COVID-19: Automotive Business Support

UK Government Update – 3 March

Coronavirus support extension announced in Budget

In the Chancellor’s Budget Statement, he confirmed the extension of the Coronavirus Job Retention Scheme (CJRS) and two further grants from the Self-Employed Income Support Scheme (SEISS). New Coronavirus business grant and loan schemes were also announced.

CJRS extension:

CJRS is extended for a further five months, from May until the end of September 2021. Furloughed workers in the UK will continue to receive 80% of their current salary for hours not worked, up to £2500 per month. NIC and pension contributions will continue to be paid by employers.

As the economy reopens and demand has had time to pick up, the Government will ask employers to make a small additional contribution of:

• From July - 10% towards the cost of paying for unworked hours.
• August & September - the employer contribution will increase to 20%.

Further information on the CJRS can be found here:
https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

SEISS extension:

To support the self-employed across the UK through the next stage of the pandemic, the government confirmed a fourth and fifth SEISS grant.

4th Grant - will cover the period February to April and can be claimed from late April. It will be worth 80% of three months’ average trading profits, capped at £7,500. Self-employed individuals must have filed a 2019-20 self-assessment tax return to be eligible for the fourth grant.
5th Grant - will cover May to September and can be claimed in late July. The value of the grant will be determined by a turnover test, to ensure that support is targeted at those who need it the most as the economy reopens. People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850.

Further information on the SEISS can be found here:
https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension

Recovery Loan Scheme (new):

The new Recovery Loan Scheme will be open to businesses of any size and will open once the existing COVID-19 loan schemes close. Once received, the finance can be used for any legitimate business purpose, including growth and investment.

The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses. The scheme launches on 6 April and is open until 31 December, subject to review. Loans will be available through a network of accredited lenders, whose names will be made public in due course.

The type of finance available:

• Term loans and overdrafts will be available between £25,001 and £10 million per business.
• Invoice finance and asset finance will be available between £1,000 and £10 million per business.

Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years. No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

Additional measures announced in the Budget:

Restart Grants (a £5 billion pot) - This new grant scheme will provide a one-off cash grant per premises:

• £6,000 per premises for non-essential retail, available from April when this sector of the economy can re-open.
• Up to £18,000 per premises for hospitality, accommodation, leisure, personal care and gym businesses, when they reopen later in the year.

Statutory Sick Pay (SSP) Rebate Scheme – Small and medium-sized employers across the UK will continue to be able to reclaim up to two weeks of eligible SSP costs per employee. This scheme is a temporary COVID-19 measure intended to support employers while levels of sickness absence are high. As with other business support schemes, the government will set out steps for closing this scheme in due course.

VAT Deferral New Payment Scheme – Any business that took advantage of the original VAT deferral on VAT returns from 20 March through to the end of June 2020 can now opt to use the VAT Deferral New Payment Scheme to pay that deferred VAT in up to eleven equal payments from March 2021, rather than one larger payment due by 31 March 2021, as originally announced.

Extended loss carry back for businesses – To help otherwise-viable UK businesses which have been pushed into a loss-making position, 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.

UK Government Update – 22 February

Roadmap to lifting lockdown across England

In a statement to the House of Commons, the Prime Minister set out the Government’s four step roadmap - ‘COVID-19 Response - Spring 2021’ - for lifting the COVID-19 restrictions across England. While the Devolved Administrations will undertake their own strategies to lifting lockdown measures, the UK Government is engaging with them to try and enable a similar level and pace of easing.

In his statement, the PM announced that non-essential retail, which includes car showrooms and dealerships, is not expected to open before 12 April (Step 2). You can read SMMT’s response here.

The roadmap outlines four steps for easing restrictions. Before proceeding to each next step, the Government will examine the data to assess the impact of previous easements. This assessment will be based on four tests which are:

• The vaccine deployment programme continues successfully.
• Evidence shows vaccines are sufficiently effective in reducing hospitalisations and deaths in those vaccinated.
• Infection rates do not risk a surge in hospitalisations which would put unsustainable pressure on the NHS.
• The assessment of risks is not fundamentally changed by new COVID-19 Variants of Concern.

The gap between the implementation of each step of the Government's four step plan is expected to be five weeks, to allow for the data to reflect the impact, as well as allowing for advance notice of changes.

Step 1

Key Dates - 8 March and 29 March

• Covers the reopening of all schools and higher education (8 March).
• Return of outdoor gatherings of either six people or two households (29 March).

Step 2

Key Date - 12 April

• Reopening of non-essential retail (including car showrooms and dealerships), hairdressers, gyms and public buildings like libraries and museums.
• Up to six people from separate households will be allowed to meet in beer gardens.
• Wider social contact rules will continue to apply in all settings - meaning no indoor mixing between different households will be allowed.

Step 3

Key Date - 17 May

• Outdoors - most social contact rules lifted, up to limit of 30 people.
• Mixing indoors allowed for two households, but rule-of-six for indoor hospitality and elsewhere.

Step 4

Key Date - 21 June

• All legal limits on social contact removed, with ambition to reopen final closed sectors of the economy such as nightclubs.
• Hope to lift restrictions on large events and performances.
• Hope to remove all limits on weddings and other "life events".

Programmes of Work:

The Government is establishing four programmes of work to consider different aspects of how the UK should handle COVID-19 from the summer onwards.

COVID status certification

• Vaccine passports: COVID status certification involves using testing or vaccination data to confirm in different settings that people have a lower risk of transmitting COVID-19 to others.
• Review: The Government will review whether COVID-status certification could play a role in reopening our economy, reducing restrictions on social contact and improving safety.
  • This review will assess the extent certification would be effective in reducing risk, and the potential uses to enable access to settings or a relaxation of COVID-secure mitigations.
• Timing: The Government will set out its conclusions in advance of Step 4 in order to inform the safe reopening of society and the economy.

Large events

• Pilots: Over the spring the Government will run a scientific Events Research Programme. This will include a series of pilots beginning in April using enhanced testing approaches and other measures to run events with larger crowd sizes and reduced social distancing to evaluate the outcomes.
• Timing: Depending on the outcome of this work, the Government hopes to be able to lift restrictions on these events and sectors as part of Step 4.

International travel

• Vaccine passport: Once more is known about the evidence of vaccines on transmission and their efficacy against new variants, the Government can look to introduce a system to allow vaccinated individuals to travel more freely internationally.
• Taskforce: The Department for Transport will lead a successor to the Global Travel Taskforce, with an ambition to develop a framework that can facilitate greater inbound and outbound travel as soon as the time is right.
• Timing: The Taskforce will report on 12 April, with recommendations aimed at facilitating a return to international travel as soon as is possible. The Government will determine when international travel should resume, which will be no earlier than Step 3. However, the Governments expects restrictions like those in place across the world are likely to continue for the near future.

Social distancing

• Review: Ahead of Step 4, as more is understood about the impact of vaccines on transmission and a far greater proportion of the population has been vaccinated, the Government will complete a review of social distancing measures and other long-term measures that have been put in place to limit transmission.
• Work from home: The review will also inform guidance on working from home - people should continue to work from home where they can until this review is complete

In terms of other next steps:

• MPs will vote on the regulation, that will enable this roadmap, in the coming weeks.
• The Government will also publish a plan for dealing with local outbreak and variants of concern next month.

UK Government Update – 15 January

Temporary closure of all UK travel corridors from Monday 18 January

At Friday’s Covid update press conference, the Prime Minister announced that the UK’s travel corridors will be suspended from 4am, Monday 18 January until Monday 15 February, when the measures will be reviewed.

This means that, from today (Monday 18 January):

• All travel corridors with the UK will be suspended – all international arrivals (includes British and Irish nationals) who have departed from or transited through any country outside the Common Travel Area in the previous 10 days will be required to both take a pre-departure test, and self-isolate immediately for 10 days on arrival.
• The government’s Test to Release scheme will remain in place, giving passengers the option to shorten the mandatory self-isolation period to as little as 5 days. However, they will still need to adhere to national restrictions in place upon release from self-isolation.
• A number of exemptions to the travel corridor policy - including the need to travel for business - will be suspended. The exemptions still in place include for specialist engineers and for those who work in the UK, but live outside the UK – travellers will be required to provide a negative Covid test before departure to the UK, but will not be required to self-isolate. Those business exemptions that have been suspended include, among others, for business directors whose visit will secure or create jobs / investment, and for journalists.
• This move will be supported by increased enforcement, both at the border and across the UK, with Border Force increasing the number of spot checks on passengers that have entered the country.

Scotland Update – 14 January

Scotland to allow click and collect operations to continue from outdoor vehicle lots

Further to yesterday’s update (13 January) that click and collect for non-essential retail is to be stopped in Scotland during its current lockdown (due to come into force from Saturday), we and the National Franchised Dealers Association (NFDA) have been in contact with Scottish Government officials to seek clarification on the current discrepancies in the Scottish guidance.

The Scottish Government has confirmed that from Saturday 16 January, when the new regulations come into force in Scotland, outdoor vehicle lots will be able to remain open in order to allow “collection of a purchased vehicle or for delivery or collection of a vehicle for repair, service or MOT”.

Under the current Regulations, outdoor car lots are listed amongst those businesses that are able to remain open in level 4, albeit "people should only leave their homes for an essential purpose”.

SMMT understands that the guidance and the FAQ guidance will be updated to reflect this clarification.

UK Government Update – 14 January

Mandatory COVID-19 testing for all travellers to the UK

The Department for Transport has published the full guidance on the new mandatory Covid-19 testing requirement for all travellers to the UK. This requirement will come into force from 4am on Monday 18 January 2021. Please note: it was due to come into effect from tomorrow (Friday 15 January), but due to delays in issuing the guidance, the start date has been pushed back.

The full guidance is available here: https://www.gov.uk/guidance/coronavirus-covid-19-testing-for-people-travelling-to-england

It includes information on:

• The mandatory test and when the test must be taken by
• Test providers and type of test accepted
• What the test result must include
• Exemptions – people who don’t need to take a test

Scottish Government Update – 13 January

Scotland to stop click and collect for non-essential retail

Today, First Minister Nicola Sturgeon has announced further measures to limit the spread of coronavirus (Covid-19).

From 00:01 Saturday 16 January, non-essential click and collect retail services will be prohibited in Level 4 areas and further changes will be put in place to how services open for essential purposes operate. Therefore, from Saturday click and collect will only be able to operate for essential and certain non-essential retail only. This means that, from Saturday, car showrooms and dealerships will not be allowed to offer click and collect services, but will still be allowed to deliver vehicles direct to customers.

The non-essential retailers which can continue to operate click and collect services are:

• clothing and footwear stores
• homeware stores
• garden centre/plant nurseries
• baby equipment shops
• electrical shops (including repairs)
• key cutting and shoe repairs
• bookstores

Timeslots will be required for collection and people should not enter a store to collect an item.

Online services for essential and non-essential goods, which are delivered to a person’s home or business, are permitted.

The First Minister reiterated that nobody who lives in a Level 4 area should leave or remain outside their home except for essential purposes.

In addition, working from home arrangements will be strengthened through updated statutory guidance. Working from home should now be the default position for all businesses and services, and only those who cannot do their job from home should be asked to go to the workplace.

Full guidance for businesses and individuals during Scotland’s level 4 lockdown is available here: https://www.gov.scot/publications/coronavirus-covid-19-stay-at-home-guidance/#full-history

UK Government Update – 12 January

BEIS / NHS Test & Trace introduces LFD testing in workplaces

Following an announcement by the UK Government that it is increasing Community Testing, the Department for Business (BEIS) and NHS Test & Trace has published guidance on how to introduce Lateral Flow Antigen testing into the workplace.

The guidance document is available at the link below:

https://content.govdelivery.com/attachments/UKDECC/2021/01/12/file_attachments/1645902/Annex%20Introduction%20to%20LFD%20Testing%20in%20the%20Workplace%2011%20January%202021.pdf

The guidance covers:

• The six steps of how to set up a test service for your employees
• The roles and responsibilities of the organisation and NHS Test & Trace
• An overview of the Lateral Flow Antigen test and how it works
• An overview of the information and training available to employers
• Information on DHSC’s Terms and Conditions for getting involved in the scheme
• Details on how to get involved

To find out more, please email employee.testing@beis.gov.uk to register your business’ interest and you will be invited to a webinar series to learn more.

Business Secretary issues letter of comfort for manufacturing

The Secretary of State for Business, Kwasi Kwarteng MP has issued a further letter of comfort to the manufacturing sector, commending its efforts during the Covid pandemic and the national lockdowns. This letter confirms that the manufacturing sector in England can remain open during the current lockdown and that employees may still travel to go to work.

A copy of the letter is available here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/951394/sos_letter_manufacturing_11_jan_2021.pdf

UK Government Update – 11 January

Mandatory COVID-19 testing introduced for all travellers to the UK

From 4am Friday 15 January, passengers arriving from all international destinations will be required to present a negative COVID-19 test result before departing for England.

In a statement to Parliament, Transport Minister Robert Courts said:

From 4am on 15 January, we will be introducing pre-departure testing requirements for all inbound passengers to England. Passengers arriving by ship, plane or train will have to take a test up to 3 days before departure and provide evidence of a negative result before they travel.

This will be an additional requirement that applies to all passengers, including those travelling from a travel corridor country, other than those on a very short list of exemptions. This extra layer of protection is in addition to existing self-isolation requirements.

We will establish the standards that tests must meet in regulations. This will include that the test must be of a diagnostic-standard test such as a polymerase chain reaction (PCR) test, and could in some cases include LAMP and lateral flow tests within set limits. We will provide clear guidance and advice to passengers regarding testing standards and capacity.

Guidance will be available to passengers and carriers on what to look for to assure tests and the results provided meet the standards required. We will keep test standards and innovative testing technologies under review.

In addition, we will also set out the information passengers will need to have with them at check-in and the UK border to show they have had a qualifying negative test. This will include set data fields which test result certificates must include. All information on test requirements will be made available to passengers and transport operators through guidance on GOV.UK.

The current advice for those across the UK remains that you must stay at home and not travel abroad unless it is for a permitted exempt reason. The requirements apply equally to visitors from other states and British Nationals, and carriers may deny boarding if passengers are not in receipt of a qualifying negative test. British Nationals that need consular assistance should contact the nearest consulate, embassy or high commission.

If British Nationals test positive for COVID-19 while abroad they should not travel and should follow the local relevant guidance on self-isolation.

Transport operators will be required to check that a passenger has proof of a negative test result before they board their flight, train or ferry, and may deny boarding where appropriate to reduce numbers of non-compliant individuals arriving in England. Border Force will also conduct further checks upon arrival. If a passenger arrives in England without a pre-departure negative test result they will be fined. We will amend the International Travel Regulations so that fines, starting at £500, can be levied on non-compliant passengers. Operators will also be fined for transporting non-compliant passengers.

Passengers travelling to England from the Common Travel Area (the United Kingdom, Ireland, Isle of Man, Jersey and Guernsey), will not be in scope of the regulations. Children under the age of 11 will also not be required to complete pre-departure testing.

There will be a very restricted number of exemptions, including hauliers to allow the free flow of freight, and air, international rail and maritime crew. Certain limited reasonable excuses for not undergoing testing will also be permitted, for example, lack of testing infrastructure in the departure country. This will apply to 3 overseas territories – St Helena, Ascension Island and the Falklands.

Arrivals from 3 additional countries will be considered to have a reasonable excuse not to comply due to lack of testing infrastructure. However, for these countries this will only apply for a specific, time limited window. This includes:

• Antigua and Barbuda – until 4am Thursday 21 January 2021
• St Lucia – until 4am Thursday 21 January 2021
• Barbados – until 4am Thursday 21 January 2021

If passengers are arriving from one of the above 3 countries after the time limited window has ended, they will be required to meet all pre-departure testing requirements.

Further details on exemptions and reasonable excuses will be set out in regulations and in guidance. We will keep exemptions and reasonable excuses under regular review. We will be making detailed guidance available to both passengers and transport operators to support the implementation of these changes.

Measures are likely to be in place until the end of the current lockdown, although a review will take place before the end of that period.

