Before, during and after?

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As the Chancellor stands up today to announce measures aimed at securing the nation’s economic recovery from the Coronavirus crisis, we’ve published an in depth look at what the official statistics say about the North East and the effects of the crisis.

This report, Before, During and After? – the North East’s economic outlook, highlights that this national crisis, which has had had largely national response to date, is being felt differently in different parts of the country.

In the North East, nearly three quarters (72.4%) of businesses have seen a fall in turnover as a result of the crisis, compared to 64.8% nationally.

Nearly three in every ten jobs in the region (28.08%) are currently being supported by either the Coronavirus Job Retention Scheme or the Self-Employment Income Support Scheme.

The underlying weaknesses in the region’s economy have been brought into focus by this crisis, and so the response must reflect that, with substantial and sustained investment to narrow the gaps between the North East and the UK on measures like unemployment, growth and pay.

The North East a region of tremendous promise hampered by historic underinvestment, creaking infrastructure and deep socio-economic inequality.

The Chamber is a constant advocate on behalf of North East England and its business community, but it has never been more important to address these underlying issues and make genuine progress towards ‘levelling-up’ the economy and tackling the North-South divide.

Doing this right starts with taking an honest look at the current picture and highlighting where process needs to be made to allow the region to not only weather the storm of Coronavirus but be stronger and more resilient for decades to come.

To read the entire report, detailing the economic picture before the crisis, the figures related to the response, and what our Economic Survey suggests is coming next, click here.

Global Chambers’ views on Coronavirus

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How has the rest of the world responded to the Coronavirus? This piece collects the experiences and stories from Chambers across the world for member knowledge.

The Outbreak

Six months ago, Coronavrius broke out in Wuhan, China, and has had ranging impacts across the world. As weird as it is to write in 2020, lock downs have become a standard but vital feature in the global society.

The virus was first seen as a national crisis for East Asian governments and businesses, they did not have the benefit of learning from others, they were the pioneers of the response. Lockdowns were new and mitigating measures for domestic business, however they could still rely on the rest of the world for trade and to keep the economy ticking. When it then broke out globally in early 2020, it acted as a second economic hit to the Asian markets.

Acting early to trigger a lockdown on non-essential travel and implementing working from home strategies has also become usual practice. Greece for example has one of the lowest counts and death rates of the virus due to its quick lockdown, a harsh, considering its recovery from its decade of debt (reaching peak GDP growth of 3% since the crash), but life saving measure.

Lockdowns have had some adverse effects. In America, the Tampa Bay Chamber tells us the “Safer at Home” Ordinance encouraged workers in affected areas like New York or LA to return to their home states like Florida, further spreading the virus and pressing Governors to enact new quarantine measures and screening support for airports.

Global Trade Alert notes that there have been 310 new harmful trade interventions (state policies that harm trade), staggering considering there was 384 in total for 2019.

It became apparent the key was tracking and chasing the virus. In Hong Kong and South Korea, the development of mobile apps was used to trace and isolate the virus. Allowing users to log their information, activity and how they were feeling. If they showed symptoms, they would be put in touch with a health professional and provide a map of that patients contact.

This in turn would allow family, friends and co-workers to isolate for a week, further containing the virus. It speaks volumes that in Hong Kong, a small area with 8m people, the total cases don’t even number a thousand, with only four casualties. In Germany, Europe’s biggest “tester”, cases are plummeting and are now planning to ease their lockdown restrictions over the coming weeks.

The Response

The main response has been focused on reactionary and comprehensive support packages and a moving of business on to digital and online platforms.

British Chambers have linked up with other national partners to better campaign their Government. In Slovakia they have formed a “Business Circle” to identify and lobby on COVID issues, finding members willing to further fund it to increase its capability. Meanwhile in Ghana, they found the Government economic plans lacking, and the Chamber led a business survey to highlight the strain of business. They are now a key stakeholder and consultant in the country’s economic response.

As part of the Chamber network, regional Chambers are having daily conversations with the British Chamber to relay on the ground feedback which is then relayed in BCC’s consultations with Government ministers and decision makers.

In return clear, precise and committed response is vital in helping business navigate. In America, Chambers reported confusion about a hastily and hefty 800-page bill passed, to be introduced three days later. Neither banks nor business knew how to administer or access the funds, and on its debut weekend, the Federal System crashed 2-3 times.

