Business groups react to aid announced for self-employed

Self-employed people in Herefordshire will be able to claim support worth 80% of their average monthly profits in an “unprecedented” move to cover the impact of coronavirus, Rishi Sunak has announced.

The Chancellor of the Exchequer said the move – worth up to a maximum of £2,500 a month – would cover 95% of self-employed workers.

The package comes after the Government came under sustained pressure as its initial package of financial support only covered employees.

“To support those who work for themselves, today I am announcing a new self-employed income support scheme,” Mr Sunak said.

“The Government will pay self-employed people who have been adversely affected by the coronavirus a taxable grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month.”

The Chancellor said the scheme will be available “no later” than the beginning of June.

It is open to anyone with trading profits of up to £50,000 and will only be available to those who make the majority of their income from self-employment so only the “genuinely self-employed” benefit.

Michael Goodall, of the local branch of Federation of Small Businesses, said the support package will give much-needed help to vast numbers of self-employed workers.

“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.

“We have heard despairing stories from hard-working hairdressers, bakers, childcare providers, freelancers, drivers and many others, seeing the businesses they’ve spent years building dry up in a matter of days.”

Mr Goodall said it is many of those strivers who the package will support.

“The self-employed community underpins the UK economy. They are the individual risk-takers who don’t expect the same benefits as employees.

“In this moment of a collective national effort to overcome a global pandemic, today’s package is a significant, multi-billion-pound improvement on what was proposed last Friday.

“Although the deal is not perfect, the Government has moved a very long way today.”

Herefordshire Business Board chairman Frank Myers said he admired the government initiatives and the speed at which they have come up with them.

However, he warned the ‘proof would be in the pudding’ when the scheme is accessed by those that need it.

FSB has a comprehensive, comnstantly updated and free coronavirus information hub available online at https://www.fsb.org.uk/campaign/covid19.html