What Does the New Budget Mean for Retailers?

This week, Rishi Sunak MP, the new Chancellor of the Exchequer revealed his first budget. As countries across the world battle to contain the spread of Covid-19 (Coronavirus), it came as no surprise that the budget contained significant spending plans and policies to deal with the virus.

But which of these plans and policies could directly impact you and your business?

What: Business rates for small shops will be scrapped.
What does this mean for you? If your store has a rateable value below £51,000 you don’t need to pay any business rates in the new financial year.

What: Banks to offer loans of up to £1.2m to small and medium businesses and the government will cover bank losses of up to 80%.
What does this mean for you? It may be easier to secure a bank loan if your business needs financial support.

What: The government will refund the cost of statutory sick pay for up to 14 days to small- and medium-sized businesses for employees who need to self-isolate because of Covid-19. This applies to businesses with less than 250 employees.
What does this mean for you? Your business will be protected from the full financial impact of employee sickness.

Chancellor Rishi Sunak commented that the Coronavirus outbreak would have a "significant" but "temporary" impact on the UK economy, driven by employee sickness, supply chain disruption and reduced consumer spending. However, the budget did offer some reassurance to independent retailers that their business will be supported through the worst of the crisis.

“We hope this budget update brings some peace of mind to smaller businesses during these uncertain times." Commented Martin Rouse, Retail Director for Payzone Bill Payments Limited. "The services provided by local shops will be crucial now, more than ever, and we will continue to support Payzone retailers as they serve their local community over the coming weeks and months.”