A DV ICE
STANDING
TOGETHER
People are the priority during
our greatest challenge
In an exclusive column for Tees Business, Tees Valley mayor
Ben Houchen looks at government support available for
business during the coronavirus crisis – and says we all need to
put politics aside and make sure we’re looking after each other…
T
he coronavirus
pandemic is without
doubt the biggest
challenge the world
has faced since
the Second World
War. The rules that
govern our society and economy
have changed. The government
has called for a collective national
response and pledged to do
whatever it takes to protect people
and save lives.
In the Tees Valley we have our
part to play, both in the national
effort and in looking after local
people and businesses. This deadly
virus has made extreme social
distancing measures necessary
and the economic impact of these
is being felt. All of our companies,
small and large, will experience a
change in demand, in some cases
overnight.
Businesses – especially Tees
Valley businesses – are resilient,
but some of the obstacles they
find themselves faced with are
so unexpected and of such a
magnitude as to be completely
insurmountable without significant
help.
Many people expressed
frustration that measures
announced by the government
weren’t immediately in place. I
am extremely sympathetic to
this position, but it is better that
they get them right than launch
schemes that aren’t completely
ready.
14 | Tees Business
The chancellor, Rishi Sunak, who
as Richmond MP knows the Tees
Valley well, announced a £330bn
package to protect businesses
and jobs. This is unprecedented in
peacetime and in a way shows a
temporary switch from our normal
market economy to a command
economy – which will allow the
government to react quickly to
steady the ship.
These measures, plus those he
announced a week before in the
budget, are a formidable toolkit
to allow him to support employers
and their employees. They aren’t
magic bullets that will solve every
problem, but as a broad set of
measures they will hopefully have
the impact the nation needs.
Locally, I have repurposed my
entire organisation to help with
the coronavirus response, and
we are doing all we can to make
sure Tees Valley businesses know
where to go to get the support
they need. Over the last few days
we have been putting teams in
place to guide companies towards
the latest government advice. We
can’t claim to have all the answers
but often we know where they can
be found.
The retail, hospitality and leisure
sectors are perhaps some of the
most at risk, and have definitely
already started to feel the impact
of social isolation measures. That’s
why there will be a 12-month
business rates holiday for all firms
in these sectors, as well as grant
funding based on the rates they
pay.
All companies, regardless of
sector, that pay rates below
£15,000 will get a grant of
£10,000. Retail, hospitality and
leisure businesses paying between
£15,000 and £51,000 in rates will
get a grant of £25,000. These
grants will be administered by local
councils, who will be writing to
qualifying businesses in the coming
days.
A package of Statutory Sick
Pay relief for SMEs means the
government will cover the cost of
sick pay for up to two weeks for
any employee who has to take
time off due to coronavirus. As the
prime minister has said, nobody
should be punished for doing the
right thing.
There will also be a Coronavirus
Business Interruption Loan Scheme,
run by the British Business Bank.
This will mean the government
guarantees 80% of loans and
overdrafts for SMEs backed by
the scheme, which will be offered
at attractive rates by high street
banks. Businesses struggling with
HMRC bills should contact their
dedicated helpline on 0800 0189
559.
My data team estimates that
in the worst-case scenario up to
17,000 people in the Tees Valley
could lose their jobs as a result of
coronavirus. While many of these
job losses might be only temporary,
they could not come at a worse