Businesses ā€“ Parliamentary Question on the Resumption of Trading

I have received this answer to my recently submitted Parliamentary Question:

Department for Business, Energy and Industrial Strategy provided the following answer to your written parliamentary question (38407):

Question:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assumptions a business should make on when they can resume trading so they can produce a meaningful budget and loan proposal when seeking a loan under the Coronavirus Business Interruption Loan Scheme. (38407)

Tabled on: 21 April 2020

Answer:
Paul Scully:

The Government has now taken further steps to ensure that lenders have the confidence they need to process finance applications swiftly. We have changed the viability tests so lenders are only required to assess whether a business was viable pre-COVID-19. Any concerns over its short-to-medium term business performance due to the uncertainty and impact of COVID-19 cannot be taken into account in the loan decision. The applicant must however still satisfy the other eligibility criteria of the CBILS.

The answer was submitted on 05 May 2020 at 12:37.

Job losses at BA?

I have had aĀ  number of emails about the worrying situation at BA

Ā I was shocked to read the statement from IAG on the publication of their first quarter results. I note they managed to lose a large sum on fuel and currency hedges as at that date, which presumably is a one off. I see thatĀ  whilst they plan to cut the workforce at BA, they announce no such plans for Iberia, Aer Lingus, Vueling or LEVEL, their other airlines. This Spanish registered company singles out BA for bad treatment, at a time when the whole aviation industry has suffered a large loss of passengers owing to the closures.

The Group tells us it has Euro 6.95 billion in cash and cash equivalents, as well as access to substantial extra borrowings if needed. It is making liberal use of the UK government furlough scheme, with UK taxpayers paying most of the wages of 22,626 UK staff. Given this, I would expect aĀ more sympathetic Ā approach to all UK staff .Ā Ā Ā Ā I will pursue these matters with the top management of IAG.

They have benefitted over many years from the success of BA and from the profitable business theyĀ enjoyed Ā out of UK airports. They should wish to be good UK corporate citizens, and as takers of UK government subsidy they should acknowledge their debt to UK BA employees and UK taxpayers who are helping pay for their business continuation. It is too early to know what the recovery prospects are for aviation. The presence of the furlough scheme provides aĀ good means to keep the business ready to fly again when things change for the better.Ā 

Charitable thoughts

I have been approached by constituents who are working hard for charity. One has asked me to mention his idea that people stuck at home might like to donate the price of theirĀ  missed haircut to charity.Ā  To doĀ so he has set up Ā www.haircutforcharity.com for those who would like to check it out.

Another has told me about Rotary’s wish to raise money for disaster relief. They are planning a telethon on May 2nd at COVID-19#RotaryResponds.

Dental care hubs

I have received this update from NHS England:

Dear Mr Redwood

Since the announcement on 25th March that all routine dentistry should cease, there are now 36 hubs now fully operational across the South-East of England.

Urgent dental care hubs have been opened in Berkshire over the last week with hubs opening in Maidenhead and Bracknell on 14th April, Reading on 20th and Slough on 21st.

When establishing the urgent care hubs we have had to consider the requirements of patient access alongside the safety of those patients and the dental team delivering those services. Critical to the safety of the dental team is Personal Protective Equipment (PPE). The availability of this equipment has limited the number of sites from which services can be provide at this stage. In identifying the sites for the hubs, we have located them in the main population centres, also trying to ensure they are accessible to the surrounding areas. Many of the residents of Wokingham Borough live in wards on the outskirts of Reading.

The other issue we have had to take into account are the different patient needs likely to be presented on an urgent basis. The potential Covid-19 status of the patients impacts on which hubs they will be referred to. The hubs in the two largest population centres (Reading and Slough) are for most of the population and can provide treatment for patients who are Covid-19 symptomatic, self-isolating or asymptomatic. The hubs in Maidenhead and Bracknell are for patients who have been identified as shielded from Covd-19 or greater risk to significant damage to their health due to Covid-19. The services delivered from these hubs will be delivered by a service provider who specialises in providing treatment for more vulnerable patients (the Community Dental Service).

Patients will access the hubs if necessary, via referral from their NHS dental practice. If patients do not regularly attend an NHS practice, they can find out about NHS dental practices close to their home via https://www.nhs.uk/

When they contact the dentist, the dentist will assess their needs offering advice or prescribing medication where necessary. If the dentist believes that urgent treatment is necessary, they will refer to an urgent care hub who will carry out a further assessment to confirm that urgent treatment is required and book the patient an appointment.

The referral process is underpinned by an electronic referral management system that will direct the patient to the hub that is closest to their home address and appropriate to their wider health needs.