Meanwhile, Spanish and Indian Chambers reported the dangers of mixed messaging. In Bilbao, members were getting so much information from local, regional and national governments or organisations that it was becoming indigestible for business. In India, there was an issue of fake news, and the Chamber was tasked with making sure only authentic news of the virus and government measures were reaching business, and not being conned into making the wrong decisions.

Chambers across the world have tried to make sure that business get the right information, but that the real experience of business is being relayed to Government to introduce new, or better, measures to support the economic response.

The Outlook

The measures imposed have had serious impacts on the global economy, the fast-growing Chinese have halved their predictions from 6 to 3% growth, while in South Korea around 52% of business are forecasting 6-12-month disruption.

The UK predicts the biggest on quarter decline since 2008, with the OBR has predicting a 35% downturn in GDP. This is then countered with a sharp rise once the UK “re-opens”, but that depends hugely on the length of the lockdown and transitional measures to return. Either way, there are tough months ahead, and the Chambers are campaigning Government to make navigating as smooth as possible.

Only in the early stages, India has launched a national lockdown of “non-essential” work, almost halving growth predictions from 5.5% to 3%. However, already suffering a faltering economy with a widening trade deficit, India is taking a longer-term approach, mapping its recovery with plans to accelerate infrastructure development, incentivise exporters, and phase workers in.

Despite these gloomy forecasts, there is room for optimism The Hong Kong Chamber recalls the rapid bounce back from the SARS outbreak, which was aided by the rising growth of neighbours China. While China’s growth has slowed since then (it was around 12% growth in 2011), it’s size and role in the global economy is much greater making it a more demanding consumer.

Once the recovery starts, China’s demand for their neighbour’s materials and supplies will increase, fuelling their economies as a result. In turn this may cause a further global shift towards Chinese markets (which may further fuel US-China trade war) but will drag the neighbourhood economies up and out of isolation, and hopefully breathe life into Asian markets.

Not to sound too dramatic, but after a war there are post-war booms of people going back to work, spending money and generally celebrating life. As people isolate and remain home they build up their purchasing power, hopefully meaning that once this ends, demand for services and goods will rapidly rise.

However, this boom relied on the powerful trade ally of America to supply and finance regeneration projects. America, already suffering from the result of the trade war, has posted contracting growth from 2.2% to 2%, but some estimates say it could shrink as low as 1.3% with an annual 8.3% drop in GDP.

In the age of Trump and “America First” it is unlikely America will adopt such an international outlook in this crisis, and instead the European gauntlet will lie at the feet of the European Union. A co-ordinated recovery package and support for member states will be crucial in keeping the Eurozone floating (looking at you Greece and Italy).

The outbreak has caught out the EU, because its budget for 2020 has already been rolled out. It now needs to bring forth future budgeted money, while still reconciling the loss of UK contributions, to aid members during the crisis. It has also lifted economic rules, like State Aid, so states can keep ticking.

This has sparked debates within the Union on what happens next. Some states, namely Italy, feel they are taking the brunt of the virus, while other members took had time to base their response based on their experience. Essentially, they want the cost and responsibility spread across the Union while some better placed states, namely Germany, do not. The Irish Chamber tell us this is causing friction and stalling for those in need, and while it still goes strong, there are some concerned faces around the Eurozone table…

But any recovery, no matter how grand, must recognise the individual and their safety. Getting people back to work and helping business regain confidence will be crucial. India are already planning a “return to work” scheme, helping Indians get new jobs, along with major federal projects, in Hong Kong companies are returning to work “in teams” (having reduced, alternating, numbers in the office, to keep spacing).

As countries start to become restless with the lockdown and seeking a way out, we must not lose focus, and encourage a “second wave” of the virus by easing too early or liberally. Reports from China indicate that they are once again seeing a spread of the virus…

My final thoughts

It’s important to take some lessons from isolation too. As I have sat in these four walls of my flat, I have become ever more connected to global Chambers and business and reminded me of the importance that we work together, not closing the door.

It’s easy to lay blame, scapegoat and turn our back in times of crisis, but this would hinder ours, and partners, recovery. Coming out of this scenario, everyone will be at ground zero, some states or business will try strategies that will work, some that will fail. Working together we can learn, adapt and rebuild, isolating ourselves further would only cut us off from new opportunities in existing or new markets.

There is light at the end of this very dark tunnel, but we must continue to work together to reach it.

