COVID-19 Updates – week commencing 01/03/21
More updates of developments from the government and various links to interpretation and guidance.
Go to date:
1 March 2021 …
Tourism Alliance updates:
Northern Ireland Economic Recovery Action Plan
Northern Ireland has launched a £290m economic recovery plan which focuses on four key themes:
R&D and Innovation (£20m)
Highly Skilled and Agile Workforce (£50m)
Green Economy (£20m)
Investment, Trade and Exports (£200m)
There are a wide range of tourism-related action in the recovery plan, many of which would be worthy of consideration for inclusion in DCMS’s Recovery Plan, including:
Delivering the COVID Digital Innovation and Productivity Programme to support businesses across the tourism sector to enhance their digital capability.
Delivering Crisis Management and Turnaround Fund support for tourism businesses
Deliver a ‘Holiday at Home’ voucher campaign to stimulate demand from NI residents to staycation in NI in support of the tourism industry
Deliver an “Experience Development Programme” to provide grant funding for tourism experience providers to help develop their businesses
Accelerate the development of the Tourism Data Hub to support the industry with real time data to inform decision making.
Delivery of a Website Development Programme for tourism businesses to receive capital grants for the upgrading of their websites to make them bookable online.
Develop a sustainable regenerative Tourism Strategy for NI.
https://www.economy-ni.gov.uk/publications/economic-recovery-action-plan
“We’re Good to Go” Links With “Safe Travels”
Ahead of reopening, VisitBritain has linked it’s We’re Good to Go” consumer confidence scheme with the WTTC’s international “Safe Travels” scheme. This means that any business not already part of We’re Good To Go can apply to the scheme and indicate that you wish to use the additional global WTTC stamp.
Here’s the link to apply for the use of one or both marks
https://goodtogo.visitbritain.com/
Business Innovation Support Package
The Guidance on the Business Innovation Support package has been updated. Although applications for Continuity Grants and Loans have ended, there are still Business advisory support packages available for around 6,000 innovative high-growth-potential, high-growth and scaling SMEs over the next 2 years managed through Innovate UK EDGE. There are available to help businesses:
exploit innovation, intellectual property, and connections in the UK and abroad
enter new markets at home and abroad
access funding and finance and getting investment ready.
Further information on the support and how to apply is available on the following link
https://www.gov.uk/government/publications/access-coronovirus-business-innovation-support-package
Review of DMOs
DCMS has launched a review of DMOs, which will be led by Nick de Bois (VisitEngland Chairman) who will do this in an independent capacity with administrative support from DCMS and reporting directly to the Secretary of State. This review is extremely welcome and is something that we have been lobbying on for a number of years. One of the key things that we have learnt during the Coronavirus outbreak is that England needs a much more sustainable approach to sub-national tourism development and support going forward.
The review will examine the extent to which the current DMO landscape:
is economically efficient, effective and sustainable (with regard to funding, structure and performance)
best enables the government to meet its leisure and business tourism policy objectives at a national, regional and local level
engages within the wider local and regional economic landscape, and the current focus on English devolution and Levelling Up
The review will make recommendations on:
whether DMOs might be structured or funded differently, and if so how any proposals might maximise post-COVID-19 recovery and long-term success
what the role of DMOs should be, bearing in mind existing other local structures such as Local Enterprise Partnerships, Mayoral Combined Authorities, local authorities and other similar local/regional bodies, and where these might intersect
how DMOs should best engage with, and be engaged by, VisitEngland, VisitBritain and DCMS, as well as wider government/public bodies where relevant (e.g. Arts Council England; UK Sport)
DCMS will shortly be launching a written consultation process, to enable people to feed into the review
3 March 2021 …
Tourism Alliance updates:
Kick Start Scheme Update
The guidance on the kick Start Scheme has been updated again with more information on what businesses can spend the £1500 setup costs and employability support grant on. The funding is given for each person employed through the scheme and can be spent on:
training and employability support (provided by the employer, Kickstart gateway or another provider)
IT equipment and software
uniform or Personal Protective Equipment
There is also further detail on what happens if the placement leaves the job placement early. In this situation, the employer must tell DWP as soon as possible if the placement:
leaves their job placement before the end of the 6-month period
needs to temporarily leave their job placement (for example for special leave or coronavirus-related restrictions)
DWP may be able to extend the funding period if the young person has to temporarily stop working while if they leave permanently, DWP will pay the grant until the end of the month that they stopped working.
https://www.gov.uk/guidance/help-employers-apply-for-a-kickstart-scheme-grant-kickstart-gateway
Setting Up “Time to Pay” Self-Assessment Payments
HMRC’s guidance on self-assessment payments has been updated to say that “Time to Pay” arrangements can be set-up online for amounts up to £30,000 up to 60 days after 31 January 2021 without having to contact them. When you have filed your return you’ll need to wait at least 72 hours before you can set up your Time to Pay arrangement online.
Late payment penalties are charged when tax remains unpaid for 30 days, 6 months and 12 months after the payment due dates. You can avoid the penalties if you enter into a Time to Pay arrangement before they become due and you pay all the tax owing under that arrangement on time. For Self Assessment payments that were due on 31 January 2021, you will avoid the first late payment penalty if you set up a Time to Pay arrangement by 2 March 2021. The 6 month and 12 month penalties can be avoided if you pay all the tax owing under that arrangement on time.
