necessary and work cannot be done from home
- All shops selling non-essential goods would close
- All gatherings of more than 2 people are to be banned
- All ceremonies except funerals are to be banned
The WSTA is following up with government today for further clarity, including around what ‘essential business activities’ constitutes.
You will notice that there is nothing on excise duty, and the WSTA has today written to the Chancellor to call for a 6-month duty suspension.
We will be pushing for this in advance of the next duty payment, due on 25 March. For those of you who responded to our survey and outlined your support, Lucy will be in touch. If you have not expressed an interest in the survey but would like to sign up to the letter, please drop Lucy an email –Lucy@wsta.co.uk
As some of you will be aware, some members have found that HMRC have been declining to make time to pay agreements with businesses regarding excise duty. We have intervened today with HM Treasury, who have confirmed that the policy intention is to include excise duties in time to pay agreements. This is a positive step as a result of WSTA engagement. Measures affecting businesses:
- Cafes, pubs, bars, restaurant, nightclubs, theatres and gyms were all ordered to close tonight as soon as they can, and not to open tomorrow.
- On trade premises can continue to provide takeout services.
- The situation will be reviewed each month
- Any employer is eligible for the scheme
- HMRC grants will be available for most wages of employees who are not working but are furloughed or kept on the payroll
- This pay will be up to 80% of salary, up to £2500pm
- This will allow for businesses to retain staff, even if employers cannot afford to pay them
- It will be backdated to 1 March and will be open for 3 months, and longer if necessary
- There is no limit on funding available for the scheme
- The scheme will be up and running with first grants payed within weeks
- The loans available will be interest free for 12 months, as opposed to 6 months as previously announced
- The loans will be available from Monday
- Further measures will be announced next week to support larger and medium sized businesses
- The next quarter of VAT payments are deferred
- No business will pay VAT until end of June and will have until the end of the financial year to pay those bills
- Government will be launching a major national ad campaign to communicate business support available
- Universal credit is being increased by £1k pa
- Working tax credit will be increased by £1k pa
- The Government will be suspending the minimum income floor
- Self-employed people can now access universal credit at a rate equivalent to Statutory Sick Pay (SSP) for employees
- The next self-assessment payments are being deferred to Jan 2021
- £1bn of support has been announced for renters to increase housing benefit
- At least covering 30% market rents in each area