This piece was done with the help of Chambers across the Global Business Network. With over 100, the Chamber can link you with contacts across the world. See the brochure here, and get in touch with [email protected] to find out more: https://www.flipsnack.com/A7BBBADEFB5/global-business-network-fd132ch7e.html

The Planning System – Business as (un)usual

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How is the planning system adapting to the current circumstances? Dominic Crowley of Lichfields explains and introduces their Economic Recovery Framework to help regions get back on their feet.

As we all get used to doing business in these unusual times, the day-to-day reality of the planning process and the way development is brought forward have changed markedly – and with the Government’s decision to extend the ongoing lockdown, there is limited prospect of a return to normality any time soon.

Since the announcement of the lockdown, the national focus for the planning system has been to ensure business continues as usual, with planning applications continuing to be validated, processed and determined by the relevant Local Planning Authority (LPA). There has been a particular emphasis on ensuring the decision-making element of the process is not unduly delayed given its important role in supporting the function of the economy. This has been highlighted at the highest levels of Government decision-making, including through the most recent update from Steve Quartermain (Chief Planner at the Ministry of Housing, Communities and Local Government (MHCLG)). In his update, Mr Quartermain highlighted the importance of LPAs continuing to “provide the best service possible in these stretching times” noting that they should “prioritise decision-making to ensure the planning system continues to function, especially where this will support the local economy.” [1]

The key messages are therefore clear; work within the lockdown restrictions but keep the planning system moving, retain transparency in the decision-making process and ensure that a sufficient supply of flexible and high-quality planning permissions is in place to assist in addressing the economic fallout of the pandemic.

To allow business to continue as usual, one of the key measures introduced by the Government is the Coronavirus Act 2020. The Act gained royal assent on the 25th March 2020 and provides temporary legislation to help the country deal with the unprecedented demands brought about by the coronavirus outbreak. It contains a wide range of provisions including matters relating to food supply, emergency volunteers and NHS/local authority care and support. In terms of matters directly relevant the planning system, the Coronavirus Act and subsequent Regulations make provision for remote decision-making by Planning Committees. This will assist in overcoming the previous barrier set by legislation which required Councillors to be physically present at Planning Committee to determine planning applications.

LPAs are also being challenged to consider how they can continue to meet their publicity and consultation requirements on planning applications whilst working within the lockdown parameters.

The temporary legislation and measures in place seek to ensure planning applications can be validated, processed and determined without undue delay – and should effectively mean business as usual. Questions remain, however, as to how each LPA is responding to the ongoing crisis and what specific measures have been (or are being) put into practice at a local level to ensure that the planning system can continue to function.

As part of our ongoing response to the COVID-19 crisis we have been liaising with LPAs across the North East region to understand how they are implementing the new powers provided by the legislation. In summary, the majority of Councils in the North East are considering implementation of ‘Virtual’ Planning Committees to ensure key decisions can continue to be made. Some authorities, including North Tyneside, have also extended delegated powers to allow the Head of Planning to determine planning applications usually decided by planning committee. Almost all North East authorities also have measures in place to ensure that requirements to publicise and consult on planning applications will not unduly delay determination or result in a backlog once the lockdown ends [as of 20/4/20].

The position is rapidly changing, however, and it is important to remain live to the changing circumstances and associated opportunities and constraints.To assist with this, Lichfields has prepared a range of practical advice on how to maintain momentum in the planning system. This includes a live map for LPA COVID-19 planning responses across the country, an Economic Recovery Framework (designed to support local areas in developing their economic and policy response to COVID-19), guidance on consultation and engagement during lockdown and advice on Local Plan site promotion and Site Finding/Appraisals. Further information on these resources can be found here and our live LPA COVID-19 planning response tracker can be found here.

We remain in uncertain and challenging times, and the economic implications of the COVID-19 crisis are yet to be fully understood however, mechanisms are now in place to allow the planning system to continue to operate as normal.While challenges remain, and will continue to emerge, these mechanisms should be helpful to all businesses with development aspirations.

Please get in touch with Lichfields directly if you have any queries in relation to the current planning arrangements.

This blog has been prepared by Dominic Crowley, a Senior Planner at Lichfields’ Newcastle Office.

Get your code on

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In this blog post, Amber Burney looks at ways you can improve your digital skills at home to benefit both yourself and your business.

