Business groups give mixed response to Spring Statement


The UK’s business groups gave a mixed response to Chancellor Rishi Sunak’s Spring Statement speech.

Shevaun Haviland, Director General of the British Chambers of Commerce (BCC), said:

‘The Spring Statement falls short of the action businesses needed to see. While there are some positive announcements that firms will welcome, it did not fundamentally address the huge cost pressures they are facing.’

The Confederation of British Industry (CBI) warned that the measures announced by the Chancellor ‘don’t do enough to tackle the current challenges facing firms’.

Tony Danker, Director General of the CBI, said:

‘The Chancellor is right that the government can’t solve every challenge. However, the only enduring response to inflation, energy prices and cost of living challenges is a relentless campaign for economic growth.’

Meanwhile, the Federation of Small Businesses (FSB) said that it was pleased to see the Chancellor adopt its recommendation of uprating the Employment Allowance to help small employers with national insurance costs.

Martin McTague, National Chair of the FSB, said:

‘We originally put forward the Employment Allowance as a targeted measure to help small firms, and it has now been expanded three times since its creation.

‘Together with a cut to fuel duty, these measures will provide crucial breathing space for our embattled small employers.’

Internet links: BCC website CBI website FSB website

Spring Statement 2022


Against a backdrop of rising inflation, Chancellor Rishi Sunak presented his first Spring Statement on Wednesday 23 March 2022.

In his Spring Statement, the Chancellor announced a cut in fuel duty for petrol and diesel as he sought to ease the impact of rising prices for households and businesses.

The Chancellor will lift the starting thresholds for National Insurance contributions (NICs). He also pledged a cut to income tax in 2024. However, the Health and Social Care Levy will still be implemented in April 2022.

For businesses, there is an increase to the Employment Allowance, as well as relief from business rates on a range of green technologies and help with training and the adoption of digital technology.

Click here to read our summary of the Spring Statement 2022.

Spring Statement is the time to act, says CBI


The Chancellor must act at the Spring Statement or risk the UK economy drifting backwards to low growth, warns the Confederation of British Industry (CBI).

The Spring Statement will take place on 23 March 2022. The CBI has set out a range of policies it says are aimed at sparking growth via business investment.

These include a permanent investment incentive to replace the super-deduction. The business group says this will boost business investment by £40 billion a year by 2026.

It also wants to see the Apprenticeship Levy turned into a Skills Challenge Fund. In addition, the government should tackle high energy prices by improving home energy efficiency through new grants for decarbonised heating systems.

CBI Director General Tony Danker said:

‘Business backs the Chancellor’s desire to foster a renewed culture of enterprise and deliver a more ambitious growth rate. His vision set out only last week to leverage the tax and regulatory system to promote business investment, upskill Britain’s workforce and stimulate innovation is the right recipe for future success.

‘Faced with a record tax burden, a cost-of-living crisis, wage pressures and the end of the super-deduction, firms will be looking to the Spring Statement for a clear signal that the government’s ambition will be matched by action.

‘That is the time to act if we want to push the economy onto a higher growth trajectory. It takes time for policies to kick in and deliver results, so there’s no point in waiting until an Autumn Budget.’

Internet links: CBI website  GOV.UK

Coronavirus SSP Rebate Scheme set to close on 17 March


The?Statutory Sick Pay Rebate Scheme?(SSPRS) will close on 17‌‌‌ ‌March‌‌‌ ‌2022.

The SSPRS was reintroduced by the government on 21 December 2021 for employers with fewer than 250 employees.

The maximum claim per employee is two weeks at the statutory sick pay (SSP) rate of £96.35 per week (£192.70 in total), which is the rate for 2021/22 (£99.35 2022/23). The employer’s claim is also capped at the number of employees in its PAYE scheme on 30 November 2021.

In a statement, the government said:

‘You have until 24‌‌‌ ‌March‌‌‌ ‌2022 to submit any new claims for absence periods up to 17‌‌‌ ‌March‌‌‌ ‌2022, or to amend claims you have already submitted.

‘You will no longer be able to claim back SSP for your employees’ coronavirus-related absences or self-isolation that occur after‌‌‌ ‌17‌‌‌ ‌March‌‌‌ ‌2022. 

‘From 25 March we will return to the normal SSP rules, which means you can revert to paying SSP from the fourth qualifying day your employee is off work regardless of the reason for their sickness absence.’

Internet link: GOV.UK

Businesses urged to apply for remaining COVID-19 support grants


Businesses are being encouraged to apply for remaining coronavirus (COVID-19) grant funding from local authorities.

Hospitality, leisure and accommodation businesses can still apply for one-off cash grants of up to £6,000 through the Omicron Hospitality and Leisure Grant scheme.

The funding is made up of £556 million available through the Omicron Hospitality and Leisure Grant (OHLG) scheme and a further £294 million through the Additional Restrictions Grant (ARG) scheme.

The OHLG scheme provides businesses in the hospitality, leisure and accommodation sectors with one-off grants of up to £6,000 per premise.

To provide further support to other businesses, the ARG scheme provides councils with funding they can allocate at their discretion to businesses most in need, such as personal care businesses and supply firms.

Paul Scully, the Minister for Small Business, said:

‘We’re working to get our economy running on all cylinders again so we can focus on making the UK the best place in the world to work and do business, creating jobs along the way.

‘Eligible businesses should apply as soon as possible for the grants available to help them put the pandemic behind them and get on a sounder footing.’

Internet link: GOV.UK

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