Bosses plead for a business kickstart
CALL TO CHANCELLOR FOR BUDGET HELP
BUSINESS chiefs urged the Chancellor to use next month’s mini-Budget to “pump-prime” the economy.
The Institute of Directors called on Rishi Sunak to cut the cost of employing staff amid fears the ending of the coronavirus furlough scheme could trigger big job losses.
In a submission to the Treasury, the IoD suggested raising both the Employment Allowance and the threshold at which firms pay Employers’ National Insurance.
Other ideas include extending grants, widening the scope for research and development tax relief, and helping companies cope with debt repayments. Jonathan Geldart, IoD director general, said: “The July statement provides a perfect opportunity to pump-prime the economy for recovery. “The Government may want to hold back some ammunition until the autumn but directors have to make hiring and investment plans ahead of time.” In a separate letter to the Chancellor, the Federation of Small Businesses lobbied for back-to-work vouchers to cover the costs of safety adjustments as small firms reopen.
It also wants the two-metre social distancing rule reduced.
FSB national chairman Mike Cherry said: “The fundamental question facing small businesses today is – can I open in a way that’s both commercially viable and safe?”
A survey out today from the Recruitment and Employment Confederation found that business confidence in the economy had improved by 17 percentage points in the past month. But the challenges facing firms came in research from the CBI showing a record fall in manufacturing output in the past three
months.