The hubs that have been established to date are the first tranche of hubs and we will continue to look at the possibility of opening further hubs if circumstances allow, but the safety of the patients and the dentists are primary considerations in this process.

Yours sincerely

Sarah Macdonald

Director of Primary Care and Public Health Commissioning

NHS England and NHS Improvement ā€“ South East Region

Coronavirus Job Retention Scheme

I have received the enclosed update from HMRC:

Dear Sir John,

I want to update you on the Coronavirus Job Retention Scheme. Iā€™m very grateful to the huge number of MPs who have shared HMRCā€™s guidance on the scheme with constituents and would please ask you continue to do so.

More than 285,000 businesses have already applied for the Coronavirus Job Retention Scheme since it went live on Monday 20 April. To be sure payment comes through to employers before the end of the month, they will need apply today (Wed 22 April).

Accessing the system

We have noticed that some people have had difficulty accessing the system because they do not have an active PAYE enrolment. In order to make a claim they will need to:

  • have a Government Gateway (GG) ID and password ā€“ if they donā€™t already have a GG account, they can apply here, or by going to GOV.UK and searching for ‘HMRC services: sign in or register’;
  • be enrolled for PAYE online ā€“ if they arenā€™t registered yet, they can do so now, or by going to GOV.UK and searching for ‘PAYE Online for employers’.

Iā€™m pleased to say that we were able to investigate and resolve the issue quickly thanks to the agents who raised an issue with authorisations when the new system first went live on Monday morning.

Coronavirus Job Retention Scheme Calculator

We are updating the online calculator tool so that it covers more employment circumstances this afternoon. The update will mean that employers can use it to work out what they can claim for most employees who are paid irregular amounts each pay period, as well as those who are paid fixed amounts.

Webinars now available

To support businesses, we have been offering live webinars on a variety of Covid-19 related topics, including the Job Retention Scheme and how to make a JRS claim.

Employers can book a place on our ‘how to’ JRS webinars here.

They can book a place on any of our other webinars or watch a recording on HMRCā€™s YouTube channel

If employers in your constituency have already made a claim

Employers should retain all records and calculations for their claims, in case we need to contact them. Provided their claim is made in accordance with HMRCā€™s published guidance, they can expect to receive the funds six working days after their application. We ask them not to contact us before this time.

HMRC will check claims made through the scheme and will act to protect public money against anyone who makes a claim using dishonest or fraudulent information.

We continue to be busy supporting customers at this time, so we would ask that they only call us if they canā€™t find what they need on GOV.UK or through our webchat service – this will leave our lines open for those who need our help most.

Weā€™d encourage all employers to also protect their own credentials from potential scammers and opportunist criminal activity.

I hope this update is helpful. I continue to wish you all the best at this challenging time,


Jim Harra
First Permanent Secretary and Chief Executive, HMRC

West Berkshire

I had a most reassuring conversation with the Chief Executive of West Berkshire Council today. He reported no known problems with protective clothing for West Berkshire social services. They have established a virus test centre in Newbury for key workers to use if they have symptoms or worries about their healthĀ or exposure to the disease.

He praised the work of community groups in Burghfield and Mortimer. There are someĀ  money issues which I will take up with the government over social care and the distribution of the additional Ā£1.6bn announced for Councils recently.

I thanked him and his staff for all the work they have put into social care, business grants and other requirements from the virus. I also join him in saying thank you to all the volunteers who are helping the community.

COVID-19: Business ā€˜support finderā€™ tool and ventilator specifications

The Government has launched a new ā€˜support finderā€™ tool which will help businesses and self-employed people across the UK to quickly and easily determine what financial support is available to them.

For more details, please visit this link:
https://www.gov.uk/business-coronavirus-support-finder

The Government has produced an update to the specification for any manufacturers seeking to make ventilators.

For more details please visit this link:
https://www.gov.uk/government/publications/specification-for-ventilators-to-be-used-in-uk-hospitals-during-the-coronavirus-covid-19-outbreak?utm_source=284796da-db81-4c5e-b732-7a20710333bf&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

If your business is able to support, please register that capability here:
https://www.gov.uk/coronavirus-support-from-business

Job Retention Scheme open for claims

I have received this update from HMRC:

Dear Sir John,

Employers in your constituency can now claim online for a grant for 80% of their furloughed employeesā€™ salaries, up to a maximum of Ā£2,500 per employee, per month, through the Coronavirus Job Retention Scheme. This scheme will be open until the end of June 2020.