There’s always been someone there in the office who’s a little more tech savvy than everyone else, who everyone likes to use as their on-hand IT technician. Maybe you *could* learn to do that thing they keep doing for you, but you’ve got so much more work to do it doesn’t feel like much of a priority. I guess it can wait. I’m bound to pick it up eventually. I’ll just get this project finished before requesting that training.

Queue COVID-19.

Not only are you now trying to work during a stressful, world-altering event, but you’re doing it at home, with your pets, your children, your partners, the ever-looming fridge door which you’ve opened for no reason at all for the 17th time by 10am…

And you’re on your own in the world of utilising your technology.

So, what can you do to improve your digital skills? From understanding the innerworkings of your software to excelling at use of social media platforms, here are some ways you can level-up your digital abilities to help both you and your business.

Social Media and Digital Marketing

Gone are the days when social media was keeping up with friends and family, now it’s used in applying for jobs, entire marketing strategies are based around it and it’s the perfect way to keep in touch with your audience and provide amazing customer service.

Whether you want to sharpen your social media skills for personal or business use, there’s a huge benefit. It’s a highly sought-after skill for employers, like all digital skills, and with so many platforms available it’s easy to engage with all of your audiences or find the right one for you.

There’s a plethora of information online for learning more about each of the platforms and further information on digital marketing, with some good starting points below.

  • BT Digital Skills for Tomorrow courses on Promoting your Business
  • Mediaworks digital marketing webinars and online content
  • Digital Drive Durham webinars (Linkedin, Twitter, Hootsuite, WordPress, Facebook)

Coding and Cyber Security

Even if you aren’t planning on coding the next Microsoft Word or hit phone app, coding is a perfect way to understand digital processes from the ground up and will help you with all of your other digital skills.

The same goes for cyber security – you may not be an IT professional but cyber crime can affect anyone and everyone, and we can all do our bit to protect ourselves and our businesses. Unfortunately, due to the current crisis, we’re seeing a higher number of cyber attacks on businesses and individuals, including email scams to unsuspecting and worried users.

Microsoft and Adobe software skills

The Microsoft Office package is so well used across the world that it might not even have crossed your mind when you think about improving your digital skills, but Microsoft are constantly updating their software and adding new packages, all which work together seamlessly. Understanding the basics of all of the software (Word, Excel, Outlook etc) and how they can all work together can see your work efficiency skyrocket, tasks more easily organised and communications not getting lost or missed.

Microsoft excel may feel like something you can use without issue, but how much of what it can do are you actually using? Do you know your own limitations of the software you probably use almost every day?

The same goes for Adobe creative packages; mastering the art of Photoshop or Illustrator to create your own online graphics for your business, Dreamweaver to throw some ideas together for designing your own website… the creative possibilities are endless with Adobe.

  • Adobe has a load of support available on their website on how to use the functions of all of their software, for example Photoshop here.
  • Microsoft have a digital literacy course available on their website, giving good overviews of all of their software programs.

In the age of the internet, we’re spoiled for choice with tutorials, webinars, ebooks and a million other ways of learning new skills. With some of these starting points you might find your online jam and take something further, or at the very least learn how to easily use all of the technology available to you for work. The digital future talked about is here, and these skills are for today.

How to facilitate strong cash flow through government incentives

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Cashflow is the most pressing current issue for many businesses. In this blog, Leyton look at ways to use government schemes and provisions – including R&D Tax Credits – to ease the pressure.

Across the country, companies of all sizes face a new reality as they try to operate under the new conditions imposed by Covid-19. For small organisations in particular, many of the fundamental operations of running a business, whilst more difficult, have become even more important.

Cash flow is without doubt the primary concern for many businesses during this period. As companies repurpose to support the fight against the virus, furlough staff, reduce service or move their operations online, normal models of practice are being thrown out of the window.

For those who are not classed as key workers, the only way to keep running is for work to take place from home – an impossible task in many industries. However, even beyond this, the crisis is having a major impact on day-to-day processes and core business models.

According to banking platform Tide, the revenues of SMEs are set to decline by nearly 60% in April and the impact is projected to be particularly damaging for those in the hospitality and leisure sector.

As businesses face tough choices over how to keep staff employed and keep the business afloat at all, cash flow becomes a real challenge. Supply chains are broken and demand for services or products is reduced or non-existent. Paying staff and suppliers on time and receiving payment may be difficult for some even at the best of times but in this environment, it’s proving to be a sink or swim situation.

