September 2020 News Update – featuring additional news developments from our newsletter series
Rishi Sunak has revealed his winter economy plan which replaces the autumn budget due to unprecedented economic uncertainty, resulting from the COVID-19 outbreak. These are provided by Credit Safe. Thousands of small to medium businesses in England could benefit from £20 million of government funding to help access new technology and other equipment and professional, legal, financial or other advice to help them get back on track. Small and medium sized businesses of between £1,000 – £5,000 to help them recover from the effects of the coronavirus pandemic. Full blog coming soon. Contact Prestige Business Management To find out more. Prestige Business Management is pleased to be able to offer a new feature. We can now provide credit reports on any company for £20. The government has recently confirmed that the minimum age for drawing a personal pension in the UK is to rise to 57 in 2028. Savers can currently access their money at 55. This change will affect workers currently aged 47 and under. In Germany a small trial of a universal basic income, is about to begin. A three-year study of how it affects the economy and well-being of recipients, compared with a group not receiving the payment.
Minimum Pension Age Raised to 57 Years
The minimum age for drawing a personal pension in the UK is set to rise to 57 in 2028, the government has confirmed. Savers can currently access their money at 55, but in 2014 the government announced plans to raise the age as a result of increased life expectancy. The change, which will affect workers currently aged 47 and under. The anticipated change in Controlled Contribution (DC) pensions was confirmed this month in a written ministerial statement issued by Treasury Secretary of the Economy John Glenn. Glenn said: “In 2014, the government announced that it would raise the minimum pension age to 57 from 2028, reflecting longevity trends and encouraging individuals to stay in work, while also helping to ensure lifetime retirement savings.” Also “This announcement set the timetable for this change well in advance to enable people to draw up financial plans and legislation would be enacted in due course.” Workplace and state pensions are not affected by this change. Giving plenty of advance warning this time, unlike with the increase in state pension age for women from 60 to 65. The extra two years aims to give people time to put more into their funds. Hopefully better enabling an adequate level of income to support this generation of retirees. Anyone planning to access their pensions at 55 but now can’t do so for a further two-year period, may want to consider funding Isas to use as a bridging function to cover this period.
Germany to Trial Universal Basic Income
Germany is about to become the latest country to trial a universal basic income, starting a three-year study of how it affects the economy and recipients’ well-being. As part of the study, 120 people will receive €1,200, or about $1,430, each month for three years, an amount just above Germany’s poverty line. Researchers will compare their experiences with another group of 1,380 people who will not receive the payments. The study, conducted by the German Institute for Economic Research, has been funded by 140,000 private donations. Participants will be asked to complete questionnaires about their lives, work, and emotional state to see whether a basic income has had a significant impact.
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What You Missed From Our Blog – Summary
Winter Economy Plan Revealed
Rishi Sunak has revealed his winter economy plan which replaces the autumn budget due to unprecedented economic uncertainty, resulting from the COVID-19 outbreak, first detected in the UK in Spring 2020. Central to this winter economy plan is a new Job Support Scheme, an extension of Self Employment Income Support Scheme and over one million businesses to be afforded flexibilities, to help pay back government support loans. The Chancellor Rishi Sunak has outlined additional government support to provide certainty to businesses and workers impacted by coronavirus across the UK, with a cluster of new support schemes which make up his winter economy plan. The details of the winter economy plan hint to the government’s expectations for the UK economy over the coming winter months. As previously described, they expect ‘hard times’ and have before hinted at a ‘fiscal event’ in place of the abandoned autumn budget, which is what we see in a raft of business survival packages. The Chancellor announced his winter economy plan in Parliament, which aims to protect jobs and help businesses through the uncertain months ahead as ministers continue to tackle the spread of the virus. The winter economy plan includes a new Jobs Support Scheme to protect millions of returning workers, extending the Self Employment Income Support Scheme and 15% VAT cut for the hospitality and tourism sectors, and help for businesses in repaying government-backed loans. Click here to read more.
Kickstart Scheme to Address Youth Unemployment
The landmark Kickstart scheme is providing funding to employers to address youth unemployment by creating new, six month job placements for young people, who otherwise face long-term unemployment, as a result of the outbreak of Covid-19. As part of the Chancellor’s ‘Plan for Jobs’, the Kickstart scheme aims to create hundreds and thousands of new, fully funded jobs across England, Scotland and Wales to address youth unemployment. The first placements are likely to be available from November. In 2020 more than 700,000 young people are set to leave education and enter the job market. Yet since March, when the UK’s full lockdown was introduced, a quarter of a million more people aged under 25 have been claiming unemployment benefits. The scheme aims to create government-subsidised jobs across the UK for 16 – 24 year olds who are currently on Universal Credit and at risk of long-term unemployment. After completing a six month placement, there will be extra funding support to help young people build their experience and help them move into sustained employment to address youth unemployment. Click here to read more.
September’s Top Tips from Prestige Business Management
We announced last month that the UK has officially entered its largest ever recession on record, triggered by the outbreak of Covid-19. Here’s how to recession proof your business today.
1. Make a Plan
Make a practical plan of what needs to be done versus what can wait, or may even become unnecessary under the current economic climate. List your essential expenses and be realistic. Don’t cut any roles you can’t live without. Some could simply be reduced to part time relative to the shrinkage in revenue.
2. Great Client Relationship Management
We all appreciate loyal clients. It pays to remember that clients everywhere will be facing their own unique challenges in recession. So any way that you can help them achieve that loyalty, will go a long way in this economic climate. Perhaps it’s a more flexible booking system, or taking the time for an honest appraisal of how things really are for them, now and then.
3. Hold On To Your Best Employees.
Take care of your best employees. In a recession their first priority is to take care of their families. Make sure you are part of that solution with great communication and making reassurances you can keep. Don’t let them burn out by unnecessarily overworking trying to impress you. Offer temporarily reduced hours or a change in job description if necessary.
4. Use Social and Content Marketing
Maintain a presence with your audience through online marketing and interactive or meaningful content. When the recession eases, consumers will remember best the businesses that maintained a positive presence throughout the hard times.
5. Use Technology to Streamline Your Running Costs
There’s no better money-saver than the latest technology. Accounting software packages are one of the best timesavers out there. Automate your income and expenditure with Making Tax Digital ready software that is a breeze to use. Prestige Business Management can offer access to the best software available through our accounting packages. We provide QuickBooks training and support. And access to 1Tap Prime Unlimited provided by Receipt Bank. We’ll provide exactly the support you need. You could discover new online tools to complete your projects for a lower cost.
Try to find ways to be responsive to the financial environment. We can help you streamline your practices and learn what schemes and measures your business can benefit from during an economic crisis. Change can be rapid in such times, but we are well positioned to help you navigate and innovate. We are always on hand to appraise your business development and ideas.
Make the most of your team’s best skills. Meet regularly online and allow staff to voice their perspective. Job shares and a reshuffling of tasks and objectives could benefit the successful running of your business during recession.
It seems natural to ease off on business development plans during a recession. However better communication with your client base can lead to some valuable insights into your market while turnover is slow. Set appointments in your schedule to network, test out thoughts about new strategies and gauge the market for your forthcoming productivity.
9. Continue Marketing Your Business
Set aside an achievable marketing budget. It is a misconception that cutting out marketing will save your business money during a recession. More than ever you need to bring in new business during a downturn. No part of your business can be cut entirely, so focus in on where your best leads come from and try to build on that success and knowledge.
10. Invest in Better Financial Management
Robust financial management could give you a whole new perspective on the scope of your business, particularly during a recession. Prestige Business Management can help you analyse your cash flow and recommend strategies according to your market position.