Thank you for contacting me about outdoor activity providers.
Outdoor activity centres provide a unique form of exercise and entertainment, making an important contribution to local communities. I recognise the difficulty that some outdoor activity providers must be facing during the coronavirus outbreak as well as the difficulties facing seasonal workers.
It is clear the economic effects of fighting COVID-19 last longer for businesses than the duration of any given restrictions, and we need to go further with our support. I welcome that the Coronavirus Job Retention Scheme has been extended until the end of April to give people and businesses across the whole United Kingdom the certainty they need over what will be a difficult winter. Under the extension the government will pay 80 per cent of wages up to a cap of £2,500, with employers paying employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work. Flexible furloughing will be allowed in addition to full-time furloughing.
The Coronavirus Job Retention Scheme (CJRS) was reviewed in January to ensure that the Scheme provides the appropriate level of support to businesses in whatever the economic circumstances may be at that time.
The CJRS has been extended until the end of April in response to new national restrictions. Under this extension the Government will pay 80 per cent of wages up to a cap of £2,500, with employers paying employer National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work. Flexible furloughing will be allowed in addition to full-time furloughing.
There will be therefore be no employer contribution to wages for hours not worked. Under the previous levels of support provided by the Scheme, the vast majority businesses paid no NICs or pension contributions. For an average claim, this accounted for just 5 per cent of total employment costs or £70 per employee per month.
I know this is a very difficult time for those who undertake seasonal work and I will ask ministerial colleagues to provide further guidance and clarity on support for those who are employed in seasonal occupations now that new restrictions are in place.
There is additional support available in the Coronavirus Business Interruption Loan Scheme (CBILS).
The CBILS provides financial support to smaller businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the coronavirus outbreak.
The loan scheme supports small and medium sized business, with an annual turnover of up to £45 million, with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. To cover the first 12 months of interest payments and any fees, the Government will also make a Business Interruption Payment (BIP), so businesses will benefit from no upfront costs and lower initial repayments.
The Government is providing lenders with a guarantee of 80 per cent on each loan (subject to pre-lender cap on claims). The scheme is being delivered through commercial lenders, backed by the government-owned British Business Bank. There are over 100 accredited lenders able to offer the scheme, including all the major banks.
CBILS gives the lender a government-backed guarantee for the loan repayments to encourage more lending. Under the scheme, personal guarantees of any form will not be taken for facilities below £250,000.
I am pleased that the Government intends to give Coronavirus Business Interruption Loan Scheme lenders the ability to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan. This provides additional flexibility for UK-based SMEs who may otherwise be unable to repay their loans. In addition, I'm delighted that the deadline for applications for this loan scheme has been extended to the end of March 2021.
More information on the scheme, including the list of accredited lenders, is available on the British Business Bank website (https://www.british-business-bank.co.uk).
Thank you again for taking the time to contact me.
Craig Whittaker MP
February 2021