However, it is not all doom and gloom.

There are several ways in which companies can weather this storm. The Government has created support packages and initiatives which are incomparable to anything this generation has seen before. SMEs should seize what they can and need. Similarly, many advisors are providing free or reduced cost services to help SMEs access the information they need to survive the storm, particularly if they are repurposing their operations to support the fight against COVID-19.

The current schemes include:

Coronavirus Business Interruption Loan Scheme (CBILS) – this scheme has been set up to support businesses which are seeing cashflow disrupted or losing revenue due to COVID-19. Through approved lenders, businesses can borrow up to £5 million. Whilst the borrower is responsible for the debt, the Government will guarantee the first 12 months of interest and any lender-levied charges.

Small Business Grant Fund – The Small Business Grant Fund applies to all businesses who receive either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR). This means that they will be eligible for a one-off grant payment of £10,000 to help with business costs.

Coronavirus Job Retention Scheme – This scheme enables employers whose businesses are severely impacted by COVID-19 to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.

Deferral of VAT payments – All VAT payments are postponed for the next three months until the end of June 2020 during the coronavirus pandemic. This will benefit around 2 million VAT payers and delay £30 billion in taxes, since it includes pre-crisis trading. The VAT is then due at the end of the 2020/21 financial year. VAT refunds and reclaims will still be made by HMRC as normal.

An existing incentive which can enormously help SMEs which are repurposing their business, to adapting their operating model or supply chain to face the new reality, is the R&D tax relief scheme. Many companies are unconsciously innovating to survive and thrive and as a consequence, they should seek the relief which the Government provides on R&D. Additionally, for companies that are repurposing their operations to fight COVID-19, Leyton is providing our R&D tax service for free projects related to COVID-19. We hope this offer will aid the facilitation of strong cash flow and recovery of costs where applicable to reinvest into these repurposing businesses.

The Government and businesses across the country are working relentlessly to support communities, our health service and individuals through this pandemic. As SMEs look to support their business and people through this time, they MUST take advantage of the full range of the schemes and incentives that are available to them.

Contact Leyton to find out more about how they can support your business at [email protected] or 02039498230

COVID-19

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A Collection of Frequently Asked Questions from business about how COVID-19 is impacting global trade and the Chamber’s Global Services.

For a summary of all available support, from Government & members, please see here: https://www.neechamber.co.uk/covid-19

From the British Chambers of Commerce

Will airports and seaports remain open to ship goods?

UK seaports remain open. Operators state their intention to stay operational through the crisis subject, to evolving government guidance. The UK government updated its official guidance for seaports on COVID-19 on 19 March. This focuses on procedures for reporting and processing of cases in marine settings.

The global shipping industry reports disruption to freight movements, particularly to vessels inbound from Asia. This follows from factory shutdowns and other disruptions to production and logistics.

Airports worldwide remain open to freight movements, subject to official guidance. But the disruption to passenger flights and personal travel has affected air freight. Passenger planes carry just over half of the world’s air freight by weight: the reduction in passenger flights has forced up cargo rates for dedicated freight planes on some routes.

Will my business be able to send and receive goods internationally? And what happens to goods enroute to countries with closed borders?

Some countries are restricting export of goods judged to be essential in the coronavirus crisis. The UK has banned certain medicines from parallel export (where goods intended for UK patients are sold overseas).

The Department for International Trade has a dedicated Coronavirus web resource for companies that trade internationally. This includes a commitment to support importers find alternative overseas suppliers where supply chains are interrupted.

Will employees be able to travel in the UK or internationally?

Business should plan for an indefinite period of heavy restrictions to international travel across all regions of the globe. Official FCO guidance (correct as of 23/3/20):

‘As countries respond to the COVID-19 pandemic, including travel and border restrictions, the FCO advises British nationals against all but essential international travel. Any country or area may restrict travel without notice.’

For travel within the UK, businesses should check in with official guidance and news alerts on social distancing and self-isolation rules. Government advice on movement is evolving by the day.

From the North East England Chamber of Commerce

Is there any specific support for globally trading business?

The UK has announced a £330bn package to help business affected by the outbreak and to protect jobs. There are a wide range of support mechanisms summarised on our Chamber hub here.

Business are still able to benefit from UK Export Finance, which may help ease some payment pressure, offer insurance under late payment or access new markets. The Department for International Trade has a raft of guidance here.

