Derry Chamber reacts to Chancellor's support for self-employed workers

Paul Clancy, Chief Executive, Derry Chamber

Reacting to the Chancellor’s announcement of the Self-Employed Income Support Scheme, Derry Chamber Chief Executive Paul Clancy said:

“This is a welcome and necessary measure taken by the Chancellor to support the country’s self-employed workers and small business owners. Last week’s announcement to protect the incomes of millions of workers was an extraordinary step which will help sustain thousands of households but self-employed workers were not included. The Self-Employed Income Support Scheme will provide a taxable grant of 80% of your average monthly profits of £50,000 or less over the last three years up to £2500 per month. This will help ease extreme pressures on our self-employed workers and ensure their businesses survive this crisis.

“Self-employed workers are some of the most innovative and creative workers in our economy and it is right that they are also entitled to these supportive measures. Self-employed people are a core part of the North West regional economy and I am glad that some of the pressures our self-employed members are currently facing will now begin to ease. Government support throughout this crisis will be the deciding factor in whether our economy survives or sinks. We will now be working closely with government departments to ensure this funding is released as soon as possible for self-employed workers.”

COVID-19 Update

• The Chancellor, Rishi Sunak MP, held a press briefing this afternoon to outline the Government’s economic measures for self-employed people in response to the COVID-19 crisis.

• He announced a Self Employed Income Support Scheme for any self-employed person who has been adversely affected by the COVID-19 crisis.

• The scheme means the Government will pay any self-employed person a taxable grant worth 80% of their average monthly profit from the last three years up to £2,500 a month. This scheme will be open for at least three months and will be extended if necessary.

• Self-employed people can claim this grant and still be working.

• To ensure the scheme provides targeted support for those most in need, it will be open to anyone with trading profits up to £50,000.

• The Chancellor stated that this is for those who make the majority of their yearly income from self-employed work.

• To minimise fraud, only those who are already in self-employment, who have a tax return for 2019 will be able to apply.

• Mr Sunak stated that 95% of those who are self-employed will benefit from this scheme.

• HMRC are working on the scheme ‘urgently’ and people will be able to benefit from the scheme ‘no later than the beginning of June.’

• Eligible candidates will be contacted by HMRC, be asked to fill out a form and then money will be paid into their bank account.

• To ensure all in need of this scheme can avail, the Chancellor stated anyone who missed the filing deadline in January has four weeks from today to submit their tax return.

• To alleviate pressures now, self-employed people can access the Business Interruption Loans, self-assessment income tax payments can be deferred from July to January 2021 and have access to Universal Credit in full.  

• The Chancellor also said that details on the Jobs Retention Scheme will be made available tonight at businesssupport.gov.uk

• Home Secretary, Priti Patel introduced new emergency laws to the House of Commons today for police to fine those not adhering to the social-distancing laws within the Coronavirus

Derry Chamber appoints new Chief Executive

Paul Clancy, Chief Executive, Derry Chamber

The Londonderry Chamber of Commerce has appointed a new Chief Executive.

Paul Clancy was appointed this week and brings a wealth of leadership experience from previous roles in Dublin.

Mr Clancy has more than 20 years’ director and management level experience across a range of sectors including manufacturing, agriculture, drinks and construction.

Mr Clancy is a highly experienced board-level business leader and places particular emphasis on people management and development, strategic planning, creating strong relationships between businesses, and has experience in global business development.

The appointment comes at a crucial time for the Chamber as businesses across the North West face the full force of the COVID-19 crisis. 

Speaking after his appointment, Mr Clancy said:

“It’s a privilege to have been appointed Chief Executive of the Londonderry Chamber of Commerce. This is a wonderful opportunity to lead an organisation which represents some of Northern Ireland’s most innovative, creative, and successful businesses. The business community in the North West is filled with talented and inspiring business leaders and I look forward to working with them to create a stronger regional economy.

“This is, however, a very difficult time for businesses across the North West. The COVID-19 pandemic has already caused upheaval across all sectors, hundreds of businesses have closed their doors, and thousands of people are out of work. Now more than ever businesses need strong leadership, sound advice, and an extraordinary level of financial support to ensure they survive.

“My immediate priority is to help soften the blows that local businesses are experiencing at the moment by working with local representatives, the Executive, and government departments. Businesses, large and small, need strong and coherent guidance and leadership, and I will ensure that the Chamber will be available and accessible to support our members throughout this crisis.

“I am under no illusion as to the scale of the job at the moment but I am heartened by the measures already taken by the local business community to support their business colleagues, wider society, and those on the frontline of this crisis. Businesses in the North West have thrived before and will thrive again, and Chamber will be at the forefront in efforts to support them.” 