UK Government Updates – 5 January

England enters third national lockdown

On Monday night (4 January), the Prime Minister announced a third 'National Lockdown' in England with a clear stay-at-home message except for exceptional circumstances. These new measures entered force from 00:01, Tuesday 5 January. There is no anticipated easing of restrictions until 'after the February half-term', with speculation of a March easing 'more likely'.

The news release can be read here: https://www.gov.uk/government/news/prime-minister-announces-national-lockdown

The guidance on the lockdown measures is available here: https://www.gov.uk/guidance/national-lockdown-stay-at-home

Of specific interest is:

• Vehicle showrooms to be closed nationwide - click & collect, delivery, MOT and repair services permitted.
• Travel to your MOT is permitted.
• Jobs, such as manufacturing, which cannot be undertaken at home are permitted to continue.
• All schools and colleges will close and move to online learning - nursery/early years settings to remain open.

Please note these restrictions will enter into force before MPs vote on the new measures on Wednesday 6 January.

New Covid business grants for closed retail, hospitality and leisure premises

In response to the latest lockdown measures in England, Government is issuing one-off top up grants worth up to £9,000 per property for retail, hospitality and leisure businesses which are required to close. The grant is provided on a per-property basis and is expected to benefit over 600,000 business properties.

https://www.gov.uk/government/news/46-billion-in-new-lockdown-grants-to-support-businesses-and-protect-jobs

A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities.

The one-off top-ups will be granted to closed businesses as follows:

• £4,000 for businesses with a rateable value of £15,000 or under
• £6,000 for businesses with a rateable value between £15,000 and £51,000
• £9,000 for businesses with a rateable value of over £51,000

Business support is a devolved policy and therefore the responsibility of the devolved administrations, which will receive additional funding in the usual manner:

• the Scottish Government will receive £375 million
• the Welsh Government will receive £227 million
• the Northern Ireland Executive will receive £127 million

Scottish Government Update – 4 January

Mainland Scotland enters lockdown

From 00:01, Tuesday 5 January, mainland Scotland entered lockdown with a new legal requirement forbidding anyone from leaving their home except for essential purposes. Amongst the limited reasonable excuses to leave your home are provisions for caring, outdoor exercise and to go to work, but only if that work cannot be done from home. The new regulations apply to all parts of Scotland currently in level 4. The island areas currently in level 3 will remain there, but will be kept under review. The restrictions are expected to be in place for at least four weeks, but will be kept under review.

Read the full release here: https://www.gov.scot/news/scotland-in-lockdown/

Read the full guidance here: https://www.gov.scot/publications/coronavirus-covid-19-stay-at-home-guidance/

In a statement to Parliament, the First Minister said a steep increase in coronavirus (COVID-19) infections and the intensity of pressure on the NHS have created a race between the virus and the vaccines now coming online.

Other key changes include:

• changing the 6/2 rule to a 2/2 rule. From tomorrow, a maximum of two people from up to two households will be able to meet outdoors. Children aged 11 and under will not be counted in that limit.
• for everyone else – including 12 to 17 year olds - outdoor exercise or recreation should only take place in a way which is consistent with the 2/2 rule.
• under 12s will not count towards the 2/2 rule and will continue to be able to participate in organised activities outdoors.
• all schools to continue to use remote learning until the end of January, except in the case of vulnerable children and those of key workers.
• stronger guidance on working from home is reflected in new guidance for people who are shielding. Those who are shielding and who cannot work from home
• are now advised not to work. The Chief Medical Officer is writing to everyone who falls into this category.

The First Minister also told parliament that from Friday 8 January a number of other measures will be taken including:

• closing some additional premises, service providers and retailers. This would include showroom elements of larger retailers and ski centres.
• ending the 1m physical distancing exemption for workplace canteens.

SMMT will continue to provide further updates when they are available.

Trade Credit Reinsurance Scheme extended - 29 December

https://www.gov.uk/government/publications/trade-credit-reinsurance-scheme?utm_source=a8cecf44-bb2c-4764-8644-8496e97a5f07&utm_medium=email&utm_campaign=govuk-notifications&utm_content=daily

The scheme has been extended by 6 months to 30 June 2021 and approved under relevant state aid rules.

UK Government Update – 23 December

The Health Secretary has announced 'Tier' changes which will come into effect on Boxing Day (26 December).

Tier 4 measures currently include the closure of non-essential retail (including vehicle showrooms).
From 00:01 on Boxing Day:

Sussex, Oxfordshire, Suffolk, Norfolk and Cambridgeshire, those parts in Essex not already in tier four, Waverley in Surrey, and Hampshire - including Portsmouth and Southampton but with the exception of the New Forest - will be escalated to tier four.

Bristol, Gloucestershire, Somerset (including the North Somerset area), Swindon, the Isle of Wight, the New Forest and Northamptonshire, as well as Cheshire and Warrington, will be escalated to tier three.

Cornwall and Herefordshire will be escalated to tier two.

https://www.gov.uk/coronavirus

UK Government Update – 19 December

England introduces new Tier 4 Covid measures

This afternoon (Saturday 19 December), the Prime Minister has announced that London/South-East/East of England current Tier 3 locations will move to a new Tier 4 level of restrictions. The Prime Minister stated restrictions will follow 'November' rules and non-essential retail shall be closed as of ‘tomorrow morning’ (Sunday 20 December). This means that vehicle showrooms will be required to at close end of trading today, except for click & collect purposes. MOT, garages and repair services are able to remain open.

The PM's speech can be found here: https://www.gov.uk/government/speeches/prime-ministers-statement-on-coronavirus-covid-19-19-december-2020

Guidance for the new England Tier 4 can be found here: https://www.gov.uk/guidance/tier-4-stay-at-home

Important to Note:

• Travel between tiers for work purposes is permitted - please read the guidance for full advice.
• Other changes and further advice has been given in relation to the previously announced Christmas easing of restrictions. The PM was explicit in stating manufacturing should remain open.
• Tiers will be reviewed again on Wednesday 30 December.

Devolved Administrations Update – 19 December

Devolved Administrations restrict Christmas gatherings and implement stricter Covid rules

In light of rapidly increasing Covid transmission rates across the UK, the Devolved Administrations have imposed stricter Christmas restrictions and new Covid measures for the end of the year.

WALES
The First Minister of Wales confirmed today (19 December) that all of Wales will enter Level 4. Non-essential retail will close as of 'end of trading today'. Car Showrooms must close, but click and collect services may continue.

Read the full Statement here: https://gov.wales/first-minister-statement-19-december

Detail of restrictions: https://gov.wales/leaving-your-home-and-seeing-other-people-alert-level-4

SCOTLAND
The First Minister of Scotland confirmed today (19th December) that the Covid Protection level 4 (highest) measures will be implemented across all mainland Scotland and will come into force from 00:01 Boxing Day (except island communities, which will see level 3 & travel restrictions) for three weeks initially. No cross border travel except essential purposes, assessing international travel. Non-essential retail including car showrooms to close. Guidance indicates click & collect and outdoor retail is permitted. Car repair and MOT services including supply of parts can remain open.

For more information: https://www.gov.scot/binaries/content/documents/govscot/publications/strategy-plan/2020/10/covid-19-scotlands-strategic-framework/documents/level-4-measures/level-4-measures/govscot%3Adocument/level-4-measures.pdf

NORTHERN IRELAND
On 17 December, the Northern Ireland Executive agreed new lockdown measures, due to come into effect from 26 December. This lockdown is much stricter than the previous 2-week firebreak measures and will involve the closure of all non-essential retail, with click and collect services not permitted. This impacts car showrooms and dealerships, but service and repair are unaffected.

The new Covid-19 restrictions will take effect from 00:01 on 26 December 2020 and will be in place for six weeks, subject to review at four weeks.

In summary, the restrictions for the six-week period include:

• closure of hospitality and non-essential retail with a stricter demarcation between essential and non-essential retail than that deployed during the recent circuit breaker.
• Click and collect retail will not be permitted.

For more information: https://www.nidirect.gov.uk/articles/coronavirus-covid-19-regulations-guidance-what-restrictions-mean-you

UK Government Update – 17 December

Chancellor announces extension to CJRS and Coronavirus loan schemes

The Coronavirus Job Retention Scheme (CJRS or furlough scheme) has been extended until the end of April 2021. The Chancellor has also confirmed he would be extending the government-guaranteed Covid-19 business loan schemes until the end of March 2021. These had been due to close at the end of January.

For the CJRS, the government will continue to pay 80% of the salary of employees for hours not worked until the end of April, up to a maximum of £2,500 a month. Employers will only be required to pay wages, National Insurance Contributions (NICS) and pensions for hours worked; and NICS and pensions for hours not worked. The eligibility criteria for the UK-wide scheme will remain unchanged and these changes will continue to apply to all Devolved Administrations.

The loans extension covers the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme.

Read the full release here: https://www.gov.uk/government/news/chancellor-extends-furlough-and-loan-schemes

The Chancellor also confirmed the date of the Spring Budget Statement – Wednesday 3 March.

UK Government Update – 5 November

Chancellor extends CJRS to March 2021

This afternoon, the Chancellor of the Exchequer, Rishi Sunak MP announced the extension of the Coronavirus Job Retention Scheme (CJRS) to the end of March 2021. The CJRS will now provide employees with 80% of their current salary for hours not worked. There will be a review in January, to assess whether any changes to the contributions are required.

Updated guidance on the CJRS has also been published: https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

HMRC will publish details of employers who make claims under the extended CJRS scheme, starting from December. Full details will be included in full guidance which will be published on 10 November 2020.

The key elements of the Extended CJRS are detailed below, but the guidance provides more clarification on the calculation and application processes:

• Employers do not need to have used the CJRS previously.
• Employers across the UK can claim, whether their businesses are open or closed.
• Employers can claim for employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time
• Information (RTI) submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
• Employers will have flexibility to use the scheme for employees for any amount of time or shift pattern, furloughing employees on either a full-time or part-time basis, and will be able to vary the hours worked in agreement with the employee.
• As under the current CJRS rules, employees can be on any type of employment contract.
• For employees that meet the eligibility criteria, and were previously furloughed, employers must use the same calculations for calculating reference pay and usual hours as CJRS.
• For an employee who meets the criteria of the extended scheme but was not previously eligible for CJRS, the alternative calculations of reference pay and usual hours must be used. For all other employees, employers must use the CJRS calculations for calculating reference pay and usual hours.
• Employer contributions during the CJRS extension until January will be the same as in August 2020. This means that for hours not worked by their employee, employers will only be asked to cover National Insurance and employer pension contributions.
• Employers will have to pay the employee’s wages for the hours they work as normal, as well as employer National Insurance and employer pension contributions.

As well as extending the CJRS, the Self-Employment Income Support Scheme (SEISS) will be increased, with the third grant covering November to January calculated at 80% of average trading profits, up to a maximum of £7,500.

The Chancellor also announced an increase in the upfront guarantee of funding for the devolved administrations from £14 billion to £16 billion.

UK Government Update – 4 November

Legislation for Lockdown 2 in England published

The regulations for the second lockdown in England, due to come into force at 00:01 on Thursday 5 November, have been laid before Parliament under the Public Health (Control of Disease) Act 1984. The legislation is available here: https://www.legislation.gov.uk/uksi/2020/1200/pdfs/uksi_20201200_en.pdf

The legislation will be debated and voted on in the House of Commons and House of Lords today (Wednesday 4 November).

The key sections of the legislation for automotive businesses are:

• Page 31; Point 26: Closure of ‘Showrooms and other premises, including outdoor areas, used for the sale or hire of caravans, boats or any vehicle which can be propelled by mechanical means, and car washes’.
• Page 31; Points 39 & 40: ‘Petrol stations’ and ‘Car repair and MOT services’ can remain open.
• Page 32; Point 50: ‘Storage and distribution facilities, including delivery drop off or collection points, where the facilities are in the premises of a business included in this Part’ are permitted to remain open.

In line with the legislation, the Government has updated its guidance for individuals and business on the new measures: https://www.gov.uk/guidance/new-national-restrictions-from-5-november#history

SMMT is seeking clarification on a number of items, including ‘off-site storage and distribution facilities’ and ‘outdoors/off-site definition’. We will provide further updates in due course and any questions businesses have can continue to be sent to covid19@smmt.co.uk.

UK Government Update – 2 November

Prime Minister announces 4 week England lockdown

On Saturday evening (31 October) the Prime Minister gave a press conference alongside the Chief Medical Officer and Chief Scientific Adviser. The Prime Minister announced that England will enter a period of national lockdown restrictions from 00:01 Thursday 5 November until Wednesday 2 December. The key elements of these new lockdown restrictions are:

• People must stay at home – you can only leave home for education and work, for exercise and recreation outdoors, for medical reasons and to shop for food and essentials.
• People should work from home wherever that is practical and possible.
• You should avoid travelling in or out of your local area (except as detailed above), and you should look to reduce the number of journeys you make.
• Overnight stays and holidays away from primary residences will not be allowed. This includes holidays abroad and in the UK. It also means you cannot stay in a second home, if you own one, or staying with anyone you do not live with or are in a support bubble with.
• Alongside schools and universities, manufacturing and construction can remain open.
• Non-essential retail (this includes car showrooms and dealerships), leisure and entertainment will close.
• Pubs, bars and restaurants must close other than providing takeaway services.
• For non-essential retail, ‘Click and Collect’ and deliveries are still permitted.
• Government will extend the Coronavirus Job Retention Scheme (CJRS) through November to December. The Job Support Scheme has been paused and will not start in November, as was planned.

The CJRS will operate as thus:

• Starting from 5 November and ending on Wednesday 2 December.
• The extended CJRS will allow employers to bring furloughed employees back to work on a part time basis or furlough them full-time.
• Employers will only be asked to cover National Insurance and employer pension contributions.
• Employers will be able to claim 80% of an employee’s salary, up to a maximum of £2,500.
• To be eligible for this extension, employees must have been on the payroll by 30 October 2020, but they do not need to have been furloughed before.
• While the government updates the system, employers will submit their wage claim to the government, and be refunded afterwards. After that, they will be paid upfront to cover the cost.

In addition to access to the Extended CJRS, the government will make the following support available to firms:

• Up to £3,000 per month under the Local Restrictions Support Grant if their premises are forced to close.
• £1,000 for every furloughed employee kept on until at least the end of January.
• £1,500 for every out-of-work 16-24 year-old given a ''high quality'' six-month work placement.
• £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s
• A grant available to self-employed people affected by coronavirus has also been doubled to 40% of profits, with a maximum grant of £3,750 over a three-month period (this is for November to January, and a further three-month grant will be made for February to April – details TBA).

Next Steps

• The Government will set out these plans in Parliament later today (Monday 2 November), with a vote on Tuesday or Wednesday, and the new rules coming into force at 00:01 on Thursday 5 November.
• It is expected that the Government’s three-tiered Covid alert levels will come back into effect once the new national lockdown measures conclude in early December.

The Devolved Administrations

• As highlighted the PM’s national lockdown is for England only.
• In Scotland - the new Five Tier Covid Alert levels will come into effect today (Monday 2 November).
• In Wales - the current ‘fire-break’ lockdown will end on Monday 9 November.
• In Northern Ireland – the month long lockdown will end on Friday 13 November (operating since 16 October).

SMMT Activity

• SMMT is seeking urgent clarification from Government on the closure of vehicle showrooms, a range of business activities and regarding the application of the Extended CJRS.
• SMMT will look to update members directly, as well as its Covid-19 webpages, as clarification and further guidance is issued.

Welsh Government Update – 19 October

Wales to enter a two week ‘fire-break’ lockdown on Friday 23 October

Wales is to enter a national ‘fire-break’ lockdown, starting at 6pm on Friday 23 October and ending on Monday 9 November. It will apply to everyone living in Wales and will replace the local restrictions which are in force in some parts of the country.

The Welsh Government will provide a package of almost £300 million to support businesses, which will complement wage-support schemes available from the UK government.

An FAQ has been published to help individuals and businesses understand what is required during the lockdown: https://gov.wales/coronavirus-circuit-break-frequently-asked-questions. The Welsh Government has also stated it will publish a full list of businesses that are required to close temporarily. SMMT will update its website as soon as the details are published.

The key information relevant to automotive businesses, that SMMT has so far, is:

Business closures - All non-food retail, including car dealerships, must close. It appears that ‘Click and Collect’ services will only be allowed from businesses that are allowed to remain open. SMMT is seeking further clarity from Welsh Government officials, including on vehicle deliveries and collections.

