Association Update

SQUEEZED MIDDLE

The Food & Drink Federation (FDF) has called on the government for more aid for businesses that are outside the scope of much of the government support, particularly suppliers to the foodservice sector, and PAPA has supported this.

RENTS

There is serious concern that accruing rent arrears could put some restaurants in jeopardy. Although they are protected currently by the government from landlords demanding rent payments, this ends in September and some landlords may demand all outstanding rent. There have already been cases where landlords were threatening winding up orders prior to the government stepping in to stop this. It is likely to be some time before some of these businesses get back to anything like normal and they will need time to pay arrears. The Association has been pressing the government on this and has been looking at possible solutions in order to present a way forward for government. Although the government has issued a voluntary Code of Practice, encouraging landlords and tenants to work together, there remain concerns that some landlords may not follow these guidelines.

RATES

The Association is also concerned that the current rating system disadvantages some sites. Although there was due to be a government review of the rating system this year, this has been delayed due to the pandemic.

TOILET FACILITIES

Operators are reporting a lack of guidance about the cleaning of toilets. In the absence of government guidance, PAPA has put together some guidance which has been circulated to members.

SOCIAL DISTANCING

After pressure from many quarters across the hospitality sector, the government has now reduced the 2m social distancing requirement to 1m, which should make it more viable for some restaurants and takeaways to operate.

EUROPEAN PIZZA & PASTA SHOW

PAPA is continuing to support plans for the European Pizza & Pasta Show in November, which will this year take place at London’s ExCel exhibition centre and will again coincide with the PAPA Awards. The organisers are positive about being able to run this year’s show, despite the difficulties.

PARTIAL FURLOUGHING

There is very likely a need for some businesses to continue to receive furloughing support beyond the end of October. However, initial indications from government to the Association suggest this is unlikely.

IMMIGRATION

The Migration Advisory Committee is currently holding a consultation on the Skill Occupation List and the Association is supporting the case for chefs and other key restaurant staff to be included on this.

PHE OBESITY CAMPAIGN

The Association anticipate that this campaign will be restarted once PHE is is less pre-occupied with the Covid-19 situation, particularly since the Prime Minister has stated he wants to deal with obesity. Consequently, there is likely to be more pressure on food businesses to meet targets, and particularly in the pizza sector. The Association is to press the government on the need to focus more on encouraging consumers to manage their diets and providing them with clear information at point of sale for them to do this.

DELIVERY DRIVER INSURANCE

Concern persists about the difficulties delivery businesses are facing in getting insurance. The Association has been trying to get underwriters to take this on for some years but so far none have been prepared to insure the businesses, although there is a company offering insurance to individual drivers. There is also concern that some drivers may be unaware that simple business cover is insufficient for food delivery. It is hoped that with more businesses getting involved in delivery, insurers might start to reconsider their position.

Grants, loans and other coronavirus support for business

Coronavirus Job Retention Scheme

Under this scheme businesses can furlough staff and the government will pay a proportion of their salary. Currently, the proportion paid is up to 80% up to a maximum of £2500 per month, including employer’s National Insurance and pension contributions. The business can choose to top this up to 100% if it wishes. This scheme is, however, due to taper down.

As of 1 July, employers have been able to bring furloughed workers back part time but will need to pay the proportion of the time they work. However, the government will continue to support up to 80% furloughed workers salaries, including NI and pensions.

This continues through the next month, but from 1 August employers will have to start paying their furloughed workers NI and pension contributions.

This changes again in September when the government contribution drops to 70% (up to a maximum £2190 per month), with employers required to top up at least 10% plus NI and pensions.

Finally, in October the government contribution drops to 60% (up to a maximum £1,875 per month) with employers required to top up at least 20% plus NI and pensions.

After October the scheme ceases.

Sick pay

Employers are able to claim Statutory Sick Pay (SSP) if any employees show coronavirus symptoms or have to go into isolation or shield. The current SSP rate is £95.85 per week. You can only make one claim per employee and you cannot claim for more than two weeks.

VAT and self-assessment deferrals

Businesses are able to defer their VAT payments to help cash flow without fines or interest being imposed. This applies to VAT payments due for the period from February to the end of June, when the scheme currently ceases. There is no need to notify HMRC to do this but bear in mind that any VAT due will need to be paid in the future when the scheme ends, although businesses may be able to negotiate a payment schedule to do this.

Self-assessment tax bills can similarly be deferred until January 2021 without interest or penalties. Again, there is no need to tell HMRC you are doing this.

Small Business Grant Fund

Those businesses receiving small business rates relief should automatically have received a rates holiday for the year to April 2021 and should have received a grant via their local council of £10,000.

Business Rates Relief

Sandwich bars, cafés and similar premises are entitled to a 12 month holiday from business rates under the Retail, Hospitality and Leisure Scheme if the rateable value of their premises was under £51,000 on 11 March 2020 and they did not qualify for the Small Business Grant Fund. Under this scheme, these businesses with a rateable value of up to £15000 in England and Northern Ireland (£12,000 in Wales, £18,000 in Scotland) should receive a grant of £10,000 and those between £10,000 and £51,000 a grant of £25,000.

Businesses which do not directly pay council rates may need to apply to their local council for these grants. Some local authorities have also supported those suppling into these markets with these grants.

Discretionary Grant Fund

Businesses with under 50 staff with fixed property costs that are not eligible for either the Small Business Grant Fund or the Retail, Hospitality and Leisure Grant Fund can apply to their local authority for support under the Discretionary Grant Fund. Grants of £25,000 or up to £10,000 can be provided to businesses, including suppliers, with a rateable value of more than £51k. Businesses, including offices, with more than one premise can get more than one grant.

Welsh Economic Resilience Fund

Businesses who have not been legible for other funding in Wales can apply for grants under the Welsh Economic Resilience Fund which offers grants from £10,000 to £100,000 depending on numbers employed.

Bounce Back Loan

If your small to medium-sized business (SME) is affected by coronavirus, you may be able to borrow between £2,000 and £50,000 through a Bounce Back Loan scheme via a bank. The amount you can borrow is limited to 25% of your annual turnover. The government will guarantee 100% of the loan and for the first 12 months you will not have to pay any fees or interest or make repayments.

Coronavirus Business Interruption Scheme (CBILS)

Businesses can also borrow larger sums under the Coronavirus Business Interruption Loan Scheme, with 80% of the loans underwritten by the government. Businesses can apply for this scheme through their bank.

FURTHER INFORMATION

UK Government business support

finder: https://www.gov.uk/ business-coronavirus-support-finder

Scottish Government support:

https://findbusinesssupport.gov. scot/

Welsh Government funding

checker: https://fundchecker. businesswales.gov.wales/

Northern Ireland funding support:

https://www.nidirect.gov.uk/articles/ coronavirus-covid-19-businessesand-employers