President of the Londonderry Chamber of Commerce, Redmond McFadden, also said:

“I am thrilled that we have appointed Paul as the Chamber’s new Chief Executive. Paul is an impressive and accomplished leader with over 20 years’ experience in leadership and management roles. The Chamber board looks forward to working closely with him to support our members and make the North West a vibrant place to live and do business. He has come on board at a crucial time for the Chamber, and his expertise and competencies will be vital in the weeks and months ahead.”

Prudent employers should plan for the worst - By Lisa Bryson, Partner, Employment and Immigration, Eversheds Sutherland Belfast

Lisa Bryson, Partner, Employment and Immigration, Eversheds Sutherland Belfast

We are living and working in unprecedented times. Employers in many industries are considering drastic decisions they would not have dreamed of a few days or weeks ago. And it seems that things will get worse before they start to get better. While businesses will hope for the best, it would be prudent to plan for the worst.

Last week the Government announced its recommendations to limit the spread of COVID-19 in the UK, including Northern Ireland. Alongside all of the guidance and steps we have already become very accustomed to, the key element of the next phase is to focus on ‘social distancing’.

In terms of business, the Government have asked for people to work from home where possible and for employers to support this. Of course, not all work or business can transition to remote working. Therefore, it is important that every business considers its core functions, the components of each part of the business and its own requirements, and to identify whether or not there are ways in which social distancing can be introduced in the workplace – staggered start and finish or lunch times, for example.

These unprecedented times will require communities to pull together and employers and employees to work in tandem to seek to find novel ways of weathering the COVID-19 storm together.

There is no doubt that difficult times lie ahead. And that employers will have to make some difficult decisions.

The timing of this health crisis coincides with the end of the financial year for many businesses and in turn decisions on salary increases and bonuses. In light of the situation and to reduce cost pressures, businesses may have to consider deferring such increases in the interim to assist with the longer-term sustainability of the business. If the business does ride out the storm then these increases can be introduced later.

Another potential consideration may be to seek volunteers for unpaid leave or a reduced working week. This would deliver some cost saving and may be a workable solution for some employees when the schools close. If it is apparent that the only alternative is potential job losses at a later stage, some employees just might be prepared to consider this. 

Temporary lay-offs and short-time working are other contractual alternatives that have already been implemented across some sectors in Northern Ireland. Unfortunately however, the last resort for some businesses may be the implementation of redundancies. Depending on the numbers, employers will be obliged to consult collectively with appropriate representatives of employees affected. If 20+ redundancies are proposed within a 90-day period, consultation should last for 30 days and if proposals impact 100+ people this consultation should last for 90 days in Northern Ireland. However, this consultation period can be dispensed with where “special circumstances” apply. While the test of what constitutes a special circumstance is difficult to meet, the current situation may arguably fall within the definition.

No employer wants to have to take any of these steps, but some industries already find themselves in the position of having no other option. With no end in sight, this inevitably means that some tough decisions are going to have to be made.

COVID-19 - New Guidance

• Prime Minister Boris Johnson has announced strict new measures to restrict the spread of COVID-19.

• From this evening people must stay at home except for shopping for basic necessities, daily exercise, any medical needs, and travelling to and from essential work.

• Shops selling non-essential goods will also be shut and public gatherings of more than two people who do not live together will be prohibited.

• If people do not adhere to these new rules, police will have the powers to enforce them through fines and dispersing gatherings.

• Other premises including libraries, playgrounds, outdoor gyms, and places of worship must close immediately also.

• All social events like weddings and baptisms will be banned also, except for funerals.

• These rules will be reviewed again in three weeks and will be relaxed “if the evidence shows we are able to.”

COVID-19 Round-up

• The First and deputy First Minister have told non-essential services and businesses to close down and to stay home. They urged businesses to allow their staff to work from home where possible. First Minister Arlene Foster warned that there will be a “wave of deaths” in NI if people do not follow social distancing advice.  

• Health Minister Robin Swann has said enforced social distancing is likely to be introduced soon. The matter will be discussed at this evening’s COBRA committee meeting. He has again urged people to adhere to social distancing advice and has warned that the impact of the virus could “dwarf the impact of the Troubles on our society.”

• Mr Swann has also introduced a Home Childcare scheme for key workers. Under the scheme, children of key workers will be temporarily matched with one daycare worker from the setting that they currently attend. The scheme will prioritise the needs of key workers with babies and toddlers.

• Sportswear manufacturer O’Neills has announced it has received orders to produce scrubs for health and social care trusts in NI.

• The Coronavirus Business Interruption Loan Scheme is now operational in NI with Danske Bank, Ulster Bank and Bank of Ireland participating. It will provide loans of up to £5m for small businesses experiencing cashflow problems.

