This Week in Public Affairs: 25 September 2020

Winter Economy Plan

Yesterday the Chancellor unveiled the Winter Economy Plan, outlining financial support measures for businesses and workers impacted by coronavirus.

The Job Support Scheme (JSS) will start on 1 November and run for six months. The Job Retention Scheme, which allows businesses to furlough employees, will end on 31 October.

Under the JSS, workers who have their hours cut will receive payment for two-thirds of the hours they do not work. One third will be paid by the government, and another third by the employer. The hours worked will also be paid by the employer.

For example, if an individual usually works 40 hours a week, and has their hours cut to 19 hours a week they will be paid for 33 hours a week. Their employer will pay for the 19 hours worked and one third of the cut hours (7 hours). The government will reimburse the cost of another 7 hours.

Further support for business include the extension of the 15% VAT cut until March, and extensions for businesses who have taken out government loans through CBILS, bounce back loans and the Future Fund. You can read more about the government support schemes and how to apply here.

You can read the AA’s statements on the Chancellor’s announcement here and the new COVID-19  restrictions here.

Government

The AA remains in regular dialogue with Ministers and civil servants. This week Stephen joined a roundtable hosted by Business, Energy and Industrial Strategy (BEIS) Secretary of State Alok Sharma MP to discuss opportunities for the UK post-Brexit as we near the end of the transition period. Stephen highlighted the importance of a competitive and pro-business regulatory framework for data, as well as lobbying for support via DIT for cross-industry export initiatives and match-funding with industry. Stephen was also able to raise the AA’s proposals for an advertising tax credit and Sector Skills Grants.

Europe

This week we worked with our European colleagues in the Advertising Information Group (AIG) to write to MEPs regarding concerns over the compromise amendments to the draft report “Towards a more sustainable single market for business and consumers”, which contains statements about the role of advertising and calls for restrictions for marketing and advertising, as well as an advertising tax to offset supposed negative externalities resulting from increased consumption. The group has argued that advertising should be regarded as part of the solution, as it has an important role in promoting both sustainable production and consumption.