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Chancellor Rishi Sunak has unveiled a new package of measures to support businesses affected by the coronavirus, including delaying changes to IR35 payroll legislation.
Speaking in Parliament last night, the measures unveiled by Sunak include:
- Government-backed guaranteed loans of £330bn will be made available to businesses from next week to help them pay salaries, suppliers and rent
- To access this funding, larger firms can use a new lending facility from the Bank of England with SMEs able to use the existing business interruption loan scheme which will now offer funding up to £5 million with no interest in the first six months.
- The government has invited industries to present their need for support and Build UK has confirmed that it will continue to do that on behalf of construction.
- To support individuals and families, mortgage lenders have agreed to offer a three-month mortgage ‘holiday’ and £1bn will be made available for vulnerable people.
- Changes to IR35 legislation, the off-payroll working rules, have been postponed by twelve months to 6 April 2021.
Commenting on the move to delay changes to IR35, Ged Mason, CEO of the Morson Group, said: “The Treasury’s decision to delay the introduction of IR35 reforms comes at a poignant time for UK industry and will see many businesses which rely on flexible talent and contractor populations take a sigh of relief. Along with other industry leaders, we’ve been actively lobbying MPs and Government bodies to ensure the reforms don’t inhibit flexible working, which is a major contributor to the economy. This delay is therefore a sensible move and shows the Government’s backing for UK enterprise by taking the necessary steps to protect businesses and the contingent workforces that they are often so reliant on.”
Meanwhile, all training at CITB’s National Construction Colleges has been cancelled with immediate effect and the colleges closed. Current and advance-booked courses during the closure can be rescheduled or refunded. All CITB Employer Roadshows have also been cancelled. Companies are being encouraged to continue employing any apprentices in the meantime, with CITB due update on what support it can offer shortly.
