Thank you for contacting me about support for small company directors.
I am incredibly sorry to hear of your financial hardship during this challenging time. Small business directors, such as yourself, drive the economy forward and provide significant employment opportunities to many people across this country. Unfortunately, I am unaware of any plans to introduce a support scheme specifically for company directors.
I welcome the range of measures the Government has introduced to protect small businesses during this time (including almost £300 billion of guarantees), some of which will benefit company directors. If you are a company director paid through PAYE, you are eligible to claim through the Coronavirus Job Retention Scheme, provided you meet the relevant conditions. Furthermore, the Retail, Hospitality and Leisure Grant Fund, the deferral of VAT payments and the Coronavirus Business Interruption Loan Scheme are only some of the measures the Government has put in place to protect small businesses. I urge you to visit https://www.gov.uk/coronavirus/business-support to see if you are eligible for any financial assistance.
The Government has also taken a number of steps to protect individuals who are facing financial difficulties because of coronavirus. A temporary ban on rental evictions has been introduced which will run until at least 23 August, and mortgage providers are offering an additional 3-month repayment holiday (on top of the initial 3-month holiday announced in March). Furthermore, welfare payments, such as Universal Credit and the Working Tax Credit basic element, have been temporarily boosted by almost £8 billion.
I have been lobbying on behalf of local small company directors and I am pleased that the Treasury Committee has published a report on the UK Government’s coronavirus support packages, following an inquiry into the economic impact of coronavirus. The report expresses concerns about support for different groups of people, including:
• Those newly in employment or newly self-employed • Those self-employed with annual trading profits in excess of £50,000 • Directors of limited companies • Freelancers and those on short-term contracts
The report says the Government needs to do something for these people if it is to completely fulfil its promise of protecting incomes and jobs, and sets out a number of actions it wants the Government to take to support the above groups. The Government has two months to respond to the Committee’s report.
Coronavirus is the most vicious threat this country has faced in many of our lifetimes. However, I am confident that the measures put in place by the Government will ensure the economy can bounce-back as lockdown restrictions begin to be eased.
Thank you again for taking the time to contact me.
Sally-Ann Hart MP