Vehicle servicing and MOTs - if vehicle servicing is necessary and cannot reasonably be deferred until after the lockdown period, then this can continue. Routine services should be deferred. MOTs can and should still take place, however, if a MOT is not due during this lockdown period but an appointment is booked, a deferment should be considered.

Education & Childcare - primary schools will remain open other than during usual half term holidays. Secondary schools will re-open after the half-term for children in years seven and eight. Pupils will be able to come in to take exams, but other pupils will continue their learning from home for an extra week. Universities can continue to provide a combination of in person teaching and blended learning. Childcare can continue and you can travel to provide, access or receive childcare.

The First Minister of Wales, Mark Drakeford, said the fire-break will be short but sharp to have a maximum impact on the virus. During the two-week period:

• People must stay at home, except for very limited purposes, such as for exercise.
• People must work from home wherever possible;
• People must not visit other households or meet other people they do not live with either indoors and outdoors
• No gatherings will be allowed outdoors, such as Halloween or fireworks/Bonfire night or other organised activities
• All non-food retail, hospitality businesses, including cafes, restaurants and pubs (unless they provide take-away or delivery services), close contact services, such as hairdressers and beauticians, and events and tourism businesses, such as hotels must close
• Community centres, libraries and recycling centres will be required to close
• Face coverings must be worn in indoor public spaces, which remain open, including on public transport and in taxis.

During this time:

• Adults living alone or single parents will be able to join with one other household for support
• Primary and special schools will re-open as normal after half-term
• Secondary schools will re-open after the half-term for children in years seven and eight and most vulnerable children. Pupils will be able to come in to take exams but other pupils will continue their learning from home for an extra week.
• Universities will provide a blend of in-person and online learning
• Childcare settings will stay open as normal
• NHS and health services will continue to operate
• Local parks, playgrounds and outdoor gyms will remain open.

Following the end of the fire-break, a new set of national rules will be introduced, covering how people can meet and how the public sector and businesses operate.

Businesses affected by the firebreak will be supported with a new £300 million fund, which will open next week:

• Every business covered by the small business rates relief will receive a £1,000 payment.
• Small and medium-sized retail, leisure and hospitality businesses, which must close will receive a one-off payment of up to £5,000.
• There will also be additional discretionary grants and support for smaller businesses, which are struggling.
• The £80 million fund announced last week to help businesses develop in the longer term, will be increased to £100 million, which includes £20 million ring-fenced for tourism and hospitality.

Information on the range of support available to businesses in Wales is available here: https://gov.wales/business-and-employers-coronavirus.

Businesses will also be able to access the support available through the existing Job Retention Scheme or the new expanded Job Support Scheme. The First Minister has written to the Chancellor to ask him to give Welsh businesses early access to the new expanded Job Support Scheme from Friday. The Welsh Government has offered to pay the extra costs to the UK government scheme to ensure businesses can retain staff.

UK Government Update – 9 October

Chancellor of the Exchequer announces Local Furlough Scheme

Today, the Chancellor announced a targeted extension to the new Job Support Scheme. The Scheme will be expanded to support businesses across the UK required to close their premises due to coronavirus restrictions and will support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month. In addition, cash grants for businesses required to close in local lockdowns will also be increased to up to £3,000 per month.

Under the scheme, employers will not be required to contribute towards wages and only asked to cover NICS and pension contributions. It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution.

Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days. The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December.

The Government is expected to provide an update on national and local lockdown restrictions, including the introduction of a new Three Tier System, on Monday (12 October).

UK Government Update – 7 October

Government sets up Global Travel Taskforce

The Government has set up a Global Travel Taskforce to look at operationalising the research that has been ongoing towards a new testing regime for international visitors. The taskforce, which will be jointly chaired by the Secretaries of State for Transport and Health and Social Care, will also consider other options to boost safe and sustainable tourism and business travel. The taskforce is drawn from Government Departments and Agencies and will engage the devolved administrations.

Timing - The taskforce will report to the Prime Minister no later than early November, setting out recommendations for how the UK can support the recovery of international travel.

The taskforce’s work will include:

• considering how a testing regime for international arrivals could be implemented to boost safe travel to and from the UK;
• what steps we can take to facilitate business and tourist travel on a bilateral and global basis, through innovative testing models and other non-testing means;
• more broadly, what steps we can take to increase consumer confidence and reduce the barriers to a safe and sustainable recovery of international travel.

The ongoing travel corridor process and related policy will not be within scope of the taskforce. In its work, the taskforce will seek to consult representatives from:

• the transport industry, to discuss shared challenges, the value of the sector to the economy, and the future of international travel;
• international partners, to discuss different approaches to health measures at the border, and what standards and practices are needed to maintain safe international travel;
• the tourism sector and local business leaders, to consider the economic impact on domestic tourism, and how international travel can support economic recovery;
• the private testing sector, to consider capacity constraints, pricing, and how quickly testing capacity can be rolled out;
• academia and policy institutes to provide insight and innovative solutions to the challenges the sector is facing.

UK Government Update – 6 October

HM Treasury and HMRC publish full guidance for Job Retention Bonus and updated CJRS guidance

Job Retention Bonus (JRB)

The JRB will allow employers to claim a one-off payment of £1,000?for every eligible employee they have furloughed and claimed for through the Coronavirus Job Retention Scheme (CJRS) and kept continuously employed until at least 31 January 2021. Employers do not have to pay this money to their employee.

The full guidance can be found at https://www.gov.uk/guidance/check-if-you-can-claim-the-job-retention-bonus-from-15-february-2021

This guidance further sets out details of employees who can be claimed for and specific cases such as employees who have been transferred under TUPE and claiming for individuals who are not employees.

The guidance also sets the timeline for when the bonus can be claimed. Employers will be able to claim the bonus from 15 February until 31 March, after they submit PAYE information for the period to 5 February 2021.

Finally, the guidance sets out some technical examples regarding how the minimum income threshold criteria works in practice when determining eligibility for the JRB.

Coronavirus Job Retention Scheme

Updated CJRS guidance details how the scheme closes on 31 October and employers will need to make final claims on or before 30 November. They will not be able to submit or add to any claims after this date.

For more information, the full updated guidance can be found at https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

UK Government Update – 24 September

Government updates guidance on face covers for staff

Further to the Government’s announcement that, from Thursday 24 September, staff in retail and hospitality will be required to wear face covers, the Government has updated its guidance on the wearing of face covers. The key element of the updated guidance is that: “it will be compulsory for retail, leisure and hospitality staff to wear a face covering in areas that are open to the public and where they come or are likely to come within close contact of a member of the public”. The full text is detailed below along with the link to the Government's guidance.

In line with these new requirements, SMMT has updated the industry developed guidance for safe working in the automotive retail and aftermarket sectors. These updated guidance documents are available here:

Automotive Retail: https://www.smmt.co.uk/wp-content/uploads/sites/2/NFDA-SMMT-Industry-Guidance-COVID-19-Protective-Measures-for-Auto-Retail-280920.pdf

Automotive Aftermarket: https://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT_GEA_IAAF_IMI_SMTA_Industry-Guidance-COVID-19-Automotive-Aftermarket-Restart-280920.pdf

Government Guidance on use of face covers:

https://www.gov.uk/government/publications/face-coverings-when-to-wear-one-and-how-to-make-your-own/face-coverings-when-to-wear-one-and-how-to-make-your-own#face-coverings-at-work

Face coverings at work

The Department for Business, Energy and Industrial Strategy (BEIS) has provided detailed guidance for specific workplace settings. Employers must make sure that the risk assessment for their business addresses the risks of COVID-19 using BEIS guidance to inform decisions and control measures including close proximity working.

It is important to note that coronavirus (COVID-19) needs to be managed through a hierarchy or system of control including social distancing, high standards of hand hygiene, increased surface cleaning, fixed teams or partnering, and other measures such as using screens or barriers to separate people from each other.

These measures remain the best ways of managing risk in the workplace, but there are some circumstances when wearing a face covering may be marginally beneficial and a precautionary measure; this will largely be to protect others and not the wearer. Normal policies relating to occupational workwear and PPE will continue to apply.

Staff in indoor settings

Employees should continue to follow guidance from their employer based on a workplace health and safety assessment.

From 24 September, it will be compulsory for retail, leisure and hospitality staff to wear a face covering in areas that are open to the public and where they come or are likely to come within close contact of a member of the public. This includes shops, supermarkets, bars, pubs, restaurants, cafes, banks, estate agents, post offices and the public areas of hotels and hostels.

Please check sector specific guidance to see if this applies to you. Businesses are also subject to legal obligations to protect their staff under existing legislation. This includes taking appropriate steps to provide a safe working environment, which may include providing face coverings where appropriate, alongside other mitigation such as Perspex screens to separate workers from the public.

For other indoor settings, employers should assess the use of face coverings on a case by case basis depending on the workplace environment, other appropriate mitigations they have put in place and whether reasonable exemptions apply.

For recommendations and requirements in specific settings please check the government’s workplace settings guidance.

Key points from Chancellor’s ‘Winter Economy Plan’ – 24 September

Today, the Chancellor of the Exchequer provided an economic update, in which he set out the next stage of the Government’s strategy to protect jobs and businesses impacted by Covid-19. Below are the highlights from the Statement, along with links to his speech, the accompanying news article and the policy paper, which provides a bit more of the detail.

The Chancellor’s speech in full is available here: https://www.gov.uk/government/speeches/chancellor-of-the-exchequer-rishi-sunak-on-the-winter-economy-plan

The news release: ‘Winter Economy Plan’.

The policy paper supporting the Statement is available here: https://www.gov.uk/government/publications/winter-economy-plan/winter-economy-plan

New Job Support Scheme

• Following on from the CJRS, which will end in October.
• From 1 November, for the next six months, the Job Support Scheme (JSS) will protect viable jobs in businesses who are facing lower demand over the winter months due to COVID-19.
• Employees will have to work at least a third of normal hours and they will be paid as normal for those hours.
• The Government and employers will cover pay lost, therefore employees working 33% of their hours will receive at least 77% of their pay.
• The scheme is open to all employers with a UK bank account and a UK PAYE scheme.
• All Small and Medium-Sized Enterprises (SMEs) will be eligible.
• Large businesses will be required to demonstrate that their business has been adversely affected by COVID-19.
• All employers will be allowed to apply, even if they did not use the furlough scheme and firms can use it alongside the Job Retention Bonus.

Business loan schemes

• The application deadline for all coronavirus loan schemes – including the future fund - has been extended to 30 November ensuring even more businesses can benefit from Government-backed support.

Bounce Back Loan Scheme

• The Chancellor will introduce ‘Pay as you Grow’ to help with repayment of this loan.
• This means loans can be extended from six to ten years, almost halving the average monthly repayment.
• Businesses which are struggling can choose to make interest-only payments.
• Any business in difficulty can apply to suspend repayments altogether for up to six months.

Coronavirus Business Interruption Loan Scheme (CBILS)

• Lenders have been enabled to offer borrowers more time to make their repayments where needed, meaning loans can be extended from six to ten years.

Self-employment

• The Self-Employment Income Support Scheme (SEISS) will be extended on similar terms to the JSS.
• The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.
• The scheme will last for 6 months, from November 2020 to April 2021.
• The extension will be in the form of two taxable grants.
• The first grant will cover a three-month period from the start of November until the end of January. This initial grant will cover 20%of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
• The second grant will cover a three-month period from the start of February until the end of April. The government will review the level of the second grant and set this in due course.

Deferred VAT payments

• Businesses who deferred their VAT payments will no longer have to pay a lump sum at the end of March 2021.
• They will have the option of splitting it into smaller, interest free payments over the course of 11 months – which will benefit up to half a million businesses.
• Any of the self-assessed income taxpayers who need extra help, can also now extend their outstanding tax bill over 12 months from January 2021.

VAT cut

• The Government has extended the 15% VAT cut (from 20% to 5%) for the tourism and hospitality sectors to the end of March 2021.

Test and trace

• £12bn has now been spent on test and trace.

UK Government Update – 22 September

Prime Minister issues new measures to tackle second wave

Yesterday, in a statement to the House of Commons, and in a further address to the public, the Prime Minister set out the following new measures, which are to be introduced to help tackle the increasing rate of Covid-19 transmissions across the UK and England. In addition, the UK’s Covid-19 threat level has been returned to Level 4 – which means transmission is high or rising exponentially.

The new measures announced by the PM include:

• Office workers are once again encouraged to work from home – those who cannot undertake their jobs from home will still be able to travel to work. Schools, colleges and universities will remain open.
• The requirement to wear a face covering has been extended to staff working in hospitality and retail sectors – SMMT is seeking further guidance, but our current assessment is that this will include car showrooms and dealerships, as well as workshops and factors. A face cover must also be worn when travelling in a taxi or private hire car.
• In retail, leisure, tourism and other sectors, the Government’s Covid-secure guidelines will become legal obligations. Businesses will be fined and could be closed if they breach these rules. There will be increased fines for those not using face coverings as required and for breaking the rule of 6.
• Plans for trials to have the public return to sporting events and conference centres from 1 October have been paused.

In addition, on 20 September, the Prime Minister's Office announced a new package to support and enforce self-isolation (fines between £1,000 - £10,000), plus financial support for those on lower incomes who cannot work from home and have lost income as a result. Further information is available at: https://bit.ly/3ckZ3wR

Government’s Covid-19 App to launch on 24 September

The NHS and PHE Covid-19 App will launch on Thursday 24 September. Support information and resources that can be shared by email, hosted on websites or displayed at venues are available at: https://bit.ly/3iRHUxg and https://bit.ly/342pfJh

The new App delivers the following six key functions:

1. Trace - Get alerted if you’ve been near other app users who have tested positive for coronavirus.
2. Alert - Lets you know the level of coronavirus risk in your postcode district.
3. Check-in - Get alerted if you have recently visited a venue where you may have come into contact with coronavirus.
4. Symptoms - Check if you have coronavirus symptoms and see if you need to order a free test.
5. Test - Helps you book a test and get your result.
6. Isolate - Keep track of your self-isolation countdown and access relevant advice.

UK Government Update – 30 July

Extension of self-isolation period from 7 to 10 days

The self-isolation period has been extended to 10 days (from 7) for those in the community who have coronavirus (COVID-19) symptoms or a positive test result. This is currently for England, but the Devolved Administrations could well follow suit and updates from their respective Chief Medical Officers are expected shortly.

Read the update from the UK Chief Medical Officer: https://www.gov.uk/government/news/statement-from-the-uk-chief-medical-officers-on-extension-of-self-isolation-period-30-july-2020

New law to ensure furloughed employees receive full redundancy payments

Furloughed employees who are then made redundant will receive redundancy pay based on their normal wage, under new laws being brought in today (Thursday 30 July).

Read the press release: https://www.gov.uk/government/news/new-law-to-ensure-furloughed-employees-receive-full-redundancy-payments

Employees with more than 2 years’ continuous service who are made redundant are usually entitled to a statutory redundancy payment that is based on length of service, age and pay, up to a statutory maximum.

This new legislation, which will come into force from tomorrow (Friday 31 July), will ensure that employees who are furloughed receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.

These changes will also apply to Statutory Notice Pay, which is where employees must be given a notice period before their employment ends, varying from at least one week’s notice up to 12 weeks’ notice, depending on how long they have worked for their employer. During this notice period, employees must be paid.

This legislation will also ensure that notice pay is based on normal wages rather than their wages under the CJRS. Other changes coming into force will ensure basic awards for unfair dismissal cases are based on full pay rather than wages under the CJRS.

CBILS opened to more small businesses

HM Treasury has announced that changes to EU state aid rules, mean that businesses classed as undertakings in difficulty which have fewer than 50 employees and a turnover than less than £9m can apply to the Coronavirus Business Interruption Loan Scheme (CBILS).

Read the press release: https://www.gov.uk/government/news/more-businesses-set-to-benefit-from-government-loan-scheme

£20 million in new grants to support SME recovery

Small and medium sized businesses will be able to access a new £20 million grant pot, for grants of between £1,000 - £5,000 to help them acquire new technology and other equipment as well as professional, legal, financial or other advice to help them with their recovery from the coronavirus lockdown.