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/self-assessment
Global Travel Taskforce
The Transport Secretary held the first meeting of the new Global Travel Taskforce today. This new iteration of the Taskforce is undertake one of the four reviews that the Prime Minister announced when he published the Road map on 22nd February. Specifically, the Taskforce has been asked to:
consider policy proposals to set out a possible pathway to safely reopen international travel, taking account of scientific and clinical data
in partnership with industry, develop an implementation plan for the adoption of any recommendations to enable government, industry and consumers to prepare for when any decisions are taken
consider how to implement recommendations from the previous Global Travel Taskforce, such as bubbles, to facilitate tourist and business travel
ensure that any shorter-term changes act as a bridge to longer-term objectives on delivering vaccine certification to facilitate travel (noting this work is being conducted in parallel) and global standardisation of border measures
The taskforce will report to the Prime Minister on 12 April with an implementation plan to follow.
Letter to Food, Drink and Environment Services
The Environment Secretary, George Eustice, has written to Food, Drink and Environmental Services businesses encouraging them to have their staff tested for coronavirus by registering for free testing kits provided by the government.
Budget update from Tourism Alliance:
General Economic Status
- 700,000 people have lost their jobs, the economy shrank by almost 10% last year
- OBR forecast is for GDP to grow 4% this year, then by 7.3% in 2022, and then 1.7%, 1.6% and 1.7% in the last three years of the forecast
- Unemployment predicted to peak at 6.5%
- The government is borrowing 17% of GDP this year
- Next year borrowing will be 10.3% of GDP
Coronavirus Support
VAT
- 5% rate extended for another six months followed by a 12.5% rate for a further six months
Business Rates
- 100% businesses rates holiday until June, followed by a two-thirds discount for the rest of the year.
- The discount is being capped at £2 million per business for properties that were required to be closed on 5 January 2021, or £105,000 per business for other eligible properties.
- The government will legislate to ensure that the business rates relief repayments that have been made by certain businesses are deductible for corporation tax and income tax purposes.
Furlough
- To be extended until the end of September at the 80% rate until July
- From July, the government will introduce an employer contribution towards the cost of unworked hours of 10% in July, 20% in August and 20% in September,
Restart Grants
- Non-essential retail businesses will receive grants of up to £6,000 per premises.
- Hospitality and leisure businesses will get grants of up to £18,000.
ARG
- An additional £425 million of discretionary business grant funding, on top of the £1.6 billion already allocated.
SEISS
- People whose turnover has fallen by 30% or more will continue to receive the full 80% grant.
- People whose turnover has fallen by the left the 30% will therefore have less need of taxpayer support, and will receive a 30% grant.
- The 4th grant will cover February to April, worth 80% of average trading profits up to £7,500.
- A 5th grant will be available from July.
Recovery Loan Scheme
- From 6 April 2021 the Recovery Loan Scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10 million
- The scheme will be open to all businesses, including those who have already received support under the existing COVID-19 guaranteed loan schemes
Support For Airports
- The government is renewing the Airports and Ground Operations Support Scheme for a further six months from the start of 2021-22. This will provide support for eligible businesses in England up to the equivalent of half of their business rates liabilities during 2021-22, subject to certain conditions and a cap per claimant of £4 million
Extend Zoo Animals Fund
- The government will extend the Zoo Animals Fund for a further three months until 30 June 2021.
Culture Recovery Fund
- The government will provide a further £300 million to extend the Culture Recovery Fund
National Museums and Cultural Bodies
- The government will provide £90 million for continued support for government-sponsored National Museums and cultural bodies in England.
Other Policies
Extended Loss Carry Back
- The trading loss carry-back rule will be temporarily extended from the existing one year to three years. This will be available for both incorporated and unincorporated businesses.
- Unincorporated businesses and companies that are not members of a corporate group will be able to obtain relief for up to £2 million of losses in each of 2020-21 and 2021-22
- Companies that are members of a corporate group will be able to obtain relief for up to £200,000 of losses in each of 2020-21 and 2021-22 without any group limitations
- Companies that are members of a corporate group will be able to obtain relief for up to £2 million of losses in each of 2020-21 and 2021-22, but subject to a £2 million cap across the group as a whole
Contactless Payment
- From today, the maximum amount that can be paid through contactless payment will be raised from £45 to £100
Apprenticeships
- Employers who provide trainees with work experience will continue to be funded at a rate of £1,000 per trainee.
- Employers who hire a new apprentice between 1 April 2021 and 30 September 2021 will receive £3,000 per new hire
Corporation Tax Rate
- This will increase to 25% on April 2023
- A Small Profits Rate of 19% will apply to businesses with a profit of over £50,000
- There will be a tapered rate between profits of £50,000 and £250,000
Super Investment Tax Deduction
- To encourage investment, from 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will benefit from a 130% first-year capital allowance. This upfront super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest,
Air Passenger Duty
- APD rates will increase in line with RPI from April 2022
Alcohol Duty
- No increases this year
Fuel Duty
- No increases this year
Gaming Duty
- The government will legislate in Finance Bill 2021 to raise the Gross Gaming Yield bandings for gaming duty in line with RPI.
Infrastructure Bank
- A UK Infrastructure Bank will be established in Leeds with £12bn.
Freeports Announced
- Eight Freeports announced. They will be in East Midlands Airport, Liverpool, Felixstowe, Humber, Plymouth, Thames, Teesside, and Solent
Levelling Up Fund
- The government is launching the prospectus for the £4.8 billion Levelling Up Fund today.
- The Fund will invest in infrastructure, including town centre and high street regeneration, local transport projects, and cultural and heritage assets
Community Ownership Fund
- a £150m fund will be set up to allow communities to take ownership of pubs, theatres, shops or sports clubs at risk of closure.
Community Renewal Fund
- The government is launching the prospectus for the £220 million UK Community Renewal Fun.
Help to Grow: Management
- The government will offer a new UK-wide management programme to upskill 30,000 SMEs in the UK over three years. The programme will be over 12 weeks, and 90% subsidised by government.
