March 13, 2020
Business Implications of Budget 2020
Did you watch it? Chancellor Rishi Sunak announced his first budget on 11 March 2020. So, what’s changed? And what are the business implications of budget 2020? Read on to find out.
What’s Changing for Businesses?
Payroll Implications & COVID-19
- Statutory Sick Pay (SSP) will be available to those who self-isolate. Appropriate fit notes will be issued where necessary by the NHS 111 service.
- The costs of SSP to businesses with fewer than 250 employees will be met by the government. Payments will be for up to 14 days sickness and reimbursed in full.
- A Coronavirus Business Interruption Loan Scheme will enable banks to loan up to £1.2m to SMEs.
- All those advised to self-isolate will be entitled to statutory sick pay, even if they have not presented with symptoms.
- Self-employed workers who are not eligible will be able to claim contributory Employment Support Allowance.
Implications for HR
The Government is planning an emergency bill to deal with the outbreak. The bill should go before Parliament before the end of the month. Details of the provisions are still to be confirmed, but the main implications for employers are likely to be:
- The extension of SSP into the current 3 day ‘waiting period’ for those diagnosed with COVID-19 – this has already been announced by the Prime Minister
- Job protection for employees who are existing NHS volunteers. There are currently three million NHS volunteers, many of whom have paid employment elsewhere. If they step forward to volunteer full-time for the NHS through the crisis, for a period of up to four weeks, employers will not be permitted to take any action against them for this absence.
For further reading, check out the GOV.UK website.