Businesses across the UK are concerned after Boris Johnson announced a four-week delay in the final phase of his roadmap to end the lockdown.
The delay means that the remaining social restrictions will remain in effect after June 21st, which is a setback for those who must remain closed or have their trade restricted.
The prime minister did say that a review will be conducted in two weeks and that he is "confident" the delay will be no more than four weeks.
However, he stated at a Downing Street press conference that further delays are not ruled out if the rapidly spreading Delta variant does not abate.
What restrictions will remain after the delay?
A number of restrictions that were supposed to be lifted in June will remain in place, limiting the capabilities of many businesses and, for some, prolonging their near-indefinite closure.
The following restrictions will remain in effect until July:
There are restrictions on the number of people who can mix indoors and outdoors.
Limitations on the number of people permitted to attend sporting events
Pubs, clubs, theatres, and cinemas will have less capacity.
Nightclubs must remain shut.
Enhanced vaccine accessibility
In an effort to further protect the nation, the prime minister also announced that the interval between COVID-19 jabs for those over the age of 40 in England will be eight weeks rather than twelve.
Another revelation in yesterday's announcement was that 23 and 24-year-olds can book their vaccinations beginning on June 15th, and plans are in place to provide all adults aged 18 and up with their first dose by July 19th.
What does the delay in lockdown mean for businesses?
The lockdown delay will be devastating to businesses that must remain closed or have their trade restricted, particularly the UK hospitality industry, which has already lost £3 billion in sales during the pandemic.
As many businesses struggled during the lockdown, losing cashflow and revenue, questions have arisen about what assistance will be available.
According to the Treasury, eligible businesses will continue to receive business rates relief, VAT registration, and the Recovery Loan Scheme, while the furlough scheme and self-employed support will be extended until September.
Many, however, wonder if this level of support is sufficient.
According to Claire Walker, Co-Executive Director of the British Chambers of Commerce, "the government must provide additional cash grants, at least equivalent to levels provided during the first lockdown, and postpone the tapering of government payments into the furlough scheme, which is scheduled to begin in early July."
"The government should also consider extending the trade credit reinsurance scheme beyond the end of June to avoid insurance coverage disruptions."
What does the delay in lockdown mean for accountants and their clients?
Due to the prolonged uncertainty caused by the lockdown delay, clients will now turn to their accountants for advice on how to keep their business afloat for an even longer period of time.
Accountants must continue to advise clients on:
How to Increase Cash Flow
Investigating alternative sources of income, frequently through business pivoting
What financial assistance is available.
As support for the Job Retention Scheme declines, businesses will face increased pressure, potentially leading to redundancies or closures.
As a result, advising their clients on unpopular decisions that will be required for their businesses to survive will be a critical responsibility for some accountants.
But, perhaps most importantly, in the midst of the delay and everything else going on, Best accountants in London must maintain contact with their clients and be available to them during these trying times.
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