Businesses across the Harrogate district are eagerly awaiting details of the support on offer to them in the Chancellor’s Budget, to be announced later today.

An extension to the furlough scheme, continued business rates relief and moves to support sole traders are high on the list of hopes for local business leaders.

Mike Patterson, head of employment at law firm Berwins, said support for continuing employment was vital, as well as more support being offered to self-employed people. He said:

“The furlough scheme has been a major financial lifeline for many businesses, especially those forced to close during this lockdown, and for it to continue for another few months would be a massive boost in helping to save jobs and hopefully minimise redundancies.

“We’re also expecting the Chancellor to announce a new wave of grants for the self-employed. Although this scheme could either be scrapped or scaled back from May when lockdown restrictions are expected to start being lifted and self-run businesses could reopen.

“There are then the sole traders and company directors we act for who have had no income support from the government at all. We’re aware that the Chancellor is under pressure to introduce a support scheme for those in this category and I hope to see support for those who have fallen through the gaps of previous support – up to three million people.”

Neil Addley, left, and Mike Patterson

Neil Addley, who runs automotive data specialist firm JudgeService, is expecting an increase in corporation tax, as well as sector-specific support. For JudgeService’s clients, keeping fuel duty and vehicle tax static would help, along with measures to support the infrastructure for electric vehicles, both for business and personal use.

Mr Addley, who launched new public survey platform YourPoll in autumn 2020, said rates reductions and a short-term cut in VAT would help the high street. However, he said he felt positive about the prospects for his businesses and the local economy over the coming months:

“Demand for vehicles and for reviews is likely to rise as we emerge from lockdown. Hospitality will reopen. People have been cooped up for the best part of a year and will be happy to splash the cash.”

His views were echoed by Marc Squires and Kevin Masheder of SignHub, who work with many hospitality clients. Marc said:

“It would be good to see the possibility of support extended as things are still up and down and it might be a while until businesses can return to normal later in the year.

“We work with a lot of local retail and hospitality businesses so, if the government can help get them going again with support and schemes to help them once they are back open, this will have a positive knock-on effect to other businesses that rely on working with them too, which hopefully will boost the local and national economy.”

For the property sector, the biggest question is whether the stamp duty holiday will be continued. Tim Waring, head of residential at estate agent Lister Haigh, said:

“Some form of tapering would be logical as a possible three-month extension would merely be deferring the ‘cliff edge’. This is not the answer to achieve market stability.

“The property market thrives on confidence and at this time, people want more than anything to hear good news. Economic uncertainties, including Brexit which seems to have dropped out of the headlines, will not produce a thriving housing market.”

Mr Waring said he also wants to see measures brought in locally to ensure town centres are able to reopen, even if some businesses do not survive. He called on Harrogate Borough and North Yorkshire County councils to work together with local businesses to bring people back to the high street, such as through lower parking charges.

Marc Squires, left, and Teresa Bowe

Looking across all sectors, Teresa Bowe, founder of CCF Accountancy, said the government had to balance the need to maintain the economy and employment against the huge sums spent over the last year.

“I’m not expecting income tax rates to change but maybe thresholds. The government has a tricky job of clawing back the money used to support business throughout this time but they still need to balance the books.

“I expect indirect taxes to be targeted such as capital gains tax and I wouldn’t be surprised if they reduced business disposal relief. There has been talk of aligning self employed taxes to employed and they have already got closer in recent budgets, but I suspect this gap will be narrowed further.

“I hope that they keep the employers rates and allowances in place and I also hope that they do not increase the rate of tax on dividends.”

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Meanwhile, authorities across North Yorkshire are hoping the Budget will include announcements about investment in transport infrastructure.

Invest East Coast Rail has set out a raft of benefits, which it says is worth £11 billion to the economy, from improving the East Coast Main Line. The group has called for measures to encourage people to use the route more as lockdown is eased, saying confidence in its reliability is vital after 17 major incidents in 2018 cost the economy £46 million.

North Yorkshire County Councillor Don Mackenzie, executive member for access, who represents the authority on Invest East Coast Rail, said:

“The East Coast Mainline provides an essential transport link for North Yorkshire residents and businesses and the rail line certainly merits further investment, particularly to address capacity constraints.”

Self-employed businesses in the Harrogate district have expressed fears for their future ahead of a second national lockdown.

Two local business owners told the Stray Ferret they had just started to see work return after the first lockdown only to be told that the country will shutdown again on Thursday.

Hannah Ruddy, whose business Musicality Kids provides music classes for children in Harrogate, said she spent £1,500 on making her classes covid-secure only to now see her work cancelled.

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Ms Ruddy added she and many other self-employed people had received no support since the start of the pandemic.

She was among those who were denied a discretionary grant of up to £10,000 in September because she did not have business premises.

Now she is concerned about the impact of another lockdown:

“I’m worried because I do not know where the money is going to come from and if I’m going to have to borrow again.

“I’m concerned about the communication and clarity about how long this is going to go on for.

“But, most of all, I’m angry at the lack of support for a large proportion of the self employed.”