• Northern Ireland’s health service is to access all hospital beds across the private sector in “not less than 3 months”. The Mater Hospital has also now been designated Belfast’s COVID-19 hospital and will close to walk-in admissions from 8am tomorrow morning.  

• The Emergency Coronavirus Bill was introduced to the House of Commons this afternoon and will go through all of its stages tonight, with successful progress of the bill almost certain, The bill gives the government emergency powers to ban large-scale events or gatherings; shut down premises; close borders; and detain individuals who are judged to be a risk of spreading the virus.

• The NI Assembly will debate a Legislative Consent Motion to endorse the emergency bill tomorrow. Follow the link for tomorrow’s order paper and the wording of the motion - http://www.niassembly.gov.uk/assembly-business/order-papers/session-2019-2020/24-march-2020/

Derry Chamber reacts to Chancellor's Coronavirus Job Retention Scheme

Derry Chamber President, Redmond McFadden

Reacting to the Chancellor’s announcement of the Coronavirus Job Retention Scheme, Londonderry Chamber of Commerce President Redmond McFadden said:

“This is a very welcome intervention by the UK Government which will help alleviate the stress and pressure on businesses and workers across the country. The Coronavirus Job Retention Scheme will help ease cash flow worries on businesses, large and small, by covering 80% of salaries up to £2500. It is excellent news that this will be backdated to 1 March and that there will be no limit to the amount of funding provided by the Treasury.

“The Chancellor’s message to the business community this afternoon was clear – do not permanently lay off your workers just yet. All furloughed and temporarily laid-off workers who are still on the pay roll will be eligible for this grant. This is an announcement which will ensure thousands of local workers will continue to be able to sustain their households, provide for themselves and their families, and will have a job to return to once this crisis is over.

“Additional measures concerning the deferral of VAT payments until the end of June, extending the interest-free period of the Business Coronavirus Interruption loans from six months to twelve months, and allowing self-employed people access to Universal Credit are also good news for businesses and are common sense approaches to this emergency.

“During this period of extreme uncertainty and upheaval, supportive measures like these will help prevent the local economy from collapse, relieve the concerns of workers and businesses alike, and help preserve tens of thousands of jobs.

“The Chamber is ready to assist those businesses who need support and guidance during this time and we urge them to contact us if they need clarity on the measures that have been announced.”

Hospitality Ulster Reacts to PM and Chancellor’s statement

Reacting to the statement by the Prime Minister and the measures laid out by the Chancellor of the Exchequer, Rishi Sunak, this evening, Colin Neill, Chief Executive, Hospitality Ulster said:

Colin Neill, Chief Executive, Hospitality Ulster

“We welcome the direction by the Prime Minister on closures. It’s not an easy thing to accept, but now we know where we stand and can start the process of full close from tonight.”

“We also welcome the suite of financial interventions that has been announced by the Chancellor which includes the new Coronavirus Job Retention Scheme that will be made available to any business with no limit on this fund. We now need to make sure that this emergency financial measure gets to our people as quickly as possible.”

“This is a comprehensive package on face value, and we hope that this has not come too late for many in our sector. The greater certainty that employers and employees alike have on the salary commitment through the wage protection scheme will reduce anxiety and the fear that people may not have been paid. This will save and retain jobs and businesses alike.”

“In only a matter of days our industry has been decimated with thousands of redundancies and temporary layoffs. This has been the biggest economic shock in living memory.”

“We now need to examine the detail in this package and ensure our sector can avail of as many of the measures as possible to save our sector.”

Brown O'Connor Communications: Breakdown of Chancellor’s Announcement

• The Chancellor, Rishi Sunak MP, held a press briefing this afternoon to outline the Government’s newest economic measures in response to the COVID-19 crisis. He said that the economic intervention to be introduced was unprecedented but necessary to save lives.

• He announced a Coronavirus Job Retention Scheme for all workers in the UK which will cover 80% of the salary of retained workers up to the threshold of £2,500 per month.

• Any employer in the UK will be able to contact HMRC to avail of this grant and it will cover wages backdated to 1 March. This will be open before the end of April for at least three months.

• The Business Interruption Scheme will be interest free for 12 months instead of the 6 months originally stated. These loans are available from Monday.

• The Chancellor also said that the next quarter of VAT payments for businesses would be deferred until the end of June. This is a direct injection of £30 Billion in cash to the economy.

• Universal Credit payments are to be increased by £1,000 for a year. Tax Credits will also be increased by £1,000 for a year.

• Minimum Income Floor will be suspended so that self-employed people can get Universal Credit equal to Statutory Sick Pay for employees.

• Self-Assessment payments will be deferred until January 2021.

• The Chancellor also announced that £1 Billion will go towards housing allowances which will aim to cover 30% of rents.  

