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Cautious welcome for self-employed aid

Business leaders in the West Midlands have given a cautious welcome to Chancellor Rishi Sunak's support package for self-employed workers.

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Corin Crane, chief executive of Black Country Chamber of Commerce

Corin Crane, chief executive of the Black Country Chamber of Commerce added: “I welcome these announcements, they are encouraging for those across our region who are self-employed, and it must come as a huge relief to many people.

"We will now speak to our members and monitor the feedback from those who will benefit from these measures as we will continue to advocate and lobby on their behalf."

The Black Country Chamber will continue to monitor developments and businesses can contact the chamber's support line on 01902 912322.

Greater Birmingham Chambers of Commerce has welcomed the scheme in principal but warned the Government must act urgently to help businesses access the cash.

Chief executive Paul Faulkner said: “In some ways, self-employed individuals across the country will be breathing a sigh of relief. The support announced is rightly equitable with the support offered to employed individuals and much needed.

“However, as the Chancellor acknowledged, the scheme may not actually be available and paying out until June. There are several months of bills, overheads and living costs between now and then."

Mr Faulkner said the urgent need is for businesses to access cash and the chamber would encourage the Government to continue to focus on finding the most straightforward methods for doing so.

Mr Sunak announced that self-employed people will be able to apply for a grant of up to £2,500 a month to help them cope with the financial impact of COVID-19.

They can apply for a grant worth 80 per cent of their average monthly profits over the last three years, up to £2,500 a month.

The money will be paid in a single lump sum, with Mr Sunak stating it will arrive “by the start of June”.

He said the grants would be available for at least three months and 95 per cent of people who earn most of their income as self-employed would be covered

HMRC will contact self-employed individuals directly and invite them to complete a form to pay this scheme directly into bank accounts.

National chairman of the Federation of Small Businesses Mike Cherry, a businessman in Staffordshire, said: “This bold support package from the Government will give much-needed help to vast numbers of self-employed workers, guaranteeing 80 per cent of income to those affected, with earnings of up to £50,000.

“This is a time of national emergency, and it is very welcome that the Government has listened to FSB and responded with a multi-billion-pound package to support the most financially vulnerable entrepreneurs, and to do so through the self-assessment system.

“This follows help in the Budget and since, that was aimed squarely at small businesses such as a cut in the jobs tax, cover for small employers that cannot pay their employees, business rates holidays, cash grants, mortgage holidays, rent protections, and interest-free, fee-free loans. We hope the raft of support will keep as many small businesses as possible afloat."

Adam Marshall, Director General of the British Chambers of Commerce said: 'The Chancellor’s announcement offers a lifeline to the vast majority of the UK’s five million self-employed people, many of whom have seen their livelihoods vanish overnight. Chambers, along with other business groups, have worked constructively with government to ensure the self-employed receive similar support to those who are employed through PAYE. We welcome the scale of this scheme and recognise the complexities involved in its design. It is now critical that the government delivers this practical support to people on the ground as soon as possible."

Dame Carolyn Fairbairn, Confederation of British Industry Director-General, said: “Many self-employed people across the UK will be hugely relieved. These new measures will provide essential support to those facing significant uncertainty and loss of income.

“Given the complexity of the task, it’s understandable this will take time to deliver. Fast clarity on how and when money will reach their bank accounts will help individuals to plan."

The Government had been under growing pressure to support the self-employed with a similar package of measures as introduced for employed worker after the Chancellor promised to pay 80 per cent of salary for staff employees who are kept on by their employer, covering wages of up to £2,500 a month.

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