Does import VAT come under the Government’s VAT deferment scheme?

The UK Government announced in the budget that at the end of the Brexit transition period (1st January 2021), they would introduce a postponed accounting mechanism for Import VAT of up to three months.

HMRC has confirmed that business will be allowed to apply for an extension of Import VAT & Duty from April 15th. HMRC will ask how COVID-19 has impacted your payment, and will decide on the length of extension on a case by case basis. Account holders should contact 03000 594243 or email [email protected].

Duty deferment account holders who are experiencing severe financial difficulty can contact HMRC for approval to enter into an extended period to make full or partial payment, without having their guarantee called upon or their deferment account suspended, the outstanding payment will not affect their duty deferment limit so they will not need to increase their guarantee to cover. You are not required to have a Duty Deferment Account to benefit.

What will COVID mean for the movement of goods?

While there are no changes at the UK frontier, there will likely be a reduction in capacity, as flights and staff are reduced, and an increase in cost. Reviewing strategies and preparing contingencies, such as storing more key stock, may alleviate supply pressures.

Goods arriving from outside the EU that are part of the UK’s effort to combat COVID-19 will no longer have duty or VAT charged. Government commodity code list and guidance here.

The Chamber has adopted measures to allow the continued processing of documents and certifications, including Letters of Credit, and can be done so remotely via our online platforms. Any business seeking clarification on any export issues or question is welcome to contact [email protected].

My business relies on essential imports to operate, is Government doing anything to prioritise supply?

Some products, especially raw materials, cannot be produced in the UK, and so must be imported for business. As mentioned above, there are no changes at the border, but time and cost may increase.

Constant communication with global suppliers and staying updated on their national or regional guidance is important, especially as further lockdown measures are taken.
The BCC is lobbying government to co-ordinate with global partners to ensure crucial supply chains remain operational.

Government acknowledges a propan-2-ol shortage, and HMRC has issued guidance for sanitiser producers on using alcohol substitutes here.

How will COVID impact Brexit negotiations?

The outbreak has severely restricted the ability, on both sides of the Channel, to deal with anything other than the virus. In addition, the Prime Minister and lead EU negotiators have been quarantined for testing positive for COVID-19, adding further restrictions to negotiations.

The progress of the negotiations has therefore faltered significantly, and while the talks are being closely monitored, the deadline for an extension to the transition phase is the 30th June 2020.

“This will only exist in the moment…”

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Sage Gateshead’s managing director Abigail Pogson explains how the venue is adapting to the Coronavirus pandemic.

These were the last words spoken in Sage One before we closed to the public for the foreseeable future, in response to government advice and for the safety of our audiences, our team and our musicians. The words were spoken by the wonderful Venezuelan pianist Gabriela Montero, who always finishes her concerts with an improvisation. Improvisation is the purest form of ‘only existing in this moment’ – not written down, not thought about in advance, always in response to a musical idea which she asks an audience member to suggest. She gave this last concert on the back of a rollercoaster 48 hours in which she thought she had Coronavirus, self-isolated, then tested negative, missing her first concert scheduled at Sage Gateshead, then played her second with us as her country’s borders were closing and the number of flights to get her back home to Spain was decreasing by the minute. In the end this last concert (which we all knew in our hearts it was) was exceptional and very moving.

Indeed the whole sequence of performances last week in Sage One – widely accepted as the best concert hall in Europe – reminded me of the power of live performance and the power of different music for different contexts. As closure steadily became inevitable, the diversity of Sage Gateshead’s musical and audience reach played out in three days. On Wednesday Sage Gateshead filled with the incredible sound of 900 Year 4 pupils from 30 Gateshead and South Tyneside schools, lifting the roof of Sage One with their voices in front of an audience of parents and friends – an audience which had come to watch the culmination of several months of work by them in school. On Thursday The Lightning Seeds opened their six date UK tour at Sage Gateshead and as everyone got on their feet and sang and danced their hearts away to Football’s Coming Home, three decades faded away and we were in a totally different time. On Friday Royal Northern Sinfonia performed music written across a whole century, composed by a Norwegian and two Russians, with a conductor from France and soloist from Germany. It’s hard to imagine three more different concerts, three more different audiences, three more different atmospheres.

