Chancellor Rishi Sunak’s first budget was overshadowed by the coronavirus outbreak.
Sunak outlined a budget that aimed to protect the economy from the impact of the coronavirus outbreak.
Lex Butler, Chair of HBAA commented on the chancellor’s budget: "Many HBAA members – hotels, venues and agencies – are SMEs and they are expecting to experience significant cash flow problems as a result of the coronavirus issue. So we’re delighted by many of the chancellor’s Budget initiatives that will alleviate the pressures that they will face.
"The 12 month abolition of business rates for smaller businesses; the extension of this to include the leisure and hospitality sector; the coronavirus temporary business interruption loan scheme and the refunding of sick pay for staff off sick for up to 14 days will all benefit our smaller business members. The freeze in fuel and alcohol duty and the investments in roads will also help the whole of our industry.
"The cancellation and reduction of meetings and events is already impacting on everyone in our industry so these measures are all very welcome. While we would have liked support for training, addressing the immediate issues that we are facing is rightly the priority.
"As this industry generates £43bn each year for the UK economy, we hope that the Government will keep the issues that the industry is facing under ongoing review and take further steps to ensure that this valuable sector doesn’t decline into disrepair through lack of support.
In Chancellor Rishi Sunak’s maiden speech, he said: “I know how worried people are … what everyone needs to know is we are doing everything we can to keep this country and our people healthy and financially secure. This is an issue above party.”
He said: “we will get through this together”. But there are other matters also to address, after the election victory. He adds: “We just had a general election where people voted for change … this budget delivers on that change. Yes, it is a budget that provides for security today, but it is also a plan for tomorrow.”
The budget confirms an £8.72 minimum wage for over-25s, inheritance tax and National Insurance cuts, the end of the tampon tax, 50 million pothole repairs, a doubling of flood defence funding, and a £5bn budget for getting gigabit-capable broadband into the hardest-to-reach places in the UK.
Small retail, leisure and hospitality businesses will be exempt from paying business rates for one year as part of an emergency budget to protect the economy from the impact of the coronavirus outbreak.
All retail, leisure and hospitality businesses with a rateable value of less than £51,000 will be exempt from paying business rates over the next financial year, in a tax cut worth more than £1bn.
Support for business
A number of measures were announced including £2bn of sick-pay rebates for up to 2m small businesses with fewer than 250 employees.
Lending of £1bn via a government-backed loan scheme, with government backing 80 per cent of losses on bank lending.
There is support for SMEs – small business rates relief will be allowed a £3,000 cash grant, which amounts to a £2bn tranche of funds for 700,000 small businesses.
The Bank of England has cut the base interest rate from 0.75 per cent to 0.25 per cent. This was to help British business manage the economic rollercoaster of the coronavirus outbreak “that could prove sharp and large, but should be temporary.”
Jonathan Geldart, director general of the Institute of Directors responded to the budget: "Given the circumstances, the chancellor had to be bold, and he came through for business today," said Geldart, whose organisation represents senior business executives.
"With the coronavirus outbreak threatening a cashflow crunch, measures to cut costs and support loans to businesses are on the money," he told the BBC.
"Wider reliefs around business rates and job taxes will also buoy firms as they look to weather Covid-19's implications.
He says directors have "long been crying out for transport and digital upgrades" but he warned the chancellor against writing a blank cheque.
"The question now is how we translate that money into real improvements for local economies."
