Emergency fund and tax payment delays among government support for riot affected businesses
Posted by Jon Wilcox in Business trends on Thu, 11/08/2011 - 14:24
The business secretary Vince Cable and communities secretary Eric Pickles, have announced a series of support measures for businesses affected by the on-going riots across England.
The Department for Communities and Local Government (DCLG) said the one-off measures announced by Whitehall “are part of concerted, cross-government action to help rebuild communities, open up shops and rebuild buildings which were damaged, make sure people who lost their homes are re-housed, and to help councils get their areas back to normal as quickly as possible”.
The package of measures announced by the government includes:
- A £10m recovery fund which it’s claimed will help enable councils with the “immediate costs” of making areas affected by the riots “safe, clear and clean again”. The government said the recovery scheme can also allow local authorities to offer council tax discounts or relief to “those whose homes have been damaged but are still habitable”.
- A £20m High Street Support Scheme has launched, jointly funded by the DCLG and Business Innovation and Skills (BIS). The support scheme is available immediately for areas and businesses affected by the rioting. According to Whitehall, the money is intended to finance “those measures that will get business trading again and meet short term costs. Councils will distribute the money and could use it to reduce business rates, finance building repairs and encourage customers back to the affected areas”. The scheme will also reimburse local authorities that offer rate relief for local businesses with three quarters of the cost.
The government also announced a re-housing fund would be made available “to meet the immediate costs of emergency accommodation for families who have been made homeless by the disturbances”.
Communities secretary Eric Pickles said: "Our priority is to get local communities back on their feet, get businesses up and running again and make sure nobody is left without a roof over their head. We will stand side by side with communities as they rebuild their lives. We are making immediate financial support available to those that need help and we will continue to work closely with councils who have already responded to this violence with calm, resolve and professionalism.
"It is not just for the state to support local firms affected by these criminal actions. I encourage every local resident to make an effort to shop locally in this and coming weeks and support the local high streets which are the lifeblood of our communities."
Business secretary Vince Cable said his department, like other central government departments, are currently working with local enterprise partnerships, local councils, and businesses “to ensure affected businesses have access to practical advice, information and support to get back on their feet as quickly as possible”.
Cable also announced further help and advice for businesses affected by the riots, including the obtaining of a crime number from police and contact their insurers, and confirmation that uninsured individuals and businesses suffering loss or damage of their buildings through rioting can seek compensation from their police authority under the Riot Damages Act. An extension for claims under the Act has also been made, from 14 to 42 days.
The business secretary also confirmed BIS is working with the British Bankers Association to ensure affected businesses “especially small businesses” will receive help: “The banks will sympathetically and sensitively consider the problems of each business. Additional financial support will be available should it be required to provide solutions for the affected businesses. These include for example, where necessary making available short to medium term finance arrangements for repairs and to replace stock, and repayment holidays until insurance claims are settled.”
HMRC is also to delay tax payments for businesses needing help through Time to Pay; the organisation has also launched a Civil Disorder Helpline (0845 366 1207) for those looking for comprehensive advice.
“I would like to express my appreciation to those business organisations whose members have been affected and who have responded with urgency to provide advice and support at this difficult time,” said the business secretary. “I would also like to thank all their members and local branches who have worked closely with the police.
Cable added, “The government recognises that the impact on business will continue beyond this immediate recovery period, and we will continue to work together with business organisations to identify what longer term help is needed.
“This is particularly true of our high streets which the government is committed to supporting and promoting. We will also work with the foreign investor community to restore confidence in the UK as a destination for investment. BIS Local will work closely with local enterprise partnerships and local authorities to secure a prosperous and vibrant future for our local high streets.”
The support for businesses announced by BIS and the DCLG have been reflected in a statement by the prime minister in the House of Commons today.
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