Read the press release: https://www.gov.uk/government/news/20-million-in-new-grants-to-boost-recovery-of-small-businesses

UK Government Update – 24 July

New face cover rules in England come into force

From today (Friday 24 July), face coverings must be worn in additional enclosed public spaces in England. As well as shops (which includes car showrooms and dealerships) and supermarkets, face coverings must be worn in banks, building societies and post offices.

Read the Government press release: https://www.gov.uk/government/news/face-coverings-mandatory-in-shops-supermarkets-shopping-centres-and-enclosed-transport-hubs-from-friday

Read the Government updated guidance on the wearing of face covers: https://www.gov.uk/government/publications/face-coverings-when-to-wear-one-and-how-to-make-your-own/face-coverings-when-to-wear-one-and-how-to-make-your-own#when-to-wear-a-face-covering

Under the new regulations, members of the public will need to wear face coverings – for example, a fabric covering, scarf or bandana – that covers the nose and mouth in additional enclosed public spaces, as well as frequent hand washing and careful social distancing.

It will be compulsory to wear a face covering when buying food and drink to take away from cafes and shops. If you are in a premises where you are able to sit down and consume food or drink that you have bought, then you can remove your face covering in order to eat and drink on-site.

Face coverings will not be mandatory for:

• anyone under the age of 11
• those with disabilities or certain health conditions, such as respiratory or cognitive impairments that make it difficult for them to wear a face covering

Anyone who doesn’t abide by the regulations – and is not exempt under one of the categories set out in the regulations – could face a fine by the police of up to £100, as is currently the case on public transport.

SMMT has updated its own safe working guidance for automotive retail and automotive aftermarket services. Businesses in these sectors are strongly advised to review their Covid Safe Risk Assessments, to maintain alignment with the new requirements.

NHS Test & Trace service in the workplace

The guidance on the NHS Test & Trace service for employers, businesses and workers has been updated this week. The update includes:

• redrafting for clarity
• a new section on collecting customer and visitor data for NHS Test & Trace
• additional information on if a worker develops symptoms and orders a test

The updated guidance can be found here: https://www.gov.uk/guidance/nhs-test-and-trace-workplace-guidance

Assets for Test & Trace can be found here: https://coronavirusresources.phe.gov.uk/Test-and-Trace/resources/

UK Government Update – 17 July

Face covers mandated for customers in car showrooms and dealerships from 24 July

The Cabinet Office has confirmed today that customers entering car showrooms, dealerships and auction houses will need to wear a face cover from 24 July, when the new regulation for shops and supermarkets comes into force. Employees are not required to wear face covers.

The list of premises covered under shops and branches is available here: https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19/shops-and-branches

SMMT has updated its guidance for automotive retail and aftermarket businesses, in light of this clarification.

Prime Minister announces relaxation of public transport and offices guidance (17 July)

At a press conference this morning, the PM confirmed that a new framework would be published next week to enable local authorities and national government to implement more targeted lockdowns, in response to further coronavirus outbreaks in local areas.

This framework will allow for local authorities to undertake targeted closure of:

• specific premises and types of business
• outdoor spaces and events

A framework for national government will allow for further targeted measures:

• requiring specific premises and types of business to close
• issue local stay-at-home orders
• issue travel restrictions in specific areas and limit public transport
  prevent outdoor events

Furthermore, from today (17 July) the Government’s guidance on using public transport will change to “use it”, but you may still consider using an alternative means of transport. From 1 August, updated guidance will be issued for businesses to enable them to bring staff back to offices, in a COVID secure manner. Businesses should consult closely with employees on any measures.

In September, all schools will reopen to all age groups and work is being undertaken to enable universities to re-open as far as possible.

In October, Government is planning to allow business conferences and other indoor events to start again.

In November, it is hoped to allow more close contact for family and friends, in time for Christmas.

The PM also announced a further £3bn for the NHS, helping it to prepare for winter. This includes enabling the Nightingale units to stay in situ until March 2021. Antigen testing capacity will also be increased, with a target of 500,000 tests by October.

UK Government Update – 14 July

England makes wearing a face cover in shops and supermarkets mandatory from 24 July

From 24 July, it will become mandatory for customers to wear a face cover when in a shop or supermarket in England. The Health Secretary, Matt Hancock, made the announcement in Parliament this afternoon. We are awaiting publication of the formal guidance, to understand if car showrooms, dealerships and other automotive settings will be required to implement this new rule (as is the case in Scotland from 10 July).

Employees will not be required to wear a face cover and exemptions will be made for young children and those with a variety of medical conditions (as per the requirements around wearing face covers on public transport). The liability will lie with the individuals and shops will be allowed to refuse entry or call the police if necessary. There will be a £100 fine for those refusing to follow the legislation.

Once guidance is published, SMMT will make any necessary changes to its own safe working guidance for automotive retail etc.

UK Government Update – 08 July

Chancellor of the Exchequer sets out further support to protect jobs

In a statement on the UK economy, the Chancellor of the Exchequer, Rishi Sunak, announced a three-point job plan to protect, support and create jobs. A press release and supporting document have been published, with more detailed notes and guidance to follow.

Read the SMMT’s response to the Chancellor’s statement.

Included in the supporting document and specific to automotive was:

Automotive Transformation Fund:

• Building on the announcement last year of up to £1 billion of additional funding to develop and embed the next generation of cutting-edge automotive technologies, the government is making £10 million of funding available immediately for the first wave of innovative R&D projects to scale up manufacturing of the latest technology in batteries, motors, electronics and fuel cells.
• The government is also calling upon industry to put forward investment proposals for the UK’s first ‘gigafactory’ and supporting supply chains to mass manufacture cutting-edge batteries for the next generation of electric vehicles, as well as for other strategic electric vehicle technologies.

Announcements in the Chancellor’s statement:

Jobs Retention Scheme:

• The Chancellor defended his decision for the furlough scheme to end in October, saying it is in no one’s interest for the scheme to continue.
• However, the Government is introducing a Jobs Retention Bonus for employers that bring back employees from furlough and retain their employment until January.
• This will be £1,000 per employee for employees earning £520 per month until January 2021.

Kickstart scheme:

• Government will pay young people’s (aged 16-24) wages for 6 months plus an amount to cover overheads, worth around £6,500 per young person.
• Employers can apply to be part of the scheme from next month.
• There will be an initial £2bn for the scheme, and there will be no cap on the number of places available.

Traineeships:

• Government will pay employers £1,000 to take on new trainees.

Careers advice:

• There will be more funding for careers advisers, and the number of work coaches in job centres will be doubled.
• There will be an extra £1bn for DWP to support people back to work.

Apprenticeships:

• For the next 6 months Government will pay employers to create new apprenticeships, at £2,000 per apprenticeship.
• Government will introduce a new bonus or £1,500 for businesses to hire apprenticeships aged 25 and over.

Additional measures to support the UK economy and specific sectors included a new £2bn Green Homes Grant; Stamp duty is being cut for transactions below £500,000, until 31 March 2021; VAT will be cut for food, accommodation and attractions from 20% to 5%, until January 2021; and for August, everyone in the UK will be given an ‘Eat Out to Help Out’ discount - meals eaten at participating restaurants, Monday-Wednesday, will be given the discount worth up to £10 per head (including children).

UK Government Update – 03 July

UK quarantine measures lifted for lower risk countries

Passengers returning or visiting from certain destinations, which pose a reduced risk to the public health of UK citizens, including France, Spain, Germany and Italy, will no longer need to self-isolate when arriving in England.

List of travel corridor countries.

The full news story can be found here.

DfT’s guidance, including the current list of exempted countries, is available here.

FCO guidance, including the current list of exempted countries and respective travel advice, is available here.

From 10 July 2020 you will not have to self-isolate when you arrive in England, if you:

• are travelling or returning from one of the travel corridor countries
• have not been to or stopped in a country that’s not on the travel corridor list in the previous 14 day

This applies to all travel to England, by train, ferry, coach, air or any other route.

If you have been to or stopped in a country that’s not on the travel corridor list you will have to self-isolate until 14 days have passed since you left that country. You will have to comply with coronavirus requirements in the country you travel to. This may include self-isolating or providing your details to local authorities.

Information for travel into Scotland, Wales and Northern Ireland will be published in due course by the Devolved Administrations.

Scottish Government Update – 03 July

Scotland introduces mandatory wearing of face cover in car showrooms from 10 July

As updated yesterday, Scotland will introduce this requirement for all retail settings from 10 July. Scottish Government officials have confirmed that employees and customers in car showrooms and dealerships will be required to wear a face cover, with exemptions for children under 5 and people with certain medical conditions.

Scottish Government will publish further guidance in due course.

Local Government Update – 03 July

Leicester coronavirus lockdown – clarification for car showrooms

Following confusion during the week, regarding the re-imposed lockdown in Leicester, SMMT sought and has received clarification by the UK Cabinet Office of the following:

Car showrooms are allowed to stay open. Please see Schedule 3 Part 3 section 58 refers to showrooms.  They are specifically excluded from Regulation 4(1). http://www.legislation.gov.uk/uksi/2020/685/contents/made

Schedule 3 Part 3 lists the businesses that are allowed to remain open. Amongst the supermarkets, vets, banks and garden centres(!) etc, it lists:

58. Showrooms and other premises, including outdoor areas, used for the sale or hire of caravans, boats, or any vehicles which can be propelled by mechanical means.

Car repair and MOT services are also allowed to remain open.

Cabinet Office is engaging with Leicester City Council on this matter to ensure consistency of message to public and business alike.

UK Government Update – 29 June

Mandatory MOT testing reintroduced from August

Roads Minister Baroness Vere announced that mandatory MOT testing is to be reintroduced from 1 August 2020 as COVID-19 restrictions begin to be eased. Drivers with an MOT due date before 1 August will still receive a 6-month exemption from testing. However, all vehicles must continue to be properly maintained and kept in a roadworthy condition.

SMMT statement in response to the announcement:

SMMT has been in regular discussion with government about lifting the six-month MOT extension, so it is welcome news that the provision will end on 1 August. While it is reassuring that many vehicles were tested on their original due date during lockdown, road traffic levels are rising and millions of vehicles, many of which have been sitting idle for weeks, now have deferred test dates. It is critical, therefore, to ensure that the upcoming bow-wave in demand for testing, service and repair can be managed effectively to keep vehicles safe and ensure consumers and keyworkers, in particular, are not inconvenienced. Motorists can be reassured that garages have appropriate social distancing and hygiene measures in place and can offer vehicle collections and deliveries to help the most vulnerable in society.

The Corporate Insolvency and Governance Act

The Corporate Insolvency and Governance Bill received royal assent on 25 June and is now an Act. The measures in this Act will relieve the burden on businesses during the coronavirus (COVID-19) outbreak and allow them to focus all their efforts on continuing to operate.

Read the press release: https://www.gov.uk/government/news/corporate-insolvency-and-governance-bill-receives-royal-assent

Read the Act: http://www.legislation.gov.uk/ukpga/2020/12/contents/enacted/data.htm

Some of the measures in the Act came into effect immediately on Friday 26 June. Other measures came into effect on Saturday 27 June when the secondary legislation came into force.

The Act:

• introduces temporary easements for Annual General Meetings (AGMs) and filing requirements for public limited companies (PLCs)
• introduces new corporate restructuring tools to the insolvency regime to give companies the time they need to maximise their chance of survival
• emporarily suspends parts of insolvency law to support directors during this difficult time

The government has published detailed guidance on the changes that came into effect on Friday 26 June. This includes changes for PLCs with an accounts filing deadline between 26 March 2020 and 29 September 2020.

Government will publish more guidance for private companies and other company types in due course.

UK Government Update – 23 June

PM announces easing of lockdown restrictions and 2-metre social distancing rule

Today, in a statement to the House of Commons, Prime Minister Boris Johnson said the Government does not “currently” believe that there is a risk of a second peak of infections that would overwhelm the NHS, and the Government’s five tests for easing lockdown continue to be met.

The Press Release is available here and the PM’s Statement to the House is available here. The PM set out a new range of relaxations (in England only), set to come into place on 4 July, including the opening of hospitality venues and hairdressers. He also provided an update on the two metre social distancing rule:

• Two-metre rule: The two-metre social distancing rule will be reduced to ‘one-metre plus’ from 4 July. This applies to all situations both indoors and outdoors, regardless of sector. Johnson said that remaining 1 metre apart - while taking mitigations to reduce risks of transmission such as avoiding face-to-face seating, improving ventilation systems, closing non-essential social spaces, and changing shift patterns - would make the 1-metre rule “broadly equivalent” to the current 2 metre rule. A summary of the review will be published later this week with guidance on mitigations also set to be published.

Welsh Government Update – 19 June

Wales allows car showrooms to open from Monday 22 June

Welsh First Minister Mark Drakeford has announced that non-essential retail, which includes car showrooms and dealerships, can open from Monday (22 June).

Other easements include:

• Family visits beyond five miles will be legal from Monday, if individuals have concerns about well-being
• The tourism industry - self-contained accommodation such as caravans and cottages – will be able to take bookings from 13 July
• Outdoor courts for non-contact sports, such as tennis, can reopen
• Schools will reopen on 29 June.

Read the full update here: https://gov.wales/first-minister-announces-further-steps-to-unlock-wales

In addition, Wales' coronavirus travel restrictions will be lifted from 6 July so people can "travel as far as they like for all purposes". People will be able to travel into and around Wales from that date, as long as coronavirus is still under control.

At the next review on 9 July, the Welsh Government will consider a range of specific options for opening:

• Self-contained holiday accommodation
• Personal care services, such as hairdressing and beauty, by appointment.

Discussions will also be held with the hospitality sector about the potential phased reopening of pubs, cafes and restaurants while maintaining strict social distancing.

Scottish Government Update – 18 June

Scotland starts moving to Phase 2 – non-essential retail to open

Scottish First Minister Nicola Sturgeon confirmed today that Scotland will start a staged approach to measures in Phase 2 of its roadmap to easing lockdown measures. Importantly, this means that from Monday 29 June the following businesses may re-open, subject to implementing the necessary safe workplace guidance:

Indoor (non-office) workplaces - includes factories, warehouses, labs and research facilities.

• Street-access retail – this includes car showrooms and dealerships (interiors of shopping centres / malls remain closed for non-essential shops until Phase 3).
• Outdoor markets.

From Monday 22 June, face coverings will become mandatory on public transport (as in England).

An update on remaining Phase 2 changes will be made on Thursday 2 July. The next official review date in Scotland is 9 July.

Further easements of Scotland’s lockdown measures were announced.

UK Government Update – 16 June

Business Secretary chairs series of economic recovery roundtables

Business Secretary Alok Sharma chaired a series of economic recovery roundtables last week, which brought together some businesses, their representative organisations, regulators and leading academic figures.

The members of each recovery working group are listed in the link above, along with the series of questions on what measures are necessary to support the economic recovery, which will be fed directly into the Government’s work on stimulating growth. The Department has also invited written submissions from other interested parties.

SMMT sits on the Green Recovery (Net Zero WG) and will be providing sector specific input to this piece of work. The other 4 x Roundtables / WGs are:

• BEIS Recovery Roundtable – accelerating innovation
• BEIS Recovery Roundtable – attracting investment
• BEIS Recovery Roundtable – levelling up
• BEIS Recovery Roundtable – start and scale

UK Government Update – 15 June

PM commissions review of 2 metre rule

Yesterday, the Prime Minister announced that he has launched a review of the 2-metre social distancing rule's economic impact, stating a change would be safer as infections fall. On the Andrew Marr show yesterday, the Chancellor Rishi Sunak said that “everyone would like to see it reduce from an economic perspective” and that it was time for a “fresh look” at the social-distancing guidance.

A No.10 spokesperson advised that this review will be completed in the “coming weeks”, but was unable to confirm if it will be done by 4 July, the target date for allowing hospitality businesses (e.g. bars and restaurants) to open.

HMT publishes updated guidance on Coronavirus Job Retention Scheme (CJRS)

HM Treasury has published updated detailed guidance on the CJRS to confirm:

• How employers can bring previously furloughed employees back to work part-time from 1 July (known as flexible furloughing) and how many employees they can claim for in any one claim.
• How to claim, and the information employers will need to do so.
• Details of calculating claim amounts.
• More information on amending claims.