‘This only exists in the moment’ applies to any live performance – these words capture what is so compelling and unique about live performance. A group of people who don’t know each other, select to come together to form a community – an audience – for a short period of time. Only they will have this experience, and when it’s over, it’s gone. Time and again people tell me it’s not just about the magic of a great musician at their height which brings them to gigs, it’s also that it’s shared with other people and the electric atmosphere which this creates. Last week the Berlin Philharmonic Orchestra proved this by streaming a concert in an empty auditorium – brilliant music and musicians, led by the legendary Sir Simon Rattle. A fantastic thing to do, and something we will all do a lot of in coming times. But no audience, no atmosphere, no community, no immediate exchange.

So this is a curious time to run an organisation for which a core part of our purpose is to organise ‘massed gatherings’ for over 1000 people on a daily basis. We do much much more than performances -we teach young people, give classes to adults, support the next generation of musicians from the North, use music to help people who are vulnerable, work in communities across the region. We are one of the biggest cultural charities in the country. But this week it is the performances – perhaps the most visible aspect of the charity’s work – which I’ve been thinking about. And as we have closed down the building, postponing all of our concerts, classes and activity, the building feels incomplete – empty with no preparation or anticipation of an event which is just around the corner. No anticipation of an audience – of parents anticipating hearing their children, of long term fans anticipating hearing music which is the soundtrack of another part of their life, of people wanting to hear something new, to have their ears opened to a new world of sound.

As the building has fallen silent, one thing has been really clear to me – live music will be back. We are heading into a time when gigs will go online, we’ll build virtual choirs, music classes will take via Facetime. We will all live closer to home and in much smaller networks for a while. But beyond this, the live, face to face, in-person experience will be back. As our box office team are beginning the process of calling every audience member who has a ticket for a concert which won’t go ahead on the planned date, something has started to happen. Rather than a refund, people have started to donate their ticket back to the charity. Knowing the risk which the charity – like so many others – will be at through this crisis, members of our audience have opted to help us out. This will enable us to keep things secure for our musicians, our teachers, our staff and to be here at the end of this – to give world class performances, to teach people of all ages, to serve our communities, to use music to help people in their lives. We’re incredibly grateful for this generosity and that people are thinking of us.

Above all I wonder whether this is a sign of the value of live music and that unique atmosphere created by an audience coming together for a brief time to hear something which only ‘in this moment’.

Keep safe

Abigail Pogson, Managing Director, Sage Gateshead

Click here to donate to the Sage Gateshead Coronavirus Resilience Fund

Coronavirus Job Retention Scheme – the employment law perspective

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Endeavour Partnership explain what you need to know about employment law and the grants to cover 80% of salary for furloughed employees announced at the end of last week.

You will be aware that the Government announced a series of measures to assist employers and employees on Friday and in particular the Coronavirus Job Retention Scheme (“Scheme”) which will contribute to protect employees’ pay if they are not required to work as a result of business disruption caused by the coronavirus outbreak.

At the moment very little detail is available so please bear with us as we are awaiting more detailed guidance.This is expected later this week.

How does the Coronavirus Job Retention Scheme work?

1) The Scheme allows all UK employers (including PLCs, limited companies, LLPs, sole traders, etc.) to designate affected employees as “furloughed (pronounced “fur-lowed”) workers”; essentially meaning that they can be sent home to do nothing whilst still receiving most of their pay.The hope is that employers will choose to furlough its workers rather than making them redundant. The Scheme will last initially for three months from 1 March 2020, but will be extended if necessary.

2) The Scheme applies to employees only; it does not cover “workers” or self-employed people.

3) The Scheme will protect employees by enabling employers to keep them on the payroll during this uncertain period. To mitigate the costs burden on the employer, the Government will reimburse 80% of a furloughed worker’s wage costs. “Wage costs” includes not just salary but also employers’ pension and National Insurance contributions.

4) Claims for reimbursement under the Scheme may be backdated to include wage costs incurred since 1 March 2020.

5) The reimbursement of 80% of the furloughed worker’s wage costs is subject to a maximum of £2,500 per month per worker.

6) At the moment we don’t know for certain what will happen in relation to holidays, but it is likely that furloughed workers will continue to accrue paid holiday.

7) The portal through which employers can make claims to HMRC and receive reimbursement is not yet operational but it is expected to be up and running imminently.

8) An employer may choose to continue to pay a furloughed worker his full salary, funding the additional 20% itself. Alternatively, it may ask the worker to agree to a pay reduction of 20%, meaning that all the worker’s wage costs will be covered by the Scheme.

9) The employment relationship continues during any period during which the employee is furloughed; and continuous employment will continue to accrue.

10) It is important to note that a furloughed worker is not permitted to undertake any work for the employer.The Scheme does not therefore assist employers who wish to keep their employees at work but for reduced hours and/or on reduced pay.

How do you designate an employee as a furloughed worker?

1) You can insist on designating an employee as a furloughed worker only if their contract of employment has a clause which allows lay-off or short-time working.

2) If you don’t have this right in the contract, and most do not, then the employee needs to agree to be designated a furloughed worker. The employee would also need to agree to any proposed pay reduction.Given that in most cases the alternative is likely to be compulsory redundancy – and possibly the insolvency of the employer – most employees are likely to agree.

3) Every furloughed worker should sign and return a contract variation letter detailing their agreement to being furloughed, the reduction to their salary and how long the furlough period will last.

4) An employee cannot insist on being furloughed. It is the employer who will decide who is ‘designated’ as furloughed.

5) When deciding which employees are to be designated as furloughed you should apply fair and objective criteria in order to avoid potential complaints of discrimination or constructive unfair dismissal.

We expect there will be stringent measures in place to ensure businesses do not abuse the system.

As you would expect, the Scheme is brand new and some details may change before it becomes fully operational.The above advice represents our interpretation and understanding as of today (23 March 2020), but it may well go out of date very quickly.You should always check with us before taking any steps in reliance on it.

Our employment law experts are on hand if you have any questions or need further assistance. Please do not hesitate to contact the team at the Endeavour Partnership on 01642 610300 or email us at [email protected]

Further updates will follow once announced.

[Advice included in this content was up to date as of 23rd March 2020].

Budget 2020: support for those affected by coronavirus

Written by

The Chamber’s Arlen Pettitt summarises the actions taken by the Chancellor to mitigate the economic impact of Coronavirus.

Today’s Budget was a game of two halves, with the better part of the first half an hour of new Chancellor Rishi Sunak’s statement dedicated to a £12bn package of ‘temporary, timely and targeted’ measures to mitigate the worst economic impacts of Coronavirus on the UK’s economy.

Over the last few weeks, we’ve heard concerns from Chamber members around sick pay, the impact of a potential fall in demand – especially on those in retail, leisure and hospitality sectors – and whether there will be support available from government to help manage cashflow in what could be a very difficult period.

The Chancellor has addressed most of the obvious potential impacts today, while still acknowledging massive uncertainties in how the impact of the virus will play out across the economy.

The Bank of England also moved decisively this morning, cutting interest rates to 0.25% and making tens of billions extra available to banks to encourage them to loan more freely to households and SMEs.

The Chancellor’s actions included…

For individuals:

  • £5bn for the NHS to treat Coronavirus patients and maintain staff levels
  • Statutory Sick Pay from day one for those diagnosed or following Government advice and self-isolating. Sick notes will be available via NHS 111 rather than visiting a GP
  • For the self-employed, who are not eligible for SSP, quicker and easier access to Universal Credit or Contributory Employment and Support Allowance, without the usual requirement of attending a job centre
  • A £500m hardship fund given to Local Authorities to support vulnerable people – with an expectation that most of this will be in the form of Council Tax relief

For businesses:

  • New legislation will be brought forward to enable SMEs to reclaim SSP paid for absence due to Coronavirus – both for those diagnosed and those self-isolating. This will cover a period of two weeks absence per employee. No mechanism currently exists to refund employers, so government has promised to put this in place ‘over the coming months’
  • Retail, leisure and hospitality businesses will be eligible for 100% business rates relief in 2020/21 – businesses may need to apply to their local authorities to receive this discount. Local Authorities are unlikely to have received updated guidance before 20th March
  • If you are already eligible for Small Business Rate Relief, or Rural Rate Relief, you are eligible for an additional grant of £3,000 to help with ongoing business costs. This will impact around 700,000 small businesses across the country
  • A Coronavirus Business Interruption Loan Scheme run by the British Business Bank will be launched in the next few weeks, with loans of up to £1.2m available with 80% government guarantee.
  • HMRC have launched a dedicated team of call handlers as part of their ‘Time to Pay’ service, helping businesses and self-employed individuals manage their tax liabilities and receive support. If you are concerned about your ability to pay your tax as a result of Coronovirus, you can contact that team on 0800 0159 559