On 28th May 2020 the Prime Minister announced that the tests for easing the lockdown restrictions have been met and today, Phase 2 of the restart has commenced. The announcement of Phase 2 was supported by the launch of the Test and Trace system.

From today, 1st June 2020 up to 6 people will be allowed to meet outside in private gardens and other private outdoor spaces, as long as those from different households continue to observe social distancing rules.

From 15th June 2020 all non-essential retail businesses will open, subject to continued progress on the R infection rate and premises being COVID-19 secure. To support this, the Government issued new business guidance containing 3 key steps these businesses must take:

1. 1. Display a notice showing they have followed the Government guidance and confirming they have carried out a COVID- 19 risk assessment and shared results with employees.

2. 2. Take precautions with the use and cleaning of customer fitting rooms, as well as in dealing with clothes that have been tried on.

   3. Implement steps to limit and mitigate the risks associated with the handling of goods.

Challenges to be faced by businesses will include lack of clarity on the use of face-coverings by staff and customers, as well as the issue of employer liability if virus cases are confirmed on site.

With respect to the Job Retention Scheme, the Chancellor announced that from 1st July 2020 businesses will be given flexibility to bring furloughed employees back part-time. This is a month earlier than was previously announced and will help more employees to return to work gradually and safely.

From 1st August 2020, employers will have to pay employer National Insurance contributions together with pension contributions for furlough pay. The Government shall continue paying 80% of furlough pay. However, from 01st September employers will have to pay 10% of furlough pay, as well as employer National Insurance contributions together with pension contributions with the Government paying 70% of furlough pay. From 01st October 2020 employers will have to pay 20% of furlough pay, as well as employer National Insurance contributions together with pension contributions with the Government paying 60% of furlough pay. The Job Retention Scheme will close on 31 October 2020 and from 01st November 2020 the employers will have to pay 100% of wages, including employer National Insurance contributions and pension contributions.

It has been the hardest 9 weeks to run a business and the Government’s support throughout the lockdown so far has been a lifeline for many. However, leisure, hospitality and the creative industries may not be able to open until later and may need further assistance in the coming months.

Turning to access of finance, the Chancellor also announced an extension to the Self-Employment Income Support Scheme which has so far seen 2.3 million claims worth £6.8 billion. Those eligible will now be able to claim a second and final grant in August 2020 capped at £6,570.

It was announced that approximately £27 billion has been lent to businesses across the country.

For small businesses, £18.49 billion has been lent through the Bounce Back Loans, with almost 80% of applications being approved. For SMEs, £8.15 billion was lent though CBILS, with an approval rate of approximately 50%, and for medium size firms, just under £360 million has been lent via CLBILS, with around 30% of applications approved.

Finally, on the Government’s 14-day quarantine policy for people arriving to the UK from abroad, clarity is needed in the following areas:

1. 1. Which types of workers will qualify as ‘workers with specialist technical skills’ required for essential or emergency works? How the exemptions align to specific professions?

2. 2. Are decisions subject to interpretation by Border Force officers? Who can enforce them?

3. 3. What is the appropriate accommodation for self-isolation? Will a relative’s house in the UK qualify?

4. 4. What criteria will be used to inform the 3-week review?

5. 5. What is a scope for air bridges and/or international travel corridors to be established with strategically important low infection-rate countries? What will be the conditions for visitors arriving from high infection-rate countries?

6. If you would like to discuss how to manage the return of your workforce from furlough leave, or in the worst case scenario, deal with redundancies, please do contact us on 01484 821344 and irinapolyakova@eatonsmith.co.uk.