Last week, the Chancellor announced that parents returning from maternity, paternity, shared parental, adoption and parental bereavement leave after the 10 June are exempt from the cut-off date for new entrants. This applies to employers who have previously submitted a claim for any other employee (between 1 March and 30 June). Employees need to have started the leave before 10 June and are returning after 10 June and they must be on their employers’ PAYE payroll on or before 19 March 2020. This is also covered in the updated guidance.

UK Government Updates – 4 June

No.10 Press Briefing – use of face coverings on public transport to be mandatory

At the daily No.10 Coronavirus Press Briefing (Thursday 4 June), Transport Secretary Grant Shapps announced that, from Monday 15 June, it will become mandatory to use a face mask when using any form of public transport. This is to coincide with the expected increased use of public transport when further easing of lockdown measures occur, with more non-essential retail opening and a return to school for some secondary school pupils.

This measure is a condition of travel and is being introduced in England. The Government is working with the Devolved Administrations to enact this measures across the whole of the UK.

Guidance for travellers exempt from UK quarantine rules

The Home Office has published guidance which explains who will be exempt from new English border rules introduced due to coronavirus. The rules will apply to travellers to the UK from 8 June 2020.

The full list of exemptions and guidance is available here: https://www.gov.uk/government/publications/coronavirus-covid-19-travellers-exempt-from-uk-border-rules/coronavirus-covid-19-travellers-exempt-from-uk-border-rules

Some travellers will be exempt from new English border rules as set out in the Health Protection (Coronavirus, International Travel) Regulations 2020. This means they may not need to provide their journey or contact details or self-isolate for 14 days after they arrive in England. Similar rules may apply across Northern Ireland, Scotland and Wales.

Government announces £10bn guarantee for trade credit insurance

The Government has announced that trade credit insurance will receive up to £10bn of Government guarantees.

The Trade Credit Reinsurance Scheme will see the vast majority of trade credit insurance coverage maintained across the UK. The scheme is available on a temporary basis for nine months, backdated to 1 April 2020, and running until 31 December 2020, with the potential for extension if required.

The scheme will be followed by a review of the trade credit reinsurance market.

UK Government Update – 29 May

Chancellor announces new details on CJRS and SEISS

The Chancellor of the Exchequer Rishi Sunak has announced the following changes to the Coronavirus Job Retention Scheme (CJRS) and the Self-Employed Income Support Scheme (SEISS).

Full release is available here: https://www.gov.uk/government/news/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps

CJRS:

• In June and July, the scheme will continue as normal – Government providing 80% of an employee’s salary up to maximum of £2,500 per month
• In August the Government will continue to cover 80%, but employers will be required to cover National Insurance and pension contributions
• In September, the Government contribution will decrease to 70%, with employers required to pay 10%
• In October, the Government contribution will decrease to 60%, with employers required to pay 20%
• CJRS will become fully flexible from 1 July (a month earlier than previously announced), e.g. an employee can be brought back to work for 2 days, with the employer paying for those, then furloughed for 3 days, with CJRS covering those
• When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week, for grants to be calculated accurately across working patterns
• The scheme will close in October

In order for the new “flexible” CJRS to come online, claims from July onwards will be restricted to employers currently using the scheme and previously furloughed employees. The scheme will close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.

SEISS

This will open again for applications in August and will operate as before, providing a one-off payment of 3 months’ average income, but at 70% not 80%, up to a maximum payment of £6,570.

UK Government Update – 25 May

Car Showrooms to open from 1 June

The Prime Minister has announced that Car Showrooms (in England only) will be able to be open from Monday 1 June, with other 'non-essential' retail to open from 15 June:

https://www.gov.uk/government/news/prime-minister-sets-out-timeline-for-retail-to-reopen-in-june

Businesses will only be able to open from these dates once they have completed a risk assessment, in consultation with trade union representatives or workers, and are confident they are managing the risks. They must have taken the necessary steps to become COVID-19 secure in line with the current Health and Safety legislation.

The Government has updated its guidance on working safely in shops and branches: https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19/shops-and-branches

SMMT’s safe working guidance for automotive retail is available to view and download here: https://www.smmt.co.uk/wp-content/uploads/sites/2/NFDA-SMMT-Industry-Guidance-COVID-19-Protective-Measures-for-Auto-Retail.pdf

UK Government Update – 22 May

UK COVID-19 quarantine measures come into effect from 8 June

From the 8 June the Government will introduce a requirement for all visitors to the UK to undertake a 14-day self-isolation period. The new regime will be in place across the United Kingdom, although enforcement measures will be set individually by the Devolved Administrations.

There will be limited exemptions and a full list will be published on gov.uk in due course. They include:

• road haulage and freight workers, to ensure the supply of goods is not impacted
• medical professionals who are travelling to help with the fight against coronavirus
• anyone moving from within the Common Travel Area, covering Ireland, the Channel Islands and the Isle of Man
• Seasonal Agricultural Workers who will self-isolate on the property where they are working

The full list of exemptions is published here: https://www.gov.uk/government/publications/coronavirus-covid-19-travellers-exempt-from-uk-border-rules

These measures will be subject to review every three weeks, to ensure they are in line with the latest scientific evidence and remain effective and necessary.

The government will continue to look at further options as it moves forward and these will include air bridges - agreements between countries who both have low transmission rates to recognise each other’s departure screening measures for passengers and removing the need for quarantine measures for incoming passengers.

Read the full announcement here: https://www.gov.uk/government/news/home-secretary-announces-new-public-health-measures-for-all-uk-arrivals

UK Government Update – Business Support – 19 May

Larger businesses can now apply for loans of up to £200 million

From today, businesses will be able to apply for larger loans under the Coronavirus Large Business Interruption Loan Scheme (CLBILS). The maximum loan size available under the scheme will be increased from £50 million to £200 million to help ensure large firms who do not qualify for the Bank of England’s Covid Corporate Financing Facility (CCFF) have enough finance to meet cashflow needs during the outbreak. The expanded loans, which have been introduced following discussions with lenders and business groups, will be available from 26 May.

Further information on CLBILS can be found: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/clbils/

Economic Secretary to the Treasury, John Glen, said:

We’re determined to support businesses of all sizes throughout this crisis and our loans and guarantees have already provided over £32 billion to thousands of firms.

Today we’re increasing the maximum loan to £200 million to make sure companies get the help they need.

Companies borrowing more than £50 million through CLBILS will be subject to restrictions on dividend payments, senior pay and share buy-backs during the period of the loan, including a ban on dividend payments and cash bonuses, except where they were previously agreed.

These restrictions will also apply to CCFF participants who wish to borrow money beyond 12 months from today. This will ensure that the money is used to keep the company going through the crisis. The Bank will also publish a list of companies who have benefitted under CCFF from the scheme on 4 June.

Further Information

• borrowers under CLBILS will be able to borrow up to the lower of 25% of turnover or £200 million
• lenders who wish to offer larger loans will need to undergo further accreditation checks

The restrictions in place will include:

• Dividends: Borrowers cannot make any dividend payments
• Share buyback: Borrowers agree any share buybacks
• Executive pay: Borrowers cannot pay any cash bonuses or award any pay rises to senior management (including the board) except where they were a) declared before the CLBILS loan was taken out, b) is in keeping with similar payments made in the preceding 12 months, and c) does not have a material negative impact on the borrower’s ability to repay the loan.

Coronavirus Future Fund updated

The eligibility details for the Government’s Future Fund have been updated. This loan fund was set up to provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.

These convertible loans may be a suitable option for businesses that typically rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit. Applications for the Fund will open on Wednesday 20 May 2020.

Find out more and how to apply here: https://www.gov.uk/guidance/future-fund#history

Coronavirus Statutory Sick Pay Rebate Scheme to open for claims on 26 May

Employers will be able to make claims through the Government’s Coronavirus Statutory Sick Pay (SSP) Rebate Scheme from Tuesday 26 May. The new scheme, announced in the Spring Budget, will be available online for small and medium-sized employers to recover SSP payments they have made to current or former employees. HM Revenue and Customs will recover the costs of COVID-19 related SSP claims dating back to 13 March.

For more information and how to apply: https://www.gov.uk/government/news/coronavirus-statutory-sick-pay-rebate-scheme-set-to-launch

SMMT publish automotive aftermarket and manufacturing guidance - 13 May

SMMT has produced two further guidance documents on safe working best practice for automotive manufacturing and aftermarket.

The guidance - COVID-19: Automotive Aftermarket Industry Guidance – is available to download here: https://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT_GEA_IAAF_IMI_SMTA_Industry-Guidance-COVID-19-Automotive-Aftermarket-Restart-second-edition.pdf

The guidance - COVID-19: Automotive Manufacturing Industry Guidance – is available to download here: https://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT_Industry-Guidance-COVID-19-Manufacturing.pdf

Both documents have been developed alongside members and in the case of the aftermarket guide with the help and support of the Garage Equipment Association, Independent Automotive Aftermarket Federation, Institute of the Motor Industry and Scottish Motor Trade Association.

The sector specific guides build on government advice released earlier this week and together cover the wide-ranging activities and operations of SMMT members across vehicle and component production, warehousing, workshops and distribution.

SMMT and NFDA publish automotive retail guidance as ‘click and collect’ approved - 13 May

The UK automotive retail sector today signaled its readiness to get back to work, with the publication of Today, SMMT and NFDA published a new guidance document on safe working best practice for automotive retailers which has been developed in collaboration between the two organisations and members from each organisation.

The guidance - COVID-19 Protective Measures: Automotive Retail Sector Industry Guidance and Best Practice – is available to download here: https://www.smmt.co.uk/wp-content/uploads/sites/2/NFDA-SMMT-Industry-Guidance-COVID-19-Protective-Measures-for-Auto-Retail-second-edition.pdf

This builds on government guidance released earlier this week, with sector-specific advice covering showroom interactions, part exchanges, test drives and aftersales, etc. The document also contains guidance covering ‘click and collect’ following clarification we have just received from government.

Click and collect is permitted from automotive retail sites, however, this must be conducted outside – showrooms must remain closed – and following government social distancing rules.

SMMT and NFDA have issued a press release, highlighting automotive retail’s readiness to re-open and calling for car showrooms to be allowed to open as soon as possible. Read the release here: https://www.smmt.co.uk/2020/05/auto-retail-sector-ready-to-get-britain-moving-again-as-nfda-and-smmt-publish-safe-restart-guidance/

UK Government Update – 13 May

Government provides Trade Credit Insurance guarantee

This morning, the Government announced it will support businesses through Trade Credit Insurance guarantee. The government will temporarily guarantee business-to-business transactions currently supported by Trade Credit Insurance, ensuring the majority of insurance coverage will be maintained across the market. This will support supply chains and help businesses to trade with confidence as they can trust that they will be protected if a customer defaults on payment.

The guarantee will be delivered through a temporary reinsurance agreement with insurers currently operating in the market. The government will work with businesses and the industry on the full details of the scheme to ensure firms are supported and risk is appropriately shared between the government and insurers.

The guarantees will cover trading by domestic firms and exporting firms and the intent is for agreements to be in place with insurers by end of this month. The guarantee will be temporary and targeted to cover CV-19 economic challenges, and will provisionally last until the end of the year. It will be followed by a review of the TCI market to ensure it can continue to support businesses in future. Further details will be announced in due course.

Read the full release here.

The Economic Secretary to the Treasury, John Glen said:

This country’s businesses are crucial in helping us to kick start the economy as we get back to work, and I will do everything I can to help support them through this difficult time. By guaranteeing business-to-business transactions currently supported by Trade Credit Insurance, we will help to maintain a vital cog in our economy.

This is on top of an unprecedented package of support we have put in place to help protect individuals, businesses and the economy.

Business Minister, Paul Scully, said:

Giving businesses the confidence to continue trading is vital to seeing us through this crisis. This guarantee will be essential as we seek to reopen new sectors of the economy and get the UK back to work in a way that is safe for everyone.

UK Government Update – 12 May

Chancellor extends furlough scheme until October

• Coronavirus Job Retention Scheme will continue until end of October
• furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
• new flexibility will be introduced from August to get employees back to work and boost economy

Read the full release here: https://www.gov.uk/government/news/chancellor-extends-furlough-scheme-until-october

In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Chancellor Rishi Sunak said:

Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

New guidance on safer travel and safer transport

The Government has issued new guidance for safer travel and safer transport operations during the next phase of the coronavirus (COVID-19) pandemic.

Read the full release here: https://www.gov.uk/government/news/new-guidance-published-to-ensure-transport-network-is-safe-for-those-who-need-to-use-it

Read the new guidance here: https://www.gov.uk/guidance/coronavirus-covid-19-safer-travel-guidance-for-passengers

The new guidance provides advice on how passengers should make journeys safely, following the publication of the government’s roadmap and strategy for the next phase of the pandemic. The advice sets out that if people who cannot work from home and have to travel for work, they should first consider alternatives to public transport. Those driving their own cars have been asked to avoid busy areas.

For those who have to use public transport, the new guidance recommends:

• keeping 2 metres apart from others wherever possible
• wearing a face covering if you can
• using contactless payment where possible
• avoiding rush hour travel where feasible
• washing or sanitising your hands as soon as possible before and after travel
• following advice from staff and being considerate to others

All transport operators have been issued guidance on ensuring stations and services are regularly cleaned, making clear to passengers how to stay 2 metres apart where possible in stations, airports and ports, and to ensure routes for passengers are clearly communicated to avoid crowding. The government’s guidance also sets out steps operators should take to provide safe workplaces and services for their staff and passengers across all modes of private and public transport.

To help reduce pressure on the transport network so there is space for social distancing where possible, the Transport Secretary has spoken to train and bus operators and local authorities to ensure they increase the number of available services over the coming weeks.

Transport Secretary Grant Shapps said: “Transport operators and staff have been working hard to ensure that people who need to get to work are able to do so, including crucial NHS workers and all those on the frontline of the fight against the virus.

“Alongside the cycling and walking revolution we are launching, and clear guidance to passengers and operators published today, we can all play our part by following the advice and reducing pressure on public transport.

“If we take these steps, all those who need to use public transport should feel confident that they can do so safely, with the space to maintain social distancing as far as possible.”

UK Government Update – 11 May (evening)

Government publishes safer workplace guidance

The Government has published new guidance to help employers, employees and the self-employed understand how to work safely during the coronavirus pandemic. The new guidance covers 8 workplace settings which are allowed to be open from Wednesday (13 May), from outdoor environments and construction sites to factories and takeaways:

The 8 sector guidance documents are available here: https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19

These set out practical steps for businesses, focused on 5 key points, which should be implemented as soon as it is practical:

1. Work from home, if you can
2. Carry out a COVID-19 risk assessment, in consultation with workers or trade unions
3. Maintain 2 metres social distancing, wherever possible
4. Where people cannot be 2 metres apart, manage transmission risk
5. Reinforcing cleaning processes

UK Government Updates – 11 May

COVID-19 Exit Strategy and new Social Distancing Guidance

The Government has published its exit strategy on exiting the COVID-19 lockdown, as well as its new guidance on social distancing. See the links below.

Exit strategy publication - OUR PLAN TO REBUILD: The UK Government’s COVID-19 recovery strategy

New social distancing guidance - Staying alert and safe (social distancing)

Further guidance on safe workplaces, reopening schools and travelling safely will all be published later today. Guidance on borders will follow later this week.

Public advised to cover faces in enclosed spaces

Following guidance from the Scientific Advisory Group for Emergencies (SAGE), the Government has issued a release advising the public to consider wearing face coverings in enclosed public spaces where you may be more likely to come into contact with people you do not normally meet. This applies when using public transport, such as trains, buses and metro systems, or when visiting shops.

They do not need to be worn outdoors, while exercising, in schools, in workplaces such as offices, and retail, or by those who may find them difficult to wear, such as children under two or primary aged children who cannot use them without assistance, or those who may have problems breathing whilst wearing a face covering.

The public is being strongly urged not to purchase surgical masks or respirators, which are prioritised for healthcare workers working in more high-risk environments where the risk is greatest.

Instead the public is encouraged to make face coverings at home, using scarves or other textile items, which many will already own. Read the guidance on how to wear and make a cloth face covering.

