Dorset businesses plea for furlough extension
The Chancellor will make the 2021 budget announcements today
Dorset businesses say an extension to the furlough scheme is essential to keep them going through the roadmap out of lockdown.
The Chancellor is set to make a series of announcements when he delivers his budget at 12:30pm today (3 March) about how the government will support businesses going forward.
Rishi Sunak faces a difficult balancing act when he sets out his Budget on Wednesday - how to begin the task of dealing with the black hole in the public finances while also supporting families and businesses hit hard by coronavirus.
If all goes to plan, social distancing measures will end on June 21st, meaning it’ll be back to business for many shops, pubs and restaurants who’ve been closed for over a year.
Before they get there, many are calling for a last round of support from the government.
Craig Oakes is the President of Weymouth and Chamber of Commerce.
He told Greatest Hits Radio Dorset:
“If you’ve got businesses that are closed, then obviously those businesses cannot afford to pay their staff.
“Effectively the only thing you can do is to keep the furlough situation in place until some such time that they can open up and you can have a period of time, when the economy can start to move again and those wages can then be paid for by the businesses that have that staff.”
Hitting big businesses
Corporation tax also appears in line for a hike, with Joe Biden's plan to raise taxes across the Atlantic giving the Government political cover to increase the rate while still maintaining international competitiveness.
Mr Sunak is thought to be considering an increase in the tax on profits from 19p in the pound to between 23p and 25p.
It is also worth keeping an eye on the timing of any tax rises and how they will fit in with the next general election, due in 2024. Could the Chancellor be thinking of increases now, only to have a pre-election giveaway later?
Sandy Jordan runs a jewellery business in Dorchester. She says at Jordan’s Jewellers she relies on footfall to bring in new business. She’s moved online too during the pandemic, but she can’t compete with big businesses.
Sandy told Greatest Hits Radio Dorset:
“For me in particular, being a jeweller, a lot of our sales are really emotive.
"You need to buy it when you see it because it’s not something you’re going to be able to order in."
She has a number of things she wants the chancellor to do:
“Help me protect my workforce, help me to remain in business, make it easier for me. The furlough scheme being extended; great, limit any tax rises.
“Each year the minimum wage is going up, and the cost of running a business on the high street goes up every year, and yet people that are buying online don’t have the same tax situation.
“We all are aware there are several really large companies who aren’t paying any tax. Let’s go after the bigger guys rather than the little guys who are trying to do their best just to survive and stay on the high street.”