Chancellor’s rescue package given cautious welcome

Manchester night time economy tsar Sacha Lord has given a cautious welcome to the Government’s package of aid for self-employed workers.

The man behind the Warehouse Project and Parklife Festival works with Manchester’s mayor Andy Burnham,

And he also represents the thousands of bars, pubs and restaurants across the city.

The sector has been particularly hard hit by the coronavirus crisis.

Chancellor Rishi Sunak yeterday said self-employed people facing financial difficulties will be able to have 80% of their monthly wages covered by the UK Government.

Chancellor Rishi Sunak

Sacha Lord said: “The financial measures provided for small businesses and employees were very welcome last week, as is the Income Support Scheme package announced for the UK’s five million self-employed workers.

“Opening the disruption loan facility, and deferring the Self Assessment income tax payments will also undoubtedly help those who are struggling.

“But we must remember that the UK’s contractors, freelancers and gig economy workers are the backbone of our labour market, and support many of our biggest sectors. I worry that many sectors will be unable to recover if these individual suppliers go under.

“It’s a complicated package, and I agree with the £50k eligibility cap, but I am concerned that the financial aid may not reach those most impacted by this crisis quickly enough, and the outcome could be grave.

“I have spoken to countless employees and workers across Greater Manchester in the past weeks, many of whom are already struggling and are anxious about the crisis and how it will affect their daily lives.

“Across the UK, millions have already instantaneously lost work as a result of this crisis, and don’t have the financial means to tide themselves over and make ends meet this month, let alone until the start of June. Combined with the difficulties we have already seen with delays in Universal Credit, the wait to access finance could critically damage the livelihoods of millions of people.

“I’m also particularly concerned for those who only started a business within the past 12 months. It’s unlikely they have made a profit as a new business, so this is an area that will need to be addressed in terms of offering them greater welfare support. We need to ensure everyone is fairly supported through these times, and no one is forgotten about.

It’s fair to say that all workers – either employed or self-employed – need urgent financial help, and they need it now. I hope that the measures announced today can come to fruition quickly, and I will be working closely with the Mayor of Greater Manchester, Andy Burnham, to help those living across the city-region as much as possible.”

British Chambers of Commerce director general Dr Adam Marshall said: “The Chancellor’s announcement offers a lifeline to the vast majority of the UK’s 5m self-employed people, many of whom have seen their livelihoods vanish overnight.

“Chambers, along with other business groups, have worked constructively with government to ensure the self-employed receive similar support to those who are employed through PAYE.

“We welcome the scale of this scheme and recognise the complexities involved in its design. It is now critical that the government delivers this practical support to people on the ground as soon as possible.”