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Budget 2020: The Chancellor Means (Small) Business

13 March 2020
2 minute read

Jhanvi Gudka

The Government unveiled its Budget 2020 yesterday and the good news is that it included a lot of support for small businesses. Small businesses power the UK economy, but we know the recent floods and Covid-19 have made things particularly difficult. In this short blog, we’ve summarised everything you need to know and how the Chancellor’s Budget can help your small business to thrive. 

Statutory sick pay 

The Government will refund the cost of statutory sick pay for up to 14 days for any businesses with less than 250 employees. This will come at a cost of £2 billion to the UK Government.  

Coronavirus Business Interruption Loan Scheme 

This scheme will allow banks to provide loans of up to £1.2 million to small businesses with the Government covering up to 80% of losses. Of course, it’s worth noting that payments are likely to be fixed so it is worth looking into alternative finance providers that offer flexible payment terms that mirror cashflow – particularly during uncertain times.  

The end of business rates 

Business rates will be slashed for small retail, hospitality and leisure firms for a year. This will apply to businesses with a rateable value of up to £51,000 and will help to bridge cashflow and ease the pressure from slow sales.  

A grant for the smallest businesses 

The UK’s smallest 700,000 businesses will receive a £3,000 cash grant which will cost the Government £3 billion. This is fantastic for those businesses starting out and we hope more details will be revealed soon about how quickly this cash can be paid.  

Support for startups 

The British Business Bank will receive £200 million to invest in the fastest growing companies, while an injection of £130 million will help to extend startup loans.  

If you have any questions or would like to find out more about how Liberis can help you over the coming months, please get in touch.  

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