The IPIA and BAPC has met with the Government Department for Business, Energy, and Industrial Strategy (BEIS) as part of a series of discussions on how industries, such as print, which have been severely impacted by Covid-19, do not go over a cliff edge as restrictions are lifted. Specifically, a graduated approach to the withdrawal of Covid-19 business support mechanisms is being being explored.
“Our meeting with BEIS [on 15 April] was very productive and inspired a tremendous amount of confidence about the Government’s plans to support industries such as ours when we move into the post Covid-19 recovery phase,” said Graeme Smith, IPIA chairman. “They also recognised that the print industry is a decisive barometer for the economic health of every other sector of our economy and is intrinsically linked with each of the UK’s major industrial bases.”
Recommendations were also made to BEIS on the expansion of business support packages to include: a time-limited and Government-backed book debt loan scheme; suspension for 12 months of auto-enrolment pension fees for employers; a total suspension of VAT on print and merchandising material for two-years following the lifting of restrictions; and a substantial increase in capital equipment allowances.
Smith added: “We presented the findings of our Covid-19 Business Impact Survey to BEIS, in addition to the initial feedback from our new Finance and Recovery Survey, to provide them with intelligence as to the far-reaching economic damage being caused by this crisis. Among the recommendations we made based on this research was the need for a glide path for the eventual withdrawal of Government Business Support schemes. Another key recommendation is that the Job Retention Scheme needs further flexibility built into it for when restrictions are lifted, and demand starts to flow back into the system.”
Smith continued: “Specifically, that a staff member’s designated furlough period could be split up over the course of the scheme, instead of having to be taken in one continuous block. Or at least that the minimum furlough period that has to be taken consecutively be reduced to two weeks.”
The representatives from the IPIA and BAPC also provided feedback from the print industry on the poor provision of the Coronavirus Business Interruption Loan Scheme (CBILS), and how it could be adapted to provide greater financial confidence and support to sectors such as ours.
BEIS provided very constructive assurances that the issues being experienced with the CBILS provision were a top priority for Government and that over the next two weeks it expects a significant improvement in the take-up of, and access to, the scheme.
A case was also made to BEIS about the inclusion of print businesses in the £25,000 Grant Scheme for hospitality, retail and leisure where they can prove they have significant exposure to these sectors. BEIS explained they have been making representations to the Treasury on this specific issue on behalf of several industries with a similar level of exposure. It requested that information and case-studies continue to be provided to them to aid these discussions.
Graeme concludes: “We are very heartened by the meeting we have had with BEIS. They clearly understand in detail the significant and very specific challenges facing the UK print industry. They are working very hard to help evolve the package of support measures in place to prevent businesses going into administration and making redundancies if at all possible. They have requested that we continue to feed them information on how the range of business support packages are being received on the ground, once they become available, and how our sector is responding to them in practice. We will redouble our efforts in this regard and ensure we are doing our utmost to represent and support the UK print industry.”