‘No idea if we will survive’

Jennie Eyres, who runs a teacher training business in Ripon, has also received no financial support.

Besides her teaching business, Ms Eyres also runs a magazine that publicises activities for children.

Although she has had some work from schools, her businesses face uncertainty as lockdown looms.

She said:

“I still do not get any support and one business is severely hampered because the companies I work with are in the leisure and entertainment industries.”

Ms Eyres said it was the worry of “not knowing from one week to next” where work was going to come from which affected her the most.

She added she was fortunate her savings and her husband’s income had enabled her family to stay afloat during the pandemic.

When asked if she felt her businesses could survive a four-week lockdown, Jenny said:

“If it does go down, then we will have to tighten our belts and do something else. But I do not know, I literally have no idea.”

Furlough extension

The government announced an extension to the furlough scheme as part of the Prime Minister’s announcement on Saturday evening.

It will see the scheme extended to December and pay 80% of employee salaries up to £2,500 a month.

Yesterday, Rishi Sunak, Chancellor of the Exchequer, announced that the self-employed would be able to claim state aid of up to 80% of profits during the second lockdown.

Harrogate driving instructors are worried about the health risks of returning to work after struggling financially during lockdown.

Tam Gallagher, chairman of the Harrogate Association of Approved Driving Instructors (HAADI), said that instructors have been told to expect to go back to work on July 6. That’s alongside other professions that can’t work with the two-metre social distancing rule, such as hairdressers. But they are aware of the ongoing risks involved with working in an enclosed space.

He said:

“Some instructors who have underlying health issues are fearful of going back. They are going to go back to work with the hope that they don’t catch anything, but if they don’t work then they don’t make money.”

A handful of instructors of Harrogate have been teaching key workers how to drive during the lockdown but most have had to cancel or postpone lessons.

Mr Gallagher estimated that each instructor will miss out on £15,000 to £20,000 this year, even after the government’s self-employment grant of £6,000 is paid out.

All instructors in Harrogate are self-employed but some are attached to franchises, such as Bill Plant, which provides instructors with pupils and a car.

However, some instructors didn’t qualify for the grant because last year they were employed and only recently qualified recently to be an instructor.

Mr Gallagher said one instructor in the town has had to take drastic measures to balance the books.

He said:

“I know one who said he had to sell his caravan in Harrogate. He can’t afford to pay his rent so had to sell the caravan to offset the losses. He doesn’t get anything.”

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On Monday, the government issued guidance on driving tests which ended three months of uncertainty for HAADI’s 28 driving instructors. This included how instructors can protect themselves and their students with PPE.

Mr Gallagher said:

“It was a long time coming. We just didn’t know what was happening. The government wouldn’t even say all tests were cancelled. We were sitting and waiting. They didn’t tell us soon enough.”

Access to support promised by the government is proving difficult for residents in the Harrogate district as people across the country attempt to get advice. 

From business rates relief to mortgage holidays, phone lines for government organisations and financial providers have been jammed by people trying to speak to someone about how they can access the promised support. 

And in some cases, even when they finally get through, people are finding the help is not available. 

Kate Curtis, a self-employed inventory clerk in Harrogate, spent seven hours on the phone to Santander only to be told she was not eligible for a mortgage holiday because she had money in her current and business accounts. 

She said: “I told them that money was to pay my tax bill, but they wanted to see last year’s tax bill to prove how much it would be. 

“I’m fortunate that I’ve earned more this year because I’ve been really busy so my tax bill will be much higher. They want to see this year’s accounts, which I can’t do until April, and I’ve just had an email from my accountant saying she’s unwell and having to self-isolate.” 

What concerns Kate is that the announcements from the government seem to be open to interpretation, so there is no consistency. Other people have reported that getting a mortgage holiday from their provider has been more straightforward, with few or no checks on their finances. 

Business as usual

That inconsistency is also affecting Kate’s work with lettings and estate agents, checking rental properties after tenancies end. There has been no clear instruction to property firms to stop working, so many of them are continuing to arrange viewings – albeit some online – and request her services. 

“There’s pressure on from a couple of my clients to still carry out some of the appointments,” she said. “I’ve said I’ve got a moral and social responsibility and I’m not going to work. 

“Even if the property is empty, I’m often asked to go to blocks of flats with communal areas – one yesterday was a retirement block. They’re not fulfilling their duty of care to people like me or to their staff.” 

For Kate, who is now home-schooling two children, the only solution is for the government to be much more stringent in the restrictions, so they are not open to interpretation by businesses, whether that is employers or banks. 

Meanwhile, she is anxiously waiting to hear what support will be on offer for the self-employed, with an announcement expected imminently from the Chancellor. However, the rapid growth of her business in the last year may again leave her with little support if long-term earnings have to be proved. 

With her pilot husband unsure whether he will be paid for the coming months, the family is in a precarious position. 

“We went through redundancy five years ago,” she said. “It’s only in the last six or nine months we have got back on our feet and cleared the debt and started to be able to put some money aside again.”