The £1 billion Omicron enterprise measures are nothing however a gesture and ‘lip service’ to companies impacted by the Omicron ‘tidal wave’, say main tax and advisory agency Blick Rothenberg.
Nimesh Shah, CEO on the agency mentioned: “The restricted assist measures introduced by the Chancellor as we speak are a ‘drop in ocean’ when in comparison with the earlier authorities assist packages.”
He added: “The £6,000 per premises grant for eligible companies provides little or no and arguably companies have already misplaced greater than that in December, as authorities measures and bulletins round Omicron have led to mass cancellation of occasions and events within the run-up to Christmas.”
Companies within the hospitality and leisure sectors in England will probably be eligible for one-off grants of as much as £6,000 per premises and entry to a £100 million discretionary fund by means of native authorities to assist companies on different sectors, however that is actually not sufficient and is simply paying ‘lip service’ to enterprise who’ve been severely impacted this month.
Nimesh mentioned: “The federal government factors out that the enterprise charges aid and VAT discount measures for hospitality and tourism companies stay in place, however the function and design of those measures was to assist companies by means of restoration and to not take care of the present state of affairs which has come about shortly and unexpectedly.
“The message from the federal government is obvious with the pitiful assist introduced as we speak – that they wish to keep away from additional restrictions to maintain companies open, however the actuality is that the federal government are asking individuals to behave responsibly and avoiding social settings, that means enterprise revenues will probably be severely hit throughout a vital buying and selling interval.”
He added: “The Chancellor may have been a lot bolder as we speak with out hitting the Treasury coffers too laborious, by providing deferral for enterprise charges, VAT and taxes to assist money stream. While the re-introduction of the furlough scheme was unlikely, the hospitality sector can have no alternative however to chop jobs in the event that they proceed to see bookings drop-off and authorities ought to concentrate on that seemingly end result.”
Nimesh mentioned: “The federal government will wish to level to earlier substantial assist for enterprise, however they’re merely not accepting the harder surroundings the sector presently faces.
“If a circuit-breaker lockdown is put in place, the Chancellor has to present companies the readability now across the out there authorities assist so that companies can plan accordingly – as we speak’s announcement was a misplaced alternative to present that much-needed readability.”