King's Lynn BID on Chancellor's Budget Statement implications for West Norfolk

King's Lynn BID hosted a virtual Budget Briefing this afternoon to discuss the Chancellor's statement, and how it will directly affect businesses in West Norfolk.

The virtual event, which was held in partnership with Stephenson Smart and Kenneth Bush, provided an opportunity to raise questions on the Chancellor's Budget Statement and the implication for businesses.

West Norfolk MP James Wild said: "The chancellor was honest about the challenges but what didn’t happen was the immediate tax rises which were expected. I don’t think this is a softening up exercise, I wouldn't rule out other changes coming.

"The main thing at the moment is to get the economy restarted and I think the chancellor has shown the importance of getting fuel back in the tanks.

"There’s also the kick-start scheme, there’s a real concern to help young people who are suffering through high rates of unemployment. There’s a big focus on getting businesses back open so we can get people into new jobs.

"There’s a lot in this package and I think it has been better than people were expecting. I’m looking forward to enjoying a beer in a pub garden on April 12, and getting a haircut."

Focusing in on the grants, loans and tax plans and how these will affect West Norfolk's businesses.

Dan Jastrzebki, a chartered accountant and tax advisor at Stephenson Smart, said: "The self-employment income support scheme has been extended. A lot of newly self-employed people missed out on the last scheme but this will allow them to apply for it.

"Business rates relief is available for the hospitality and leisure sector. In the past year there has been 100 per cent relief for these businesses, this has been extended to June, then July-March, there’s a 60 per cent reduction available, so businesses will not be paying full rates until 2023."

He praised the Bounce Back Loan Scheme, which enables smaller businesses to access finance more quickly during the pandemic.

Dan said: "The Bounce Back Loans have been really successful, a quick way for businesses to get quick access to the funds they need to get back up and running. It’s been very well received.

"The Recovery Loan Scheme will be replacing this and is an 80 per cent backed scheme, the two different types of loan it will cover are standard loans and overdrafts."

Reduced VAT rates are set to continue with the option for businesses to further break down payments over longer periods.

Dan said: "Last year between March and June, any business with a VAT payment during that period could defer it until June this year.

"Businesses will have the option to pay back in interest free payments over several months which will be very helpful for cash flow over the coming year."

Claire Melton, partner at Stephenson Smart, spoke at the meeting on the topic of taxes. She said: "We are surprised not to have seen more tax increases but we can see why that is the case.

"We are going to have a second budget and we feel this could be the calm before the storm, we will watch to see what is announced. We don’t think it’s a coincidence the relief ends on 31st October."

She added: "The most exciting announcement was the super deduction which gives you not just 100 per cent tax relief, but 130 per cent tax relief - it’s absolutely fantastic but we don’t know enough about it at the moment."

The Chancellor's budget announcement included the extension of the furlough scheme to September.

Paul Croker, managing director at Kenneth Bush, said: "That position is going to continue through the months of April, May and June, On July 1, the maximum employees they will be able to claim is 70 per cent, then an employer will have to pay the additional 10 per cent to make it up to 80 per cent. In August, that figure will go down to 60 per cent.

"The idea is there will be this tapering of the scheme. The whole idea behind it is to gradually increase employer contribution and reduce the state contribution before the end of the scheme in September."

Providing advice for local businesses, Paul added: "If you furlough an employee, you need an agreement and written agreement to confirm the furlough arrangements, you must keep these records for five years in case of investigation by HMRC.

"Furloughed employees can work for another employer during this time. Furloughed employees can take holiday during furlough but they must be paid their normal rate."