Prime Minister Boris Johnson announced the new nationwide lockdown measures for England yesterday evening (4 January), following on from First Minister Nicola Sturgeon’s own Scots lockdown announcement earlier in the day.
This morning (5 January) Chancellor Rishi Sunak announced a further £4.6bn in support measures with specific relief available for retail, leisure and hospitality businesses forced to close. He also announced a £594m discretionary fund for local authorities to support businesses of all types.
BPIF chief executive Charles Jarrold said that the federation would be lobbying for additional support for printing industry firms affected by the measures.
“Over 60% of our members have reported that retail, hospitality and leisure was a significant part of their business and that’s the sector that’s being locked down and having the most direct grant support,” he said.
“I think the Job Retention Scheme may need to be extended beyond April. Businesses are at least used to furloughing staff and responding to this, but it is really tough and we need to look at what more direct support the government can give.”
Jarrold also emphasised that travelling to work in industries such as print manufacturing was still permitted within the fresh guidance.
“We need to manage this, but we need to keep the economy going as far as we can within the guidance and within the rules. Where work cannot be done from home travel to the workplace is permitted and deemed essential to keep the country operating – I think it’s really important that we get that message across,” he added.
Also today, cabinet minister Michael Gove said the restrictions would probably be necessary until "at least March".
IPIA chairman Graeme Smith said the new lockdown would “test the resilience of even the strongest in our industry” but also emphasised that opportunities still existed. “It is vital that we keep a focus on what our customers need so that we remain a vital resource as they reposition their marketing messages,” he noted.
“Although very frustrating, this period of lockdown was inevitable given the sudden and dramatic rise in the rate of infection. It will unfortunately affect many businesses in our industry in a negative way.
“The key difference to this lockdown, however, is there is a light at the end of the tunnel with two approved vaccines in the UK being rolled out providing a huge amount of reassurance to the country. Businesses will be planning for a period in or around Easter when the vast majority of the country will be vaccinated and marketing volumes will again start to grow.”
The association also said that “large numbers” of IPIA and BAPC members had been able to access government support grants “It seems most are getting around £2,500/month support, but some have received £5,000 one-off payments depending on the scheme and local authority. It's been a real lifeline for SME printers so they can keep up with rent and other static overheads,” explained general manager Brendan Perring.
The IPIA wrote to the Prime Minister before Christmas calling for means-tested grants to help print firms survive the crisis.
The Chancellor’s new package of measures does not address the issue of the so-called ‘Excluded UK’ small businesses and sole traders that do not qualify for support.
Artwork and retouching expert Bill Greenwood is one of those affected. He said: “Since March 2020, millions of Excluded UK individuals really have been left to rot by this Chancellor. These can be PAYE freelancers, small one man band designers who work from home. The small businesses who have no rateable property in their own name or rent a space from a bigger business. Millions of Forgotten Ltd firms, those newly formed small companies or self-employed.
“The Chancellor has used 'risk of fraud' as an excuse not to support millions. But his schemes for CJRS and SEISS are not tested. Millions in grants have been handed out to many, who can claim a grant and still work. Some unscrupulous firms have claimed furlough for staff still working. Fraud is rife in the systems already put in place. Billions given out in rate relief for shops still open, trading and profiting such as supermarkets.”
Andrew Lupton of Panther Creative also voiced his frustration on Twitter.
WHAT SUPPORT PACKAGE, Ltd Company Director, paid in Divs and min salary, No Government Support for 10 months, just a BBL which is #DebtNotSupport, I don't think by a mile I will be the only one, go to @ExcludedUK you will see how bad it really is
— Panther Creative Ltd. Design • Artwork • Print (@panthercreative) January 5, 2021
The Federation of Small Businesses (FSB) wrote to Sunak before Christmas outlining a five-point plan to “save the small business community and help it get through the toughest Q1 of any year that they have ever faced”.
It called for a full second round of £10,000/£25,000 Small Business Cash Grants, a German-style Revenue Loss Scheme, a Directors Income Support Scheme and help for the more recently self-employed at the same time as the SEISS Grant, and extended repayment and limits for bounce-back loans.
