Coronavirus update: Government promises more financial support for nail & beauty businesses
By Helena Biggs | 18 March 2020 | Movers & Shakers, News
Further to initiatives outlined in the Budget 2020 announcement, the government has promised greater financial support for small businesses amidst the coronavirus outbreak.
The government has advised for people to avoid social interaction to try and halt the spread of the virus, which in turn is having a huge impact on nail, hair and beauty salons that rely on interaction with clients.
Under pressure from businesses and trade bodies, the government has extended the financial support available to salons. Here, the NHBF summarises the key points:
- No business rates for salons of any size, not just those with a rateable value below £51,000.
- A Bill is going through Parliament on Wednesday 18 Marc to ensure statutory sick pay (SSP) is paid from day one rather than day four, backdated to take effect from 13 March 2020.
- Businesses with a rateable value of less than £51,000 can access an additional cash grant of up to £25,000.
- Businesses which don’t pay business rates because they benefit from small business rates relief will see the £3,000 cash grant announced in last week’s Budget extended to £10,000.
- Three-month mortgage holidays for those in financial difficulty due to coronavirus.
- Business loans on ‘attractive terms’, including a business interruption loan scheme which will provide loans of up to £5m, interest-free for six months, starting as soon as next week.
“The government has promised some welcome relief for businesses which will struggle to survive under the latest measures to control the spread of coronavirus,” comments Ian Egerton, NHBF president. “But speed is of the essence – this additional support needs to be made available right now when hair and beauty salons need the support most. If clients stop coming into salons, hair and beauty businesses can’t continue paying employees or paying their bills.”
Hilary Hall, NHBF chief executive
Hilary Hall, NHBF chief executive adds: “Wages are by far the biggest cost for salons. If the current crisis continues for any length of time, we will need more government support including rent holidays, suspension of tax payments such as PAYE, VAT or corporation tax and delaying planned increases to the National Living Wage/National Minimum Wage.
“Without that support, we will see salons going out of business and many people will be out of work with no means of supporting themselves for a prolonged period of time.”