Health Minister Jo Churchill said:

At all times our strategy for keeping the public and the NHS safe during this crisis has been guided by the science. Today, thanks to the evidence provided by our expert scientists, we are advising people to consider wearing a face covering if they can in enclosed public spaces where social distancing is impossible, for example on public transport or in shops. This may help prevent you spreading the virus to others.

You do not need a clinical mask which are prioritised for our healthcare workers. Instead a face covering is sufficient and we encourage people to make these at home with items they will already own.

Professor Chris Whitty, Chief Medical Officer said:

Wearing a face covering is an added precaution, that may have some benefit in reducing the likelihood that a person with the infection passes it on.

The most effective means of preventing the spread of this virus remains following social distancing rules and washing your hands regularly. It does not remove the need to self-isolate if you have symptoms.

The full release is available on GOV.UK.

UK Government Update – 28 April

UK COVID-19 testing capacity extended beyond front-line workers

Health Secretary Matt Hancock confirmed that UK COVID-19 testing will be extended to all workers who have to leave their home to do their job, for example those working in manufacturing.

Speaking at the No.10 Daily Coronavirus Press Conference, the Health Secretary stated UK testing capacity has increased, now enabling him to open up testing to anyone who goes into work because they cannot work from home (for example, manufacturing workers) and has symptoms. In addition, testing is being made available to all over 65s in a household showing symptoms.

The online application portal has been updated to reflect this new guidance.

Latest UK Government Update – 27 April

New 100% government backed loan scheme for small business

Today, the Chancellor of the Exchequer announced a new micro loan scheme to support small businesses. This will enable them to apply for the new Bounce Back Loans for 25% of their turnover, up to a maximum of £50,000, with the government guaranteeing, to the lender, 100% of the loan and paying the interest for the first twelve months.

These loans will be available from 9am next Monday (4 May). There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in. For most firms, loans should arrive within 24 hours of approval. The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.

The Chancellor of the Exchequer, Rishi Sunak, said:

Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.

This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.

Latest News - 24 April

Welsh First Minister sets out framework for easing coronavirus restrictions

Welsh First Minister Mark Drakeford has today published a framework and seven key questions to help lead Wales out of the coronavirus pandemic and set a path towards lifting restrictions.

The framework will help to determine when stay-at-home restrictions can begin to be relaxed and outlines a programme of surveillance, case identification and contact tracing. The seven questions guiding the possible lifting of restrictions include:

• whether this would have a negative effect on containing the virus,
• whether a particular measure poses a low risk of further infection,
• whether it can be monitored and enforced or reversed in the face of unintended consequences, and
• whether there is a positive economic benefit, and a positive impact on people’s wellbeing and on equality.

West Midlands leaders draw up recovery action plan

Political and business leaders in the West Midlands are drawing up a recovery plan tailored to help the region’s economy bounce back once COVID-19 restrictions start to be lifted.

Leaders announced today that they were working together to form a bespoke strategy capable of securing an effective and long-lasting economic recovery. This follows from a report from the West Midlands Regional Economic Development Institute (WM REDI) highlighting that the West Midlands could be the hardest hit region in the UK.

Mayor Andy Street and the WMCA are also pushing ahead with their Gigafactory plans and encouraging Government to make sure it continues to invest in the electric/autonomous vehicle opportunities offered by the region.

DfT sets out coronavirus support package for vital routes for supplies and people

Today, Transport Secretary Grant Shapps set out details on a support package for a number of vital routes for supplies and people, to keep the flow of goods and services running smoothly in and out of the UK, and around the country, throughout the pandemic.

The support package for essential freight services includes:

• up to £17 million for critical routes between Northern Ireland and Great Britain
• up to £10.5 million for lifeline ferry and freight services to the Isle of Wight and the Scilly Isles
• further support for critical routes between Britain and the European mainland

The funding aims to ensure the ongoing supply of critical goods into the country during the COVID-19 pandemic, with up to 31 routes eligible for support, subject to discussions with operators. The UK is working closely alongside French and Irish partners and today pledged in a joint statement to “strengthen partnership and share best practices”, to ensure the continued movement of freight across the continent.

The freight and passenger support package covers:

• 7 routes between Great Britain and Northern Ireland
• routes to the Isle of Wight
• the Penzance-Scilly ferry
• 26 routes between Britain, France, Belgium, Spain, the Netherlands, Denmark, Germany, Norway and Sweden, including Eurotunnel

The full article is available here: https://www.gov.uk/government/news/vital-routes-for-supplies-and-people-kept-open-through-coronavirus-support-package

A statement from the Transport Secretary a joint statement by the United Kingdom, France and Ireland: https://www.gov.uk/government/news/freight-transport-in-the-context-of-covid-19-joint-statement-by-the-united-kingdom-france-and-ireland

Treasury Select Committee launches next stage of inquiry into economic impact of COVID-19

The Treasury Select Committee has launched the next stage of its inquiry into the economic impact of COVID-19.

In this stage, the Committee will examine the operational effectiveness, cost and sustainability of the Government’s and Bank of England’s support packages. The Committee will also examine the impact on the economy and different sectors, the implications for public finances, and how the Government can work towards a sustained recovery.

Committee Chair Mel Stride said: “The Treasury Committee hit the ground running with its scrutiny of the economic impact of coronavirus. Through virtual evidence sessions, calls for evidence and correspondence, we’ve shone a light on the hard edges and delivery challenges of the Government’s and Bank of England’s schemes.

“As well as continuing to do this, we’ll begin to examine the effectiveness, cost and sustainability of support measures as they are beginning to go live.

“The Committee will continue to work constructively with, and hold to account, the Government and financial services sector to ensure as swift an economic bounce back as possible.”

Business Support

SMMT FAQ on vehicle sales and movements – update

Further to Monday’s email from Mike Hawes on vehicle deliveries and SMMT’s response, an FAQ on vehicle movements has been added to the ‘FAQs for business’ tab on the SMMT website. This also provides a link to the guidance developed alongside the FLA and BVRLA.

These FAQs aim to provide some clarity on the existing government guidance that allows retailers to sell online and deliver products to customers, if the necessary social distancing and hygiene measures are in place. However, it still remains a decision for each company based on their own unique circumstances and ability to comply with the requirements, especially in terms of vehicle delivery.

Furthermore, we have had further feedback from Government officials and no additional or sector specific guidance on deliveries is going to be provided. It is their position that the existing guidance on retail and deliveries is sufficient. They will be directing any further queries to the existing guidance and the advice provided by SMMT and other bodies.

Furloughed workers to receive full parental leave entitlement

Today, Government has confirmed that furloughed workers planning to take paid parental or adoption leave will be entitled to pay based on their usual earnings rather than a furloughed pay rate.

Entitlement to Statutory Maternity Pay, as well as the other forms of Parental or Adoption Pay, are currently calculated through someone’s average earnings over an 8-week assessment period. For Maternity Allowance, entitlement and the rate payable is also determined by looking at average earnings over a 13-week period.

The statutory instrument laid in Parliament today will ensure workers whose period of family-related pay begins on or after 25 April will be assessed on their usual, full pay.

Business Minister Paul Scully said: “Maternity and other forms of parental leave are pivotal times in people’s lives, and they should absolutely be protected from the impacts of COVID-19.

“We are supporting workers and businesses in a way never seen before, in response to the unprecedented effects of COVID-19. These measures will ensure those on the Coronavirus Job Retention Scheme continue to receive the parental leave and pay they are entitled to.”

Read the full article here: https://www.gov.uk/government/news/furloughed-workers-to-receive-full-parental-leave-entitlement

Apprenticeship programme response to COVID-19

The Education and Skills Funding Agency (ESFA) has published Version 3 of its guidance on the Apprenticeship programme. It can be read here:

https://www.gov.uk/government/publications/coronavirus-covid-19-apprenticeship-programme-response/coronavirus-covid-19-guidance-for-apprentices-employers-training-providers-end-point-assessment-organisations-and-external-quality-assurance-pro

This version focuses on:

• Further information on calculating wages for furloughed apprentices
• Clarification that a furloughed employee can start an apprenticeship
• Information on collecting signatures
• Additional content on flexibilities of end-point assessment
• Flexibilities for English and Maths functional skills for Intermediate (level 2) apprentices
• Flexibilities on qualification certification

ESFA will be setting up webinars shortly where the policy authors will go through the changes and take part in a question and answer session. SMMT will publish further updates when we receive them.

ESFA Post-16 Provider Relief Scheme

The Education and Skills Funding Agency’s Post-16 Provider Relief Scheme opened for applications today and is available to training providers with contracts for services that were procured as a service under the Public Contract Regulations 2015. The scheme is not only for Independent Training Providers. Any provider with AEB and non-levy apprenticeship contracts for services are eligible - subject to conditions.

All the details can be read here: https://www.gov.uk/government/publications/esfa-post-16-provider-relief-scheme

The closing date for applications is 30 April 2020 at midnight and providers will be notified if they are to receive support on or around 15 May 2020.

The purpose of the Relief Scheme is to ensure training providers can continue to deliver high quality education and training to make sure we have the skills needed to rebuild our economy post COVID-19. This also includes supporting new learners where possible to get the skills they need to progress.

Training providers will need to demonstrate that they have a need for the funding requested in order to maintain capacity within their organisations to support learners and respond to the economic recovery.

If successful, providers will later need to provide a summary of how the funds have been used, and retain evidence, for audit purposes, that they have delivered activities prescribed by the scheme and that the funds have been used for eligible costs.

UK Government and Scottish Government Updates – 21 April

Apply for the Coronavirus Large Business Interruption Loan Scheme

The Coronavirus Large Business Interruption Loan Scheme is now open for applications. As a reminder, this scheme is open to all viable businesses with turnover of more than £45 million per year, and they can apply for up to £25 million of finance. Firms with a turnover of more than £250 million can apply for up to £50 million of finance.

The full rules of the scheme and guidance on how to apply is available on the British Business Bank website.

Scottish Government strengthens social distancing regulations

The Scottish Government has announced that social distancing regulations have been confirmed and extended to protect workers.

Temporary regulations restricting public gatherings and non-essential business activity have been in force since 26 March. A number of amendments have now been made to protect workers and provide further guidance for people in Scotland. The adjustments to the regulations include formalising the two-metre distancing rules to all businesses that remain open. Businesses that do not take all reasonable measures to enforce those rules could be fined or ultimately prosecuted.

The regulations must be reviewed every 3 weeks and are kept under continual review by the Scottish Government.

UK Government Update – 20 April

Government announces new 'Future Fund' for "innovative" companies

The government has announced a new package of support for "innovative companies" (or ‘start-ups’) that are not eligible for existing COVID-19 funding schemes.

Government will match up to £250 million of private investment and add £550 million to an existing loan and grant scheme for smaller firms that focus on research and development. The scheme will be delivered in partnership with the British Business Bank.

To be eligible a business must be an unlisted UK-registered company that has raised at least £250,000 in equity investment in the last five years. The Chancellor has stated that £750 million will be available through grants and loans from Innovate UK, the national innovation agency, with the majority available to its 2,500 existing customers. The first payments will be made by mid-May.

Government launches new online 'finder' tool for financial support packages

Government has launched a new tool to help businesses find coronavirus financial support. Businesses which may be eligible for loans, tax relief and cash grants can use the support finder to help find what support is available and appropriate for individual businesses. The tool is available here: https://www.gov.uk/business-coronavirus-support-finder

Transport Secretary announces easier renewal of expiring driving licences

On Friday (17 April), Transport Secretary Grant Shapps announced that it will be easier for bus and lorry drivers to review their expiring driving licences. In joint action with the DVLA it has been announced that drivers will be able to receive a temporary 1-year licence, providing they do not have any medical conditions that affect their driving and their current licence expires in 2020.

Latest Government Announcements and Updates – 17 April

Coronavirus Job Retention Scheme (CJRS) extended by one month

Today, Chancellor of the Exchequer Rishi Sunak has announced that the Coronavirus Job Retention Scheme (CJRS) would now be open until the end of June. This follows on from yesterday’s announcement to keep the social distancing measures in place for a further three weeks.

The scheme, which allows firms to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500, was originally open for three months and backdated from the 1 March to the end of May. However, the Chancellor said he would keep the scheme under review and extend it if necessary.

You can find more information on the scheme and eligibility to claim here.

Coronavirus Job Retention Scheme opens for claims on Monday 20 April

The online claim service for the Coronavirus Job Retention Scheme will be launched on GOV.UK on Monday 20 April 2020. Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.

SMMT advises members to make their claims as early as possible, as HMRC has suggested that it could take between 4-6 days for payments to be made following a claim. To prepare to make your claim you will need:

• A Government Gateway (GG) ID and password – if you don’t already have a GG account, you can apply for one online, or by going to GOV.UK and searching for 'HMRC services: sign in or register'
• Be enrolled for PAYE online – if you aren’t registered yet, you can do so now, or by going to GOV.UK and searching for 'PAYE Online for employers'
• The following information for each furloughed employee you will be claiming for:
  • Name
  • National Insurance number
  • Claim period and claim amount
  • PAYE/employee number (optional)

If you have fewer than 100 furloughed staff – you will need to input information directly into the system for each employee. If you have 100 or more furloughed staff – you will need to upload a file with information for each employee; HMRC will accept the following file types: .xls .xlsx .csv .ods.

You should retain all records and calculations in respect of your claims. You can find more information on the scheme and eligibility to claim here.

Coronavirus Large Business Interruption Loan Scheme expanded

All viable businesses with turnover of more than £45m will be able to apply for government-backed support. Ahead of its launch on Monday 20 April, Chancellor Rishi Sunak announced late yesterday that all firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.

Business with turnovers of more than £500 million were originally not eligible for the Large Business scheme, which is being set up to help firms who do not qualify for the existing Coronavirus Business Interruption Loan Scheme – for small and medium sized businesses - and the Bank of England Covid Corporate Financing Facility – for investment grade companies.

Details on the scheme, including eligibility criteria and the accredited lenders, is available on the British Business Bank website here.

Important UK Government Update – 15 April

Coronavirus Job Retention Scheme (JRS) cut-off date extended to 19 March

The 28 February eligibility cut-off has now been extended to 19 March 2020. HMT states that this change will mean thousands more workers will be eligible for the scheme.

The Government’s JRS is expected to be fully operational from Monday 20 April. Under the scheme, announced by Chancellor Rishi Sunak last month, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month. To qualify and to protect against fraudulent claims, individuals originally had to be employed on 28 February 2020.

If any employer now thinks they are eligible for support, they can find out more on the Government’s JRS guidance pages on GOV.UK.

Also today, HM Treasury published the legal framework for the JRS, a Direction under Sections 71 and 76 of the Coronavirus Act 2020, which sets out that HMRC are responsible for the payment and management of amounts to be paid under the Coronavirus Job Retention Scheme.

Scottish Government Update – 15 April

Scottish Government issues further £220m of business support grants

The Scottish Government has announced a further £220m in grants for businesses to deal with the ongoing impact of the COVID-19 crisis. The new package of measures includes:

• £120m to extend the Small Business Grant scheme
  • to ensure that, in addition to a 100% grant on the first property, small business rate payers will be eligible to a 75% grant on all subsequent properties.
• a further £100m for protecting self-employed people and viable micro and SME businesses.

This fund will be channeled through local authorities and enterprise agencies to target newly self-employed people and businesses who are ineligible for other Scottish Government or UK Government schemes.

Applications for the £100 million fund will be open by the end of the month, and the new arrangements for the Small Business Grant will be in place to receive applications on 5 May.

Latest Government Announcements and Updates – 8 April

Updated guidance - Vehicle tax and MOT running out in the current month

Following the automatic extension to MOT expiry dates, in light of the coronavirus situation, Government has issued updated guidance where vehicle tax and MOT run out in April.

You cannot renew your vehicle tax until your MOT expiry date has been extended. It will be extended a few days before it was originally due to expire. This means you might need to wait until later in April to tax your vehicle. Check that the MOT expiry date has been extended before you tax your vehicle.