• Prime Minister, Boris Johnson also said that cafes, restaurants, pubs must close tonight but that they can continue to provide a takeaway service. He also said that nightclubs, theatres, cinemas, gyms and leisure centres should also close.

Brown O’Connor Communications Weekly Look Ahead - Week Commencing 23 March 2020

COVID-19 Update

• Schools across the UK will now close due to the pandemic. It is very unlikely schools will return before the end of the academic year with A Level and GCSE exams cancelled.

• Health Minister Robin Swann announced on Thursday that testing capacity in NI will be expanded to around 800 tests a day, 880 nursing and midwifery students will be redeployed to clinical care, and 40 more ventilator units have been ordered.

• Mr Swann has said that the worst case scenario in NI could be as high as 9000 deaths. He has urged the public to take seriously social distancing advice, a measure which he claims can help reduce the peak by around 50% and can reduce deaths by up to a third.

• Community Pharmacy Northern Ireland (CPNI) has announced that planned industrial action has been halted to deal with the crisis, as pharmacists and the Department of Health have urged the public to treat healthcare workers with respect.

• Thousands of jobs in the hospitality sector have already been lost as bars, restaurants and hotels struggle. Manufacturing has also been severely hit with job losses at O’Neill’s in Strabane, MJM Marine in Newry and Mallaghan’s in Dungannon expected imminently as orders dry up. Over 170 businesses in the North West have also been forced to close their doors.

• The government announced a range of measures this week to support businesses. Finance Minister Conor Murphy announced there will be a rates ‘holiday’ for all businesses in NI between April and June, reducing rates by 25% in addition to any existing rates reliefs. Mr Murphy has also engaged with the Treasury to explore ways to support families and households throughout the crisis.

• The First and deputy First Ministers also unveiled measures to support businesses. These include an immediate grant of £10,000 to all small businesses who are eligible for the small business rates relief scheme, and an immediate grant of £25,000 for larger businesses in retail, tourism and hospitality with a rateable value of between £15,000 and £51,000.

• Chancellor Rishi Sunak unveiled a package of financial supports this week worth £330bn in total. NI received an extra £260m to support its responses to the outbreak. The Bank of England has also released £200bn in quantitative easing and cut interest rates to 0.1%.

• Speaker of the NI Assembly, Alex Maskey MLA, has announced a series of restrictions on Assembly business and procedures. These include the suspension of Private Members Motions until further notice, the suspension of Ministerial Oral Questions until 13 May, holding only one plenary session per week, and MLAs have been asked to refrain from tabling written questions.

• Irish Finance Minister Paschal Donohoe has warned that the Republic is at the centre of a “very significant economic shock”. Up to 140,000 people have already lost their jobs, with more expected. In a St Patrick’s Day address, An Taoiseach Leo Varadkar said they expect cases to reach 15,000 by the end of March.

Forward Look

• Economy Minister Diane Dodds MLA will brief the Stormont Economy Committee on Wednesday 25 March on the economic impact of COVID-19.

• Major NI events have been postponed or cancelled including the Balmoral Show, the North West 200, Belfast Marathon, Belfast Film Festival, and BelTech.

• The UK Government has outlined details of new emergency powers to contain the spread of the virus by publishing the Emergency Coronavirus Bill. It includes details for shutting down ports and airports; increasing the available health and social care workforce; banning large events and gatherings; supporting the food industry to maintain supplies and allowing workers to claim statutory sick pay from day one; and enabling the death management system to deal with increased demand.

• All stages of the Coronavirus Bill will take place on Monday 23 March in the House of Commons.

• Secretary of State for Northern Brandon Lewis MP will give evidence to the NI Affairs Committee for the first time since taking up the role on Wednesday 25 March.

Other Stories This Week

• The European Central Bank has launched an emergency €750bn package to ease the impact of the pandemic and stabilise the euro. It will buy government and company debt across the eurozone, including that of troubled Greece and Italy.

• Nobel Peace Prize laureate and peace activist Betty Williams has died. Ms Williams, who formed Peace People in 1976, died on Tuesday.

• Only a small number of Troubles killings will receive “full-blown” investigations under a new approach to dealing with the past. The plan, announced by the UK Government on Wednesday, would see the vast majority of almost 2000 unsolved cases closed and prevented in legislation from ever being re-opened.

Consultations

• Energy Strategy – Call for Evidence Department for the Economy. Deadline 20 March.

• Belfast Resilience Strategy Belfast City Council. Deadline 10 April.

• Belfast City Council Improvement Objectives 2020 – 21 Belfast City Council. Deadline 24 April.

• Consultation on pilot to instruct experts in the family proceedings court Department of Justice. Deadline 8 May.