Manufacturers back Chancellor's Covid-19 support package
Adam Cunningham, Chairman of MAN and CEO of Muller Holdings, gives his reaction to the Chancellor’s business support measures in response to Covid-19.
“There will be many extremely relieved business owners and employees tonight following Rishi Sunak’s announcement.
My initial reaction is that this is exactly what is required to ensure businesses can retain their most valuable asset…their workforce, covering the next three months initially, with the possibility of extending the support if required.
80% payment (up to £2500) should ensure the vast majority of employees can continue to pay their essential bills and feed their families, two crucial elements of everyday life. I’m also pleasantly surprised to see that this has been backdated to March 1st, covering people that may have already been laid off.
We await further guidance and information to be published, so, as employers, we can understand the detail in full, but it does sound comprehensive, including covering employees on zero-hour contracts.
Like all Government support, speed will be of the essence and the money will need to find its way to the right people at the right time.
Increasing the business interruption loan interest-free period to 12 months and postponing VAT payments to the end of June will give manufacturers some flexibility and breathing space to use their cash where it is needed.
Support for the lower paid and those on universal credit should also be applauded, as the Chancellor has done an excellent job in ensuring those in need will be protected during this extremely difficult period.
In my opinion, the Government has done what it needed to do and, as manufacturers, we will do our bit, especially in seeking innovative ways where we can support the national bid for more ventilators.“
Adam Cunningham, Chairman of the Manufacturing Assembly Network and CEO of Muller Holdings