Lawyers at one of Shropshire’s largest law firms have said Rishi Sunak’s “interesting budget” is likely to be welcomed by many businesses.
Brian Evans, Managing Partner of Lanyon Bowdler, said: “Although not billed as an ‘emergency budget’, the Chancellor took the opportunity to include a range of measures to minimise the economic impact of the coronavirus outbreak, including measures on statutory sick pay, and business interruption loans, which will be welcomed by small businesses, and especially those in the retail, leisure and hospitality sectors who will benefit from not having to pay business rates for 12 months.
“It was an interesting budget, and not, perhaps, the kind of budget that might have been expected from a Conservative Chancellor, with a significant increase in public spending on infrastructure projects and housing.
“It is to be hoped that this will result in Shropshire businesses benefitting from a levelling out of the economy and more widespread geographical sharing of economic growth.
“The commitment to spending on bringing gigabit-capable broadband to hard to reach places will also help in this regard.
“With uncertainties over the future of financial support for the agricultural sector and the future trading environment with Europe for agricultural produce, farmers can at least take some comfort from the fact that although ‘red diesel’ subsidies will be scrapped for most people, they will remain for farmers.”
Amongst the measures announced in the budget were further changes relating to statutory sick pay in light of the coronavirus outbreak.
John Merry, head of employment at Lanyon Bowdler, said, “These follow the previously announced change which will mean that statutory sick pay will be paid from the first day of absence, as opposed to not until the fourth day.
“The Chancellor has also clarified that statutory sick pay will be available to all employees who are advised by their GP or NHS 111 to self-isolate, even if they have not yet presented with symptoms – albeit that many lawyers have been advising that this was already the position.
“There was also confirmation that there will be no need for employees to go to their doctor for a sick note, which will be made available by the NHS 111 service.”
In a move that will provide financial support to smaller businesses, the cost of statutory sick pay for any employee off work in relation to coronavirus for up to 14 days will be refunded by the government to employers which have fewer than 250 employees.
Mr Merry added: “Many employers will exercise discretion to pay employees who are advised to self-isolate in full in order to encourage them to stay at home – even if they are not contractually entitled to full pay in those circumstances.
“In any event, employers may face significant costs in relation to sick pay – whether statutory or contractual – as a result of high levels of prolonged sickness, and perhaps with individual employees being caused to have two or more spells of self-isolation.
“However, the government’s decision to refund some statutory sick pay will no doubt be welcomed by the businesses who will qualify.”
