Please note this article was published on 26th February 2021 and some information may be out of date. To find out the latest news around COVID-19 support, visit our Recovery & Support Hub here.
The BEIS Committee has published their interim pre-budget report on the impact of Coronavirus on businesses and workers and calls for the Chancellor seeking long-term solutions to fire-up business recovery.
The report states ‘We recommend that the Government reviews the coverage of current support to make sure that the greatest support is provided to those individuals facing most hardship, and that any gaps in provision are addressed. We expect the Chancellor to announce measures to this effect in his Budget statement next week.’
‘We appreciate that not every job can be saved as the Chancellor has set out, but are nonetheless concerned about rising unemployment, which is particularly affecting women, BAME workers and young people because they are more likely to be employed in insecure work. We are concerned that damage may be done to some sectors by the premature withdrawal of furlough and the Self-Employment Income Support Scheme, which would hamper the UK’s ability to recover quickly with a focus on good quality work.’
‘We recommend the Government urgently produces an economic assessment which sets out the opportunities and risks posed by structural long-term changes to the economy from the combined impacts of COVID-19, Brexit, and the net zero transition. We welcome the publication of the Skills for Jobs White Paper, and the Government should continue to build a comprehensive, long-term cross-departmental plan on education, skills and jobs to create good quality employment opportunities for the future.’
‘This plan should form part of the Industrial Strategy to ensure our educational institutions, key business sectors, the workforce and broader economy are strategically geared towards achieving long-term goals such as the net zero transition, our aging society and the technological modernisation of our economy. We recommend that the Government provide a detailed outline of their approach in its response to this report.’
Read the full report here.
Commenting on the BEIS Select Committee report, ‘The impact of Coronavirus on businesses and workers: Interim pre-Budget report’, British Chambers of Commerce Director General Adam Marshall said:
“As Chambers of Commerce have said repeatedly over the past twelve months, business communities cannot be turned on and off like light switches, nor expected to withstand stop-start restrictions and the drip-feeding of announcements on financial support.
“Our research has consistently highlighted the debilitating impact of restrictions on business’ cashflow and ability to retain staff. The nature of the pandemic has undoubtedly meant that certain sectors have been hit harder than others, and it is right that the government has taken steps to keep them afloat. However, this report rightly shines a light on parts of the economy – aviation, aerospace, health, and particularly owner-directors of limited companies – which have received comparatively little support.
“The situation for many firms is critical, as this report demonstrates. With cliff edges on government support schemes nearing, keeping the furlough scheme available until a full reopening of the economy is possible, extending and expanding business rates relief, prolonging VAT deferrals, and an immediate, further round of upfront cash grant support are just some of the practical steps that the government must take in order to give firms a fighting chance of restarting and rebuilding their operations.
“The Chancellor has an opportunity on Budget Day to set out a clear, long-term framework for how financial support will be delivered. He must not waste it.”
“Our research has consistently highlighted the debilitating impact of restrictions on business’ cashflow and ability to retain staff."
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