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Further help needed From August, employers will have to pay national insurance contributions (NICs) and pension contributions for furloughed staff. From next month, the percentage of employee wages paid through the Job Retention Scheme to furloughed staff will be reduced in stages, with employers taking on an increasing proportion of pay for those who are furloughed. Firms in England that hire an apprentice aged between 16 and 24 between now and January will receive £2,000. Those that hire new apprentices aged 25 and over will be paid £1,500. New figures show that apprenticeship starts in May of this year
stood at 9,000, down 60% from this time last year. Commenting on the developments, Federation of Small Businesses (FSB) National Chairman Mike Cherry said: “One in five small firms have been forced to let staff go over the last three months. Even with critical emergency measures in place, jobs are sadly being lost in the here and now. As we look to the autumn, it’s clear that we cannot afford to pull up the business support drawbridge any time soon. “Giving firms £1,000 for every employee they bring back from furlough is welcome, but Job Retention Bonus funds won’t manifest until next year – jobs are being lost today.
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hitting the right note Crawley-based corporate finance specialists Watersheds have enabled a couple who transformed their specialist violin shop into a thriving online retail business to sell their business, despite the Covid-19 lockdown. In a deal led and executed by corporate finance specialists Watersheds, who have an office in The Beehive Building at Gatwick, online retailer The String Zone Limited has been sold to wholesale distributor Strings and Things. Andrew and Gillian Riley founded The String Zone Limited in 2004 to supply strings and accessories for violins, violas, cellos and double basses to augment their traditional violin shop. But as the nature of retail changed, they took the online part of their business away from the physical confines of their Egham-based shop, which was known as Andrew
Riley Violins in order to further develop The String Zone and refocus it as an independent company. When they took the decision to retire last year they discussed their plans with Watersheds, who generated a lot of interest in the business. Strings and Things, a wholesale distributor of musical instruments and accessories based in Shoreham by Sea, saw particular value in the business. The advent of lockdown brought some particular challenges to progressing the sale, but Watersheds partner Dan Wright, said that by using some creative solutions the deal went through almost as normal. “The pandemic meant the buyer couldn’t inspect premises to see how stock was stored, and how much space it took up, for example,” said Dan. “So we organised a virtual video tour for the buyer, which put their mind at rest.”
August/September 2020 | www.southeastbusiness.com
“In addition to job retention, the Chancellor should be looking at job creation. Nine in ten people who moved from unemployment back into work following the crash did so via a small business or self-employment. This recession will be deeper than the last, and the annual cost of running a small business has soared by at least £60,000 since 2011, primarily due to rising employment costs. “That’s why we’re seeking help for employers where NICs are concerned, either through an uprating of the Employment Allowance or a NICs holiday for firms who employ those furthest from the workplace. Jim Cunliffe, FSB Sussex Area leader, added: “Greater incentives to take on apprentices in England are much needed. Policymakers have to ensure that proposed funds reach the small firms that can make a difference with minimal bureaucracy. More than 90% of apprentices employed by small businesses are under the age of 25. Once again, this is money that will take several months, at the very least, to reach firms. “It’s great that more small businesses in England can finally open their doors after months of no revenue coming in. Further targeted support for those having to remain shut is urgently needed, especially in areas where local lockdowns are in place, as is help for the hundreds and thousands of people – including company directors and the newly self-employed – who have received no support at all for more than 130 days.”
› Gillian and Andrew Riley of
The String Zone, foreground, with Dan Wright of Watersheds