Coronavirus (COVID-19): transport and travel guidance hub

Government has published a new hub on gov.uk, which brings together information for people using transport or working in the transport sector during the Coronavirus outbreak. This includes information on:

• Using public transport
• Driving private vehicles - cars, vans, motorbikes
• Bus and lorry drivers
• Freight, bus and road transport businesses
• Transport workers
• Maritime and shipping
• Aviation and flying
• Overseas travel

Update on COVID-19 Statutory Sick Pay Rebate Scheme

HMRC has published new online guidance on the COVID-19 Statutory Sick Pay Rebate Scheme which includes information about who can use the scheme and the records employers must keep. This scheme will allow small and medium sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying Statutory Sick Pay to their employees.

HMRC is working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers. Details about when the new Statutory Sick Pay Rebate Scheme can be accessed and when employers can make a claim, will be announced as soon as possible. HMRC will continue to update employers and the new GOV.UK guidance when these details are available.

HMRC COVID-19 webinars

HMRC is delivering a programme of webinars on the measures to support employers, people and self-employed individuals through this period of disruption caused by COVID-19.

You can watch a video of the recorded webinar on the HMRC YouTube channel at:

Coronavirus (COVID-19): helping employers to support employees.

You can also register to attend a free webinar to learn more about the support available to help you deal with the economic impacts of coronavirus by registering here.

Coronavirus (COVID-19): letter to the manufacturing sector - 7 April

Letter from the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, to those working in manufacturing.

Important PHE Guidance Published

Social distancing in the workplace during coronavirus (COVID-19): sector guidance

Last night, PHE published updated guidance on social distancing in the workplace. This is a list of tailored advice for different scenarios as an example of how social distancing and other measures might be implemented by employers in England to help protect their workforce and customers from coronavirus while still continuing to trade.

Full guidance available here: https://www.gov.uk/guidance/social-distancing-in-the-workplace-during-coronavirus-covid-19-sector-guidance

Among others, this includes guidance for:

Manufacturing and processing businesses
Retail
Logistics businesses
Transport businesses
Waste management businesses

Latest Announcements and Updates – 7 April

Bank of England announces new Term Funding Scheme with incentives for SMEs to open on 15 April

The Bank of England has announced that its new Term Funding Scheme with additional incentives for SMEs (TFSME) will open for drawings next Wednesday 15 April. The launch date is sooner than anticipated.

The TFSME will complement the other COVID-19 response schemes announced by HM Treasury and allows banks to access four-year funding at rates very close to the Bank Rate. The Bank said that launching the scheme as soon as possible will further support SMEs’ ability to access the funding from the banking system that they need to continue to pay wages and bills.

The aims of the TFSME are to:

• Help reinforce the transmission of the reduction in Bank Rate to the real economy to ensure that businesses and households benefit from the MPC’s actions
• Provide participants with a cost-effective source of funding to support additional lending to the real economy, providing insurance against adverse conditions in bank funding markets
• Incentivise banks to provide credit to businesses and households to bridge through a period of economic disruption.
• Provide additional incentives for banks to support lending to SMEs that typically bear the brunt of contractions in the supply of credit during periods of heightened risk aversion and economic downturns.

Eligible participants can borrow at least 10% of their stock of real economy lending. Additional borrowing allowances are generated £1: £1 for lending to households and large corporates; and £5: £1 for lending to SMEs (i.e. SME lending attracts 5x the borrowing allowance).

SMMT will update its Business Support Tab with more information when the scheme goes live.

Welsh Government 2m ruling – formal guidance

Following yesterday’s update on the Welsh Government’s new legislation on social distancing in the workplace, new formal guidance has been published:

https://gov.wales/taking-all-reasonable-measures-maintain-physical-distancing-workplace

The purpose of this Guidance is to help businesses and other organisations understand what kind of reasonable measures they can take to ensure that persons on their premises stay 2 metres apart. The Welsh Government has chosen to impose a legal requirement on workplaces to ensure that everything reasonable is done to minimise transmission of coronavirus. The guidance is intended to assist people in understanding what “taking all reasonable measures” means and what to do if it is not possible to maintain a distance of 2 metres in certain circumstances.

Temporary relaxation of the enforcement of the drivers’ hours rules: all sectors carriage of goods by road

Government has further relaxed the rules around drivers’ hours. Anyone driving under the EU drivers’ hours rules or the GB drivers’ hours rules and undertaking carriage of goods by road can use the relevant relaxation where necessary. The relaxations are not limited to specific sectors or journeys.

These two temporary relaxations apply from 00:01 on Monday 23 March 2020 and will run until 23:59 on Tuesday 21 April 2020.

Further guidance is available here.

Apprenticeship Programme – updated COVID-19 guidance

The Education and Skills Funding Agency (ESFA) is implementing new measures, for the duration of the coronavirus pandemic, to make it easier for apprenticeships to continue and complete in a different way if they need to, or to break and resume an apprenticeship later when that becomes possible.

Version 2 of their guidance has just been published. This version focuses on furloughed workers, but also contains information on pausing new funding audits, and a selection of updated FAQs.

Tachograph announcement - 6 April

On Friday 3 April the DVSA announced a relaxation on the requirement to calibrate or inspect tachographs periodically.

Until further notice, all tachograph calibration and inspection expiry dates are extended by 3 months.

Any faults with tachographs must still be repaired as normal, the tachograph system must function as required by the legislation, and the system is still required to be sealed in line with the requirements. Initial calibrations are to continue, and any changes to the various parameters (such are tyre size, vehicle registration, etc) will also require action as normal.

Further guidance will be issued when available.

URGENT: PPE Manufacture – support required - 5 April

You may have seen coverage last week from a UNITE the Union and Royal College of Nursing “call to arms”  for any available manufacturing capability to be turned to the manufacture of PPE to support our front line health and social care workers. We were aware of the request and given the automotive industry’s tacit support.

Cabinet Office has today picked up that call and asked UNITE to help coordinate by identifying those large scale manufacturers (they are seeking 10-20+) who are both willing to assist in the provision of raw materials as well as the manufacture and assembly of priority PPE and who have the capacity to reopen furloughed facilities or utilise excess capacity, even repurpose existing workload, to meet the nations needs in what are clearly unprecedented circumstances. UNITE has therefore contacted ourselves and representatives of other manufacturing sectors to help.

Priority needs are in in the following areas:

• Aprons,
• Gowns
  • Sterile
  • Non-Sterile
  • Thumb-Looped
• Coveralls/Body Suits
• Face Masks
  • Surgical Face Masks - Type IIR
  • Respirator Face Masks - FFP3 & FFP2
• Examination Gloves
• Hand Sanitizer

Government has provided the technical specifications for product below:

The technical specifications for the PPE categories can be found here: https://www.gov.uk/government/publications/technical-specifications-for-personal-protective-equipment-ppe

The very latest OPSS guidance on health and safety requirements can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878115/opss-covid-19-guidance-to-businesses-high-volume-manufacture-of-ppe-version-1.pdf

At present, we do not have the design specifications currently being used by manufacturers but Government will see to obtain this.

For the present however, if you believe your business might be in a positon to assist, I would be enormously grateful. Please send your company’s details and contact information to Jonathan Moore jmoore@smmt.co.uk

I know that many of you are already releasing excess capacity on initiatives like the Ventilator Challenge as well as providing other facilities and equipment such as 3D printing, cad design and engineering, injection molding and laser cutting equipment as well as bringing together workers (including those furloughed) to start manufacturing PPE and other kit but Government wants to try and step up the capability urgently.

I understand the tremendous challenges you are all facing right now, but if you can support it could make a substantial difference.

Thank you for your urgent help and assistance in this matter.

Kind regards

Mike Hawes
Chief Executive

Government Announcements and Updates – 4 April

www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Government has today issued some clarifications on the Job Retention Scheme, including:

• More detail on eligible employers, including on companies in administration;
• Confirming the eligibility for different types of employment relationships, including company directors, salaried members of limited liability partnerships and agency workers.
• Confirming the position of individuals with caring responsibilities.
• What is included in an employee’s ‘regular wages’, including clarification around benefits in kind and commission.

Government Announcements and Updates – 3 April

Chancellor announces changes to business support measures

Today the Chancellor of the Exchequer announced significant changes to the business support currently on offer for business impacted by the coronavirus.

To improve the support available, the Chancellor is extending the Coronavirus Business Interruption Loan Scheme (CBILS):

• All viable small businesses affected by COVID-19, and not just those unable to secure regular commercial financing, will now be eligible should they need finance to keep operating during this difficult time;
• The government is also stopping lenders from requesting personal guarantees for loans under £250,000; and
• Making operational changes to speed up lending approvals;
• The government will continue to cover the first twelve months of interest and fees.

Government guidance on CBILS has been updated:
https://www.businesssupport.gov.uk/coronavirus-business-interruption-loan-scheme/

To support the ‘stranded middle’, the new Coronavirus Large Business Interruption Loan Scheme (CLBILS) will ensure that more firms are able to benefit from government-backed support. It will provide:

• A government guarantee of 80% to enable banks to make loans of up to £25 million to firms with an annual turnover of between £45 million and £500 million;
• This will give banks the confidence to lend to more businesses which are impacted by coronavirus but which they would not lend to without CLBILS;
• Loans backed by a guarantee under CLBILS will be offered at commercial rates of interest and further details of the scheme will be announced later this month.

Further guidance on the new CLBILS is available here:
https://www.businesssupport.gov.uk/coronavirus-large-business-interruption-loan-scheme/

Chancellor of the Exchequer, Rishi Sunak MP, said: “We are making great progress on getting much-needed support out to businesses to help manage their cashflows during this difficult time – with millions of pounds of loans and finance being provided to hundreds of firms across the country.

“And now I am taking further action by extending our generous loan scheme so even more businesses can benefit. We have also listened to the concerns of some larger businesses affected by COVID-19 and are announcing new support so they can benefit too.

“This is a national effort and we’ll continue to work with the financial services sector to ensure that the £330 billion of government support, through loans and guarantees, reaches as many businesses in need as possible.

The Chancellor will be speaking to bank Chief Executives next week to discuss how the schemes are working.

New bus route support from the Transport Secretary

Transport Secretary Grant Shapps announced support for England’s bus routes, totalling £397 million to ensure they continue to serve those who rely on them:

• funding will protect bus services for people who need to travel, for example to get to work or buy food;
• new funding, totalling £167 million over 3 months, comes on top of pledge to guarantee existing £200 million investment;
• up to another £30 million also reallocated to safeguard services.

The package, agreed jointly with the bus industry, will keep key routes running to provide a lifeline for those who cannot work from home, including those travelling to jobs on the frontline of the UK’s fight against COVID-19, such as NHS staff.

New funding of up to £167 million will be paid over 12 weeks under the new COVID-19 Bus Services Support Grant. As a condition of the funding, bus operators will be required to maintain necessary services at a level which is sufficient to meet much reduced demand, but also to allow adequate space between passengers on board. This is expected to be up to 50% of normal service levels.

Transport Secretary Grant Shapps said: “We have been very clear during the outbreak that the best way to stop the spread of the virus and protect the NHS, is to stay at home if possible.

“Our buses are a lifeline for people who need to travel for work or to buy food – including our emergency services and NHS staff – and it’s absolutely vital we do all we can to keep the sector running.

“This multi-million-pound investment will protect crucial local transport links across England, bolstering the sector and minimising disruption for passengers in the long term.”

Operators will also be required to keep passengers properly informed about revised timetables to ensure that people know which services are running and when.

The government has also promised that £200 million of existing funding under the Bus Services Operators Grant will continue to be paid as normal even though not all services may run during this time. This funding is usually paid according to fuel consumption, and so the government’s commitment to pay this on pre-COVID-19 levels will help ensure that bus companies are able to benefit despite fewer fare-paying passengers travelling.

This is in addition to up to £30 million of extra government bus funding, originally earmarked for starting new services, which will instead be paid to local authorities to maintain existing services.

The Chancellor of the Exchequer, Rishi Sunak, said: “It’s vital people protect our NHS by staying at home during the outbreak – but we also need to ensure that doctors, nurses and other key workers, can travel to and from their jobs.

“This funding will provide a lifeline for those on the frontline as well as those who cannot work from home.”

Councils have also been encouraged to maintain their existing subsidies for concessionary fares to ensure that older and disabled people can still travel when they need to, for example to reach the shops, hospitals and doctors’ surgeries.

Coronavirus (COVID-19): guidance on business support grant funding - Updated 31 March

Guidance has been updated for local authorities, setting out details of the Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF).

The updated Guidance (Version 3) has been published with the latest information on State Aid, monitoring and reporting requirements, new annexes on state aid, Spotlight, and post payment checks, clarification of eligibility of charities.

Welsh Government launches £500m Economic Resilience Fund

The Welsh Government has launched a £500m Economic Resilience Fund aimed at plugging the gaps in the support schemes already announced by the UK Government.

The fund will support firms of all sizes, including social enterprises, with a focus on those which have not already benefited from the coronavirus grants announced by the Welsh Government so far. It will particularly support businesses forced to temporarily cease trading, or which need cash-flow support to adapt to a remote way of working.

Regulation Updates

Temporary changes to Right to Work (RTW)

From 30 March 2020, the Government has temporarily adjusted Right to Work checks to make it easier for employers to carry them out during the coronavirus outbreak. Until further notice, employers do not need to see original documents and can complete Right to Work checks over video calls.

Prospective workers are now able to submit scanned documents, rather than originals, to show they have the right to work. Checks continue to be necessary and it is an offence to knowingly employ or let property to anyone who does not have legal immigration status in the UK.

If prospective or existing employees cannot provide any of the accepted documents, employers should use the Employer Checking Service. Once the temporary changes end, employers will be asked to carry out prescribed checks on existing employees who started work during the pandemic.

Further guidance on what this means for employers is available on GOV.UK.

Coronavirus (COVID-19): temporary changes to driver CPC requirements

The Department for Transport has published temporary changes to allow bus and lorry drivers who cannot complete compulsory CPC training to continue to drive. This means that drivers whose driver qualification card (DQC) expires in the period from 1 March 2020 to 30 September 2020 can continue driving.

In addition, military drivers (who have different training) will be allowed to drive in civilian situations during that period.

Technical Specifications for Personal Protective Equipment (PPE)

Government has published technical specification documents to enable prospective new suppliers and manufacturers to understand the essential requirements. Where new suppliers have product(s) that meet these requirements, offers of support can be submitted through a smart survey.

Prospective suppliers and manufacturers are asked to take not that the specifications reference a number of standards and legislation. The list of standards/legislation/directives is not intended to be exhaustive and any relevant standard/legislation/directive (even if not stated) must be complied with.

Products must comply with the stated standards/legislation/directives (as amended, extended or re-enacted from time to time) and/or the relevant section within the standard/legislation/directive and/or the relevant standard within the stated suite of standards.

How to offer coronavirus support from your business

Government is seeking support on a range of products and services that it needs to aid its response to the coronavirus. Companies (manufacturers and suppliers) and individuals can submit offers of support here to tell Government how their business might be able to assist.

The support needed includes:

• medical testing equipment
• medical equipment design
• protective equipment for healthcare workers, such as masks, gowns and sanitiser
• hotel rooms
• transport and logistics, for moving goods or people
• manufacturing equipment
• warehouse or office space, for medical use or storage
• expertise or support on IT, manufacturing, construction, project
• management, procurement, engineering or communications
  social care or childcare

SMMT is also working with members to feed offers of support into Government. Please contact us if you have any thoughts or an offer we can assist with.

UK Insolvency Law amended - 30 March

On Saturday, Business Secretary Ashok Sharma, announced amendments to the insolvency law to help companies keep trading while they explore options for rescue.

Under the plans, the UK’s Insolvency Framework will add new restructuring tools that mirror the USA’s Chapter 11 procedure, a well-established model adopted by countries around the world. This includes:

• A moratorium for companies giving them breathing space from creditors enforcing their debts for a period of time whilst they seek a rescue or restructure
• Protection of their supplies to enable them to continue trading during the moratorium; and
• A new restructuring plan, binding creditors to that plan.

The proposals will also include key safeguards for creditors and suppliers to ensure they are paid, while existing laws against fraudulent trading and the threat of director disqualification will continue to act as an effective deterrent against reckless misuse of these new measures.

Specialist vehicle approval tests

On 23 March Government announced that approval tests for newly-built, rebuilt, radically-altered and imported vehicles are suspended due to coronavirus - but critical vehicles can still be tested.

