What was the purpose of the Chancellor’s economic update?
On Wednesday 8 July 2020 as part of a summer ‘mini-budget’, Rishi Sunak delivered the Government’s response to the threat to millions of jobs due to the existing furlough arrangements being wound down from August 2020 until it planned to close at the end of October 2020. In a wide-ranging speech to Parliament, the Chancellor announced a number of schemes to look to protect jobs beyond October 2020, in particular in certain sectors and for those aged 18-24. As the Government releases further information over the coming days and weeks, we will add to these FAQs.
Related FAQs
The Confederation of British Industry
“What you need to know about coronavirus and how it will impact your business”. This includes the very influential and highly regarded daily webinars hosted by Director General Dame Carolyn Fairburn.
https://www.cbi.org.uk/coronavirus-hub/
The Entrepreneurs’ Forum
Links to valuable resources collected by the Entrepreneurs’ Forum team as requested by its members and partner network, including on People, Finances, Physical and Mental Wellbeing, Technology and Leadership.
https://entrepreneursforum.net/support-hub
RTC North
Billed as containing “all the UK government information in one place”, this resource includes information on access to finance, employees, planning and leadership, Growth hub toolkits, and working from home.
https://www.rtcnorth.co.uk/covid-19/
Newcastle Gateshead Initiative (NGI)
Businesses across the UK and around the world are sharing their expertise in everything from remote working to business planning. The team at NGI have collated some of the most useful resources, alongside its own content which is designed to help partner organisations and other businesses across North East England.
https://www.ngi.org.uk/covid-19-business-resources/
North East of England Chamber of Commerce
The NEECC brings together its latest advice and guidance for businesses, as well as some of its own FAQs.
https://www.neechamber.co.uk/covid-19
Greater Manchester Chamber of Commerce
The Chamber has pulled together information about how it and others in the area are supporting all businesses during the Covid-19 outbreak.
https://www.gmchamber.co.uk/covid-19-coronavirus/
North East Growth Hub
The North East Growth Hub toolkit is intended to provide businesses with the latest advice, guidance and support available from government in response to the COVID-19 pandemic. Topics covered include:
- Financial support available for businesses
- Official guidance for employees, employers and businesses
- Advice on effective home working
- How to care for staff/suppliers/customers and prevent the spread of COVID-19
https://www.northeastgrowthhub.co.uk/toolkits/covid-19-coronavirus-toolkit
Pro-Manchester
Links to valuable resources collected by the Pro-Manchester team, including national Government support and advice, regional support and cyber security advice.
https://www.pro-manchester.co.uk/home/covid-19-support/
Innovation SuperNetwork
The Innovation SuperNetwork, a “network of networks”, detail on their website what their team of Innovation Managers are offering during these difficult times, as well as details of funding available, and what is being offered by their numerous partners.
The Construction Leadership Council (with backing from the Government) has issued practical guidance and draft pro-forma documents to enable all parties involved in the construction supply chain to enter into collaborative and open dialogue about applications for extensions of time and additional payment and to minimise potential disputes. The guidance can we downloaded here
The draft letters and notices included in the guidance have been prepared on the basis of the standard JCT Design and Build 2016 and NEC 3/4 Engineering and Construction Contract (Option A) and parties will need to make sure that they are completed/adjusted to comply with their own specific contracts.
The Cabinet Office has also issued a general statement calling on parties to contracts adversely affected by C-19 to act responsibly and fairly and to support national efforts to protect jobs and the economy.
If you consider the factors used to determine status you can include the following terms that are more in line with a self-employed relationship:
- The right to provide a substitute of the contractor’s choice in the event the individual is not able to perform the services;
- The ability to work for other businesses as long as doing so will not affect the services to be provided by the contractor;
- The contractor should have sufficient control over how, when and where (if possible) they provide the services;
- A degree of financial risk can be included for unsatisfactory work or failing to complete a project or task
We have terms that cover all of these points that can be tailored to your needs. The consultancy agreement is included in our IR35 toolkit.
You should already have a written furlough agreement with your furloughed employees, but if you move them to flexible furlough then you need a new agreement that confirms the new furlough arrangement.
So, you’ll need to speak to your employees and confirm the hours of work with them in writing (or reach a collective agreement with a recognised Trade Union.
As before, an employee does not need to provide a written response. But the agreement needs to be documented in writing.
Some of these can be implemented by you, some need agreement or consultation and some depend on the wording of contracts. We’ll explain more in relation to each option.