Responding to the Government’s announcement of further support
for jobs and companies affected by coronavirus restrictions,
Roger Barker, Director of Policy at the Institute of Directors,
said:
“It is absolutely right for the government to step up its
support, which must match the restrictions businesses are being
put under. This new intervention should provide a lifeline for
many companies and people impacted by the efforts to stop the
virus spreading. Alongside wage support, ramping up grants for
affected firms marks a sensible step.
“The Government should also remain alive to the potential
second-order impacts of local lockdowns - which will affect firms
in other areas and across the supply chain. Discretionary grants
allocated through local authorities could help to address these
issues, as could further modifications to the Jobs Support
Scheme.
“With the resurgence of the virus hitting more and more parts of
the country, the Government’s decision not to renew a key
insolvency measure simply must be revisited. Reinstating wrongful
trading liability adds to the pressure on directors to pull the
plug on their companies, when long-term viability is still far
from clear. It makes little sense to have supported these
businesses through the summer, only to let them collapse in the
winter.
“The Treasury has understandably focussed on defensive measures,
but it should also try to get on the front foot where possible.
To help those firms who are finding chinks of light to create
jobs, employer national insurance costs should be cut. Tax
reliefs to support substantial investment in technology, the
green economy, and skills will help create new opportunities to
replace those being negatively impacted by the pandemic.”