On Friday 27 March, Government updated its guidance and made the eligibility criteria for critical vehicles clearer. It also added an example of the proof you need to include with your application that the vehicle is critical to the COVID-19 response. There was a change to the email address that applications should be sent to - you do not need to resend any previous emergency applications.

Full details here: https://www.gov.uk/guidance/coronavirus-covid-19-vehicle-approval-tests#history

Regulations eased on hand sanitiser and PPE

Ashok Sharma also announced that Government is easing administrative requirements and barriers to imports. By easing regulations, new suppliers and businesses that produce ingredients for hand sanitiser will be able to bring their products to market in a matter of days.

Efforts to boost availability of essential supplies include:

• Asking the Health and Safety Executive (HSE) and Local Authorities to fast-track PPE through the product safety assessment process and prioritise this activity over other market surveillance activity
• Allowing products which lack the CE mark onto the market provided products meet essential safety requirements
• Providing new guidance for local authorities and ports and borders enforcement officers on the import and safety testing of hand sanitiser.

Government Announcements and Updates – 26 March

The Chancellor of the Exchequer made an announcement and published guidance on support being made available for self-employed persons, as well as comments on the finance support package for large businesses, the COVID-19 Corporate Finance Facility. In addition to this, the Government published new guidance on how the COVID-19 Job Retention Scheme will operate. The Government also published further updated information in the form of an FAQ on business closures and those that may remain open. Self-employment Income Support Scheme The scheme will provide a grant to self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month. Applicants must:

• Be self-employed or a member of partnership
• Have lost trading/partnership trading profits due to COVID-19.
• File a tax return for 2018-19 as self-employed or a member of a trading partnership. Those who have not yet filed for 2018-19 will have an additional 4 weeks from this announcement to do so.
• Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID-19) and intend to continue to trade in the tax year 2020 to 2021
• Have trading profits of less than £50,000 and more than half of your total income come from self-employment. This can be with reference to at least one of the following conditions:
  • Your trading profits and total income in 2018/19
  • Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.

The Chancellor said that this measure will support 95% of people who earn most of their income as self-employed. He added that, given this support, the Government will need to look at equalising the level of national insurance contributions paid by the self-employed in future to match the contributions paid by those in employment. Guidance is available here: https://www.businesssupport.gov.uk/self-employment-income-support-scheme/ Job Retention Scheme – new guidance New Guidance on how the scheme will operate: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme The guidance provides information on:

• Who can claim
• Employees you can claim for
• What you can claim
• What you’ll need to make a claim
• How to make a claim

COVID-19 Corporate Financing Facility During his press conference Q&A, the Chancellor confirmed that Government is working with the Bank of England (BoE) to address credit ratings issues that have been raised over the COVID-19 Corporate Financing Facility. Essentially, they will include analysis of other evidence to allow the BoE to make its own assessment of credit viability. According to the Chancellor, guidance will be published later tonight. The existing guidance is published on the BoE website: https://www.bankofengland.co.uk/news/2020/march/the-covid-corporate-financing-facility Business Closures and Stay at Home FAQs The Government has today published an FAQ to provide further guidance on business closures and stay at home requirements. The FAQ is available here: https://www.businesssupport.gov.uk/business-closures-and-stay-at-home-faqs/ Government guidance includes: To reduce social contact and help stop the spread of coronavirus, the Government has ordered certain businesses and venues to close. A list of these businesses can be found here. With the exception of these organisations, the Government has not required any other businesses to close – indeed it is important for business to carry on. Where businesses continue to open, employers should take every possible step to facilitate their employees working from home. Certain jobs require people to travel to their place of work – for instance if they operate machinery, work in construction or manufacturing, or are delivering front line services. If your employees cannot work from home then they can still travel to work, provided they are well and no one in their household is self-isolating. This is consistent with advice from the Chief Medical Officer (CMO). Employers who have people in their offices or onsite should ensure that employees are able to follow Public Health England guidelines including, where possible, maintaining a 2 metre distance from others, and washing their hands with soap and water often for at least 20 seconds (or using hand sanitiser gel if soap and water is not available).

Coronavirus – clarification on businesses which can remain open - 25 March

There has been conflicting advice and communication from Government over recent days in relations to businesses which must close and those which can remain open as part of the Government measures to address the spread of Covid-19. Last night, following the SMMT webinar, we sought clarification from Government, furthermore this morning there has been more detail added to guidance list of businesses which are exceptions to the closure order.

• It has been clarified garages and repair shops can remain open. Car showrooms must be closed. (Source: https://www.gov.uk/government/publications/further-businesses-and-premises-to-close/further-businesses-and-premises-to-close-guidance)
• Storage and distribution facilities, including delivery drop off points can remain open. (Source: https://www.gov.uk/government/publications/further-businesses-and-premises-to-close/further-businesses-and-premises-to-close-guidance)
• The advice given by Government on the webinar has now been clarified. The latest government guidance advises that manufacturing businesses can remain open. See full detail below – updated by the government this morning (25th March)(Source: https://www.gov.uk/government/publications/full-guidance-on-staying-at-home-and-away from-others/full-guidance-on-staying-at-home-and-away-from-others)

As set out in the section on staying at home, people can travel to and from work, but only where the work they do absolutely cannot be done from home. With the exception of the organisations covered above in the section on closing non-essential shops and public spaces, the Government has not required any other businesses to close – indeed it is important for business to carry on. Employers and employees should discuss their working arrangements, and employers should take every possible step to facilitate their employees working from home, including providing suitable IT and equipment to enable remote working. Sometimes this will not be possible, as not everyone can work from home. Certain jobs require people to travel to their place of work – for instance if they operate machinery, work in construction or manufacturing, or are delivering front line services. If you cannot work from home then you can still travel to work, provided you are well and neither you nor any of your household are self-isolating. This is consistent with advice from the Chief Medical Officer. Employers who have people in their offices or onsite should ensure that employees are able to follow Public Health England guidelines including, where possible, maintaining a 2 metre distance from others, and washing their hands with soap and water often for at least 20 seconds (or using hand sanitiser gel if soap and water is not available). Work carried out in people’s homes, for example by tradespeople carrying out repairs and maintenance, can continue, provided that the tradesperson is well and has no symptoms. Again, it will be important to ensure that Public Health England guidelines, including maintaining a 2 metre distance from any household occupants, are followed to ensure everyone’s safety. No work should be carried out in any household which is isolating or where an individual is being shielded, unless it is to remedy a direct risk to the safety of the household, such as emergency plumbing or repairs, and where the tradesperson is willing to do so. In such cases, Public Health England can provide advice to tradespeople and households. No work should be carried out by a tradesperson who has coronavirus symptoms, however mild.As set out in the section on closing non-essential shops and public spaces, the Government has ordered certain businesses and venues to close. The Government has set out guidance on which organisations this requirement covers. Advice for employees of these organisations on employment and financial support is available at gov.uk/coronavirus. At all times, workers should follow the guidance on self-isolation if they or anyone in their household shows symptoms.

Coronavirus - updated social distancing guidance/retail definition - 24 March

Updated social distancing guidance The government has introduced three new measures:

1. Requiring people to stay at home, except for very limited purposes
2. Closing non-essential shops and community spaces
3. Stopping all gatherings of more than two people in public

Full details: https://www.gov.uk/government/publications/full-guidance-on-staying-at-home-and-away-from-others Critical workers Travel-to-and-from work is permitted for critical workers. These are outlined here: https://www.gov.uk/government/publications/coronavirus-covid-19-maintaining-educational-provision/guidance-for-schools-colleges-and-local-authorities-on-maintaining-educational-provision These include those in ‘Transport: This includes those who will keep the air, water, road and rail passenger and freight transport modes operating during the COVID-19 response, including those working on transport systems through which supply chains pass.’ Retail closures The announcement includes the forced closure of all non-essential retail outlets.

• Showrooms will be expected to close.
• Garages can remain open.

Given the importance of garages, however, to the continued operation of emergency and essential services, we last night sought confirmation/approval from Government that garages could indeed remain open. This is now confirmed in the attached and amended guidance. Businesses will have to make their own commercial decisions as to how to respond but there is an undoubted need – a public interest – to ensure the ongoing service, repair and MOT of emergency and essential service vehicles and the vehicles of key workers. Full details: https://www.gov.uk/government/publications/further-businesses-and-premises-to-close We have been asked about employees in garages travelling to their workplace, this is permitted, see above section on critical workers.

DVSA Update – Heavy Vehicle Testing - 23 March

Coronavirus Business Interruption Loan Scheme (CBILS)

Publishing Preliminary Financial Statements

DVSA Guidance on Drivers’ Hours Relaxations - 20 March

1. provide goods or services to protect public health, and/or
2. meet their or others’ basic needs for day to day living, and/or
3. provide medical treatment

• for drivers undertaking ‘trunk’ deliveries of LPG in England, Scotland and Wales between 8 March and 29 March 2020
• for the drivers of vehicles involved in the delivery of food, non-food (personal care and household paper and cleaning) and over the counter pharmaceuticals when undertaking certain journeys, between 18 March and 16 April in England, Scotland and Wales
• for the drivers of vehicles involved in the delivery of food, non-food (personal care and household paper and cleaning), over the counter pharmaceuticals and other medical supplies when undertaking certain journeys, between 20 March and 3 April in England, Scotland and Wales
• for drivers under the EU drivers’ hours rules or the GB drivers’ hours rules and undertaking carriage of goods by road in all sectors, between 23 March and 21 April (continuation of the relaxation past 5 April is subject to review) in England, Scotland and Wales

Department for International Trade (DIT) COVID-19 Guidance

• DIT support for UK business trading internationally
• financial support for business trading internationally

• DIT support for UK businesses trading internationally
  • Supply chains affected by coronavirus (COVID-19)
  • International support for businesses involved in overseas projects
• Financial support for British businesses trading internationally
  • Financial support for exporters
  • International business travel
  • DIT coronavirus (COVID-19) business support contacts
    • COVID19@trade.gov.uk
    • Contact your local embassy

Chancellor’s announcement – 20 March

In a further announcement, the Chancellor of the Exchequer Rishi Sunak has introduced a number of significant measures, as well as strengthening others already announced, to support UK workers. [this will be updated with relevant links when possible]. Job Retention The Government will be setting up new Coronavirus Job Retention Scheme. Details include:

• Any employer will be eligible to apply for the Scheme.
• The Scheme will cover 80% of a worker’s salary, up to £2,500 a month.
  • Employers can top up salaries of workers if they want to.
• The Scheme will be backdated to 1 March 2020.
• The Scheme will be open for three months and last longer if needed.
• There will be no limit to amount of money available for the Scheme.
• The Government expects first grants to be paid in weeks and for the Scheme to be up and running by the end of April.
• Employers can contact HMRC to cover most of the wages of people who are not working.
• A major advertising campaign covering all the measures available to businesses will be running soon and businesses are asked to consider all the measures available before considering making any redundancies.

Business Interruption Loan Scheme The Government announced that the Scheme will now be interest free for 12 months and that loans will be available from Monday. Tax and Benefit Support For the self-employed:

• The Government will be suspending the minimum income floor, meaning that the self-employed can access Universal Credit at a rate equivalent to statutory sick pay for employees.

For others:

• The next quarter of VAT payments will be deferred until June.
• The Government will be increasing the Universal Credit standard allowance by £1000.
• The Government will increase the working tax credit basic element by £1000.

For renters:

• The Government announced an additional £1 billion support for renters, to ensure that the local housing allowance will cover at least 30% of the cost of rents in a tenants’ area.

Guidance on critical workers list – 20 March This morning, Government published guidance on critical workers eligible to continue to send their children to school - Guidance for schools, colleges and local authorities on maintaining educational provision. Further information is available on GOV.UK: https://www.gov.uk/government/publications/coronavirus-covid-19-maintaining-educational-provision/guidance-for-schools-colleges-and-local-authorities-on-maintaining-educational-provision The list is quite broad, but limited in its definitions. Importantly, if workers think they fall within the critical categories (see below) they should confirm with their employer that, based on their business continuity arrangements, their specific role is necessary for the continuation of this essential public service. A summary of the categories, and those most we believe are most relevant to automotive businesses (underlined), are provided below (N.B. this list is not exhaustive): Health and social care This includes but is not limited to doctors, nurses, midwives, paramedics, social workers, care workers, and other frontline health and social care staff including volunteers; the support and specialist staff required to maintain the UK’s health and social care sector; those working as part of the health and social care supply chain, including producers and distributers of medicines and medical and personal protective equipment. Education and childcare This includes nursery and teaching staff, social workers and those specialist education professionals who must remain active during the COVID-19 response to deliver this approach. Key public services This includes those essential to the running of the justice system, religious staff, charities and workers delivering key frontline services, those responsible for the management of the deceased, and journalists and broadcasters who are providing public service broadcasting. Local and national government This only includes those administrative occupations essential to the effective delivery of the COVID-19 response or delivering essential public services such as the payment of benefits, including in government agencies and arms-length bodies. Food and other necessary goods This includes those involved in food production, processing, distribution, sale and delivery as well as those essential to the provision of other key goods (for example hygienic and veterinary medicines). Public safety and national security This includes police and support staff, Ministry of Defence civilians, contractor and armed forces personnel (those critical to the delivery of key defence and national security outputs and essential to the response to the COVID-19 pandemic), fire and rescue service employees (including support staff), National Crime Agency staff, those maintaining border security, prison and probation staff and other national security roles, including those overseas. Transport This includes those who will keep the air, water, road and rail passenger and freight transport modes operating during the COVID-19 response, including those working on transport systems through which supply chains pass. Utilities, communication and financial services This includes staff needed for essential financial services provision (including but not limited to workers in banks, building societies and financial market infrastructure), the oil, gas, electricity and water sectors (including sewerage), information technology and data infrastructure sector and primary industry supplies to continue during the COVID-19 response, as well as key staff working in the civil nuclear, chemicals, telecommunications (including but not limited to network operations, field engineering, call centre staff, IT and data infrastructure, 999 and 111 critical services), postal services and delivery, payments providers and waste disposal sectors. If your school is closed then please contact your local authority, who will seek to redirect you to a local school in your area that your child, or children, can attend.

Business Rates Relief – 19 March

Following the announcement made by the Chancellor on 17 March on a business rates holiday, the Ministry of Housing, Communities and Local Government (MHCLG) has released guidance to support local authorities in administering the business rates expanded retail discount. The guidance applies to England only. This relief will apply to occupied retail, leisure and hospitality properties in the year 2020/21. There will be no rateable value limit on the relief. As for the automotive industry, the following property types will also have no rateable value limit on the relief:

• Car/caravan show rooms
• Second hand car lots
• Petrol stations
• Car hire

The list set out above is not intended to be exhaustive. The local authorities will use their discretionary relief powers, under section 47 of the Local Government Finance Act 1988 to grant relief. It will be for individual local billing authorities to adopt a local scheme and determine in each individual case when, having regard to this guidance. The guidance is available here.

Chancellor’s announcement – 17 March

Less than a week after delivering his first Budget Statement, Chancellor of the Exchequer, Rishi Sunak MP, made a further economic update in light of the rapid escalation of the Government's and UK's efforts to tackle the coronavirus, COVID-19. Please find below a summary of his update. The Chancellor made a further statement in the House of Commons later that evening.

• £330bn extra in government backed guarantees – equivalent to 15% of GDP
• New lending to be made available for large businesses from Bank of England
• Business interruption loan scheme for SMEs now increased to up to £5m per loan, with no interest payable in first 6 months
• A package of measures for airlines and airports will be introduced in coming days
• The hospitality, retail and leisure sector received additional support:
  • Cash grants per business, up to £25k (for those with rateable value of <£51k) and whose insurance does not cover them for closure under a pandemic
  • Business rates holiday (12 months) for any business in these sectors, regardless of rateable value
• For individuals:
  • Agreed with all lenders a 3-month mortgage holiday for homeowners impacted by the coronavirus
• Will develop a new package of support measures in collaboration with businesses and unions, including looking at potential short-working time measures and where regulatory relaxation can be used to help businesses

N.B. SMMT has sought clarification from HMT and BEIS on whether a dealership is covered under the Government’s working definition of retail or not. Further advice will be provided in due course.