BUSINESSMAN BRIAN HENNEY FEELS 'ABANDONED' ON BEHALF OF ENTREPRENEURS AND SUB-CONTRACTORS

THE Government has been accused of "abandoning" Atherstone's army of entrepreneurs on the day its scheme to support businesses and help safeguard jobs in the wake of the coronavirus pandemic has opened for applications.

Outgoing Atherstone Town Football Club chairman Brian Henney said he felt let down as three quarters of five million self-employed business people will "get nothing out of all this".

And the boss of air conditioning specialists Cubic Apple argued that the parameters of the furlough schemes on offer did not cater for the self-employed who rely on a business philosophy where sales, and not profit, is income.

Mr Henney, in addition a consultant in the recovery business sector, also criticised North Warwickshire MP Craig Tracey for appearing to leave behind the "very people he said he was supporting – the self -employed – and was one them himself once."

Last month Atherstone's MP promised local businesses more measures were "high" on his agenda as Prime Minister Boris Johnson was "actively considering further steps" to help self-employed workers through the coronavirus crisis.

Mr Henney told Nub News: "The self-employed and sub-contractors are the ones that are going to get the country out of this mess when this is all over, and they are being forgotten."

The Coronavirus Job Retention Scheme went live on Monday with businesses able to claim towards staff wages.

The launch of the scheme comes as the Government was warned of the economic cost for many companies of any delay in its implementation.

Most firms across the UK only have up to three months' cash in reserve as they deal with a huge fall in domestic and overseas revenue, a study revealed at the beginning of this month.

Research by the British Chambers of Commerce indicated that almost one in five firms have less than a month's worth of cash.

A survey of 600 businesses found that almost half expect to take advantage of the Government's coronavirus job retention scheme, which covers 80 per cent of the wages of furloughed workers, to a maximum of £2,500 per month.

A third of those polled said they were planning to furlough between three-quarters or all their staff in the next week, while one in four said they would not use the scheme.

Two out of three firms said they were embracing remote working, with half using video conferencing.

Almost a fifth of those surveyed said they had closed their business temporarily.

More than half of the jobs in some sectors of the UK economy are at risk if the lockdown continues for an extended period, according to a poll by the Institute for Social and Economic Research at the University of Essex which suggested the lockdown threatens to temporarily take at least 6.5 million jobs out of the economy – around a fifth of the national total.

Under the furlough scheme, employers can go online to claim cash grants worth up to 80 percent of wages, capped at £2,500 a month per worker.

Approximately 5,000 HMRC staff will operate the scheme, intended to assist thousands of UK firms, with the money due to reach bank accounts within six working days, a statement from the Treasury said.

Phone lines and web-chat services will be available to help answer applicants' questions, with the scheme launching 10 days ahead of schedule, it added.

The Chancellor earlier announced the scheme will be extended for a further month until the end of June, in light of the ongoing countrywide Covid-19 lockdown.

Business people can also apply for the Government's Self-employment Income Support Scheme with an entitlement of 80 per cent of average profits up to a maximum of £2,500 per month.

But the criteria for using the scheme is based on self-employed profits must be less than £50,000 per year and must make up more than half of the total income.

The Government will look at tax returns from the previous three years and be eligible businesses will have to have lost profits due to coronavirus; submitted tax returns for the tax year 2018/19; and done this by this Thursday (April 23); as well having earned self-employed income in the tax year 2019/20.

If eligible, the Government cash covers until at least the end of June 2020.

BCC director general Adam Marshall said: "Our research indicates that two-thirds of firms have furloughed some portion of their workforce. "With April's payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible. Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses." "The coronavirus pandemic has taken a heavy toll on business and economic activity across the UK. "While businesses have welcomed the unprecedented size and scope of the Government support packages, our findings highlight the urgent need for that support to reach businesses on the ground as soon as possible. "The majority of firms cannot wait weeks or months for help to arrive." Footnote: Some 67,000 applications for the coronavirus job retention scheme were made in the first 30 mintues this morning.