Before employers in your constituency claim, they need to:

  • Read all the available guidance on GOV.UK before applying;
  • Gather all the information and the precise calculations they need before starting their application. If they have a payroll provider, they will be able to help them with this;
  • Employers can find out more in the calculation guidance where they can access a claim calculator. This will allow them to check their claim for most employees who are paid the same amount each pay period;
  • Access our simple, step-by-step guide on GOV.UK for additional help.

To receive payment by 30 April, employers will need to complete an application by 22 April.

We expect to be very busy so we would ask that employers only call us if they canā€™t find what they need on GOV.UK or through our webchat service – this will leave our lines open for those who need our help most.

After employers have made a claim, they should:

  • Keep a note or print-out of their claim reference number ā€“ they wonā€™t receive a confirmation SMS or email;
  • Retain all records and calculations for their claims, in case we need to contact them;
  • Expect to receive the funds six working days after they apply, provided they claim matches records that we hold for their PAYE scheme. Employers should not contact us before this time.
  • Ask their furloughed employees not to contact us directly – we will not be able to provide them with any information on individual claims.

HMRC will check claims made through the scheme and will act to protect public money against anyone who makes a claim using dishonest or fraudulent information. 

We also encourage all employers to protect their own credentials and please be aware of potential scammers and opportunist criminal activity.

Iā€™d be very grateful if you could share this information with employers in your constituency. 

I wish you well at this challenging time,ā€Æ

Jim Harra

First Permanent Secretary and Chief Executive, HMRC

More money for Councils

I have received this update from the Government:

Dear John

SUPPORTING LOCAL GOVERNMENT IN RESPONDING TO COVID-19

Local government is an essential part of our response to Covid-19 and has mobilised to help us keep the country moving, protect the NHS and save lives, whilst delivering social care and other vital public services.

I announced on Saturday another Ā£1.6 billion in funding to support local authorities in delivering essential frontline services during the Covid-19 pandemic. With this funding councils can continue to provide support to those who need it most, including getting rough sleepers off the street and supporting new shielding programmes for clinically extremely vulnerable people. It will also provide assistance for our heroic public health workforce and fire and rescue services.

This new funding is in addition to the Ā£1.6 billion announced on 19th March and means that local authorities will have received over Ā£3.2 billion, an unprecedented level of additional financial support in recent times. This will also help councils to continue delivering vital services from adult social care and childrenā€™s services to waste collection. The grant will be un-ringfenced, recognising local authorities are best placed to decide how to meet the major Covid-19 service pressures in their local area. I will write out with confirmation of individual allocations as soon as practicable.

I have been meeting regularly with council leaders and officers from across the sector so I can understand their local challenges, including the additional costs and pressures on their finances they are facing as a result of the current crisis. The package I have announced today responds to these and demonstrates my commitment to making sure councils, including upper and lower tier authorities, have the resources they need to support their communities through this challenging time.

Alongside providing additional funding, I have also taken a number of measures to support immediate cash flow concerns, most recently deferring Ā£2.6 billion in local authority payments of the Central Share of retained business rates and making an upfront payment of Ā£850m in social care grants this month.

In summary the Governmentā€™s package of support for local areas is:

  • ā€¢ Ā£3.2 billion in funding for local authorities to deliver essential frontline services
  • ā€¢ Ā£2.6 billion in deferred local authority payments of the Central Share of retained business rates
  • ā€¢ Ā£850 million upfront payment in social care grants this month
  • ā€¢ 250,000 food boxes delivered so far to help shield those who are clinically vulnerable ā€“ funded directly by central Government
  • ā€¢ Ā£20 billion in business rates support and grant funding to help businesses manage their cashflow
  • ā€¢ Ā£10,000 grants for businesses eligible for Small Business Rates Relief and Rural Rates Relief
  • ā€¢ Up to Ā£25,000 for businesses in the retail, hospitality and leisure sectors, subject to their rateable value
  • ā€¢ Ā£3.2 million of initial emergency funding for local authorities to support rough sleepers, provided before the un-ringfenced funding
  • ā€¢ Ā£2 million additional funding to bolster domestic abuse helplines and online support

And this very comprehensive and coherent support comes on top of the 2020/21 financial settlement, the most generous for local government in a decade.

I will continue to work with councils over the coming weeks to support them as they lead the national effort at the local level.

I am extremely grateful to everyone working in local government, from care and social workers to refuse collectors, for the role they have played in ensuring we keep the country moving during this period. They are the unsung heroes of the coronavirus response and the funding package announced today recognises that the work our local councils undertake has never been more vital.

RT HON ROBERT JENRICK MP