Government Extends Business Support Measures, But Have They Done Enough?


The Government has now extended the temporary insolvency measures previously implemented, ‘providing further support to businesses during the pandemic’.[1]

Following the recent decision to delay the easing of Covid-19 restrictions from 21 June to 19 July, hospitality businesses are required to continue enforcing all social distancing guidelines as were put in place on 17 May, including limited capacity, wearing of masks unless sat down, and table service.

Despite this, business support measures including the furlough scheme and VAT reduction on hospitality  were initially confirmed to have not been extended past 30 June following the Prime Minister, Boris Johnson’s, questioning from the media. In addition to this, the ban on commercial tenancy evictions was due to be lifted on this date. This meant that businesses struggling financially due to the restrictions could be evicted from the premises, ultimately losing their business.

This has led to business leaders calling on the Treasury to extend such financial support measures in order to bridge the 18-day gap, demanding that the government values the importance of these businesses.

Whilst the government has confirmed that they will continue the furlough scheme, and protect companies from creditor enforcement action until 30 September where their debts relate to the pandemic, much of the current support will cease on 1 July. Business rate exemptions for retailers and hospitality firms will end, furlough wage contributions from employers will increase, and firms will have to start paying deferred VAT bills.[2]

Covid-19 business support was introduced to help businesses that were unable to trade, or whose ability to trade was impacted, due to the pandemic. Loss of such support measures will be detrimental to a number of small businesses, and even larger corporations due to the duration of the pandemic.



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