James Pinchbeck

By James Pinchbeck Partner, Streets Chartered Accountants

What were we hoping for or anticipating on a grey day in March, nearly 12 months since the start of lockdown? Perhaps for many it wasn’t all a ray of sunshine from the Chancellor Rishi Sunak as he delivered the 2021 Budget. Whilst the announcements might not have us grabbing for the factor 50 sun cream, he certainly did provide a level of optimism for businesses and business owners.

The Chancellor highlighted that we were experiencing a swift and sustained economic recovery in the face of the pandemic. Whilst the cost of the necessary measures to support the economy, jobs and livelihoods was at a level only comparable with that faced over the period of the world wars, our long-term economic prosperity would be underpinned through investment in improving productivity, harnessing innovation and through focusing on a more sustainable and green economy which embraced technology and skills.

Our journey to the future though starts in the here and now, with, in the coming months, a focus on supporting the economy and businesses whilst at the same time safeguarding jobs, as well as ensuring those out of work or looking for work can find suitable vacancies. Certainly, it’s clear support through apprenticeships and skills training is high on the agenda.

In outlining the government’s response and support for those affected and impacted by the pandemic, the Chancellor reiterated that the roadmap for our exit out of lockdown was irreversible. It was then great to hear that measures of support for businesses, including the employees and the self employed are going to be in place for perhaps much longer, perhaps longer than might have been thought prior today. This takes into account that for many, getting back to business, reopening and returning to pre-pandemic trading levels is going to take some time, not least for sectors like the entertainment, hospitality and leisure, bricks and mortar non-essential retail, the arts and sport.

Looking at the key announcements and measures to support businesses, the workforce and the self-employed, the following were perhaps key:

• Furlough to remain in place until the end of September, with employers being asked to contribute towards salary at the rate of 10% in July and 20% in August and September
• For businesses looking for support to ‘restart’ their business there was the introduction of the Business Restart Grant, with £6,000 available to non-essential retail and £18,000 available to those in the hospitality sector. This is in addition to the provision of the new Recovery Loan Scheme which will provides loans from £25,000 up to £10,000,000.
• Those benefiting from the business rates holiday will be able to continue to do so until the end of June at which time relief will be reduced to two thirds.
• Those who are self-employed will benefit from an extension to the Self-Employed Income Support Scheme and the provision of a 4th and 5th grant application. The scheme will also now be open to those who have not been able to apply and the newly self-employed if they filed a Self-Assessment Tax Return by midnight on 2^nd March.
• The hospitality and tourism sector will benefit from a continuation in the rate of VAT charged from 20% to 5% until the end of September, at which time the rate will increase to 12.5% for 6 months.
• For many small businesses facing increased and tough competition, the Chancellor announced measures to introduce a Help to Grow programme which provides management training and access to technology and financial support for purchasing software – hopefully accounting software
• In addition, the housing sector received perhaps an already anticipated boost with the extension of the removal of stamp duty on house sales up to £500,000. This will remain in place until 30th June.

Perhaps the headline grabber wasn’t the pending increase to Corporation Tax (from 19% to 25% in 2023), or the fact that duties on fuel and alcohol remain unchanged, but it was the introduction of the ‘super deduction’ tax relief available to those making business investments. The two-year tax break would allow companies to deduct 130% of their investment from their taxable income, cutting their taxes by the equivalent of 25p in the pound.

Overall it was perhaps as expected a Budget for the here and now, but the Chancellor was more than clear about the need to ensure government borrowing and the budget deficit are not only kept in check, but that the national burden of debt is reduced, whether this is in his lifetime or the next generation of chancellors, only time will tell. 

We would though be naive to think we shouldn’t expect tax hikes and reform of tax legislation at a time when it might at least be more palatable. For now, given the element of certainty provided, the scene and conditions have been set for businesses to work on and put in place their roadmap to recovery.

More of our budget coverage:

• Budget 2021: What you need to know
• Budget brings renewable energy funding in North Lincolnshire
• The Humber, and East Midlands Airport, two of eight UK freeports
• Lincolnshire towns and city get over £130m regeneration funds

James Pinchbeck is Partner at Streets Chartered Accountants, a top 40 UK accountancy practice. James, as a specialist in marketing professional services, is responsible for the development and implementation of the firm's strategic marketing as well as its engagement in the community it which it works and serves. His role allows him to capitalise on his broad interest in the national and local economy as well as his passion for enterprise. As part of his wider interest in enterprise, marketing and education, James is a board member of NBV – the East Midlands Enterprise Agency, an FE College Governor and a board member of the University of Lincoln’s Business School. He is also an Institute of Director’s past Branch Chairman.

By James Pinchbeck Partner, Streets Chartered Accountants

It has now been seven months since the start of lockdown and certainly the business world has experienced many changes in terms of responding to, and getting to grips with, the impact of the pandemic.  

The way we work, where we work, when we work and even the type of work we do has changed for most of us, if not all.

As is often the case with such significant changes and circumstances, it is not untypical for new words and phrases to come to the fore as we look to be able to communicate with each other on and around the situation.

Over the last few months or so there have been a number of words and phrases bandied about, some perhaps new words and some words and phrases that have gained increased use or used in a new context.

The following 10 words or phrases are the ones that seem to have had wider use and perhaps some of these provide a little light relief:

1. Unprecedented – How many meetings or discussions are including this word and the use of the word ‘times’ to follow as we try to understand and assess the situation we are in and the conditions we face.  

2. New norm – in a world turned seemingly upside down and with our pre-lockdown sense of the norm and routine gone, we are all trying to define and even shape what normal now is and looks like. Most of us want some sense of order, routine, processes and structure so that we can function and have a sense of purpose.

3. You’re on mute – whilst the likes of Zoom, MS Teams and google hangouts existed pre lockdown the norm was still to have in person meetings, perhaps with the occasional virtual one. Virtual meetings though have given rise to its own language and typical behaviours. It would be interesting to know how many times someone has said ‘you’re on mute’ as someone attempts to re-enact a silent movie without the subtitles.

4. Sorry I am late I had trouble connecting – with our roads less busy, stuck in traffic is unlikely to be something you hear from someone late for a meeting. It now seems either as a genuine or less so excuse we seem to blame our connectivity or this has become an acceptable excuse.

5. Pivot – whilst some businesses may have considered the need to respond to lasting change brought about by the pandemic, others have been more focused on short-term survival. In doing so they have chosen to ‘pivot’ their business looking at business models or practices conducive to survival.  According to the Harvard Business Review, pivoting is a lateral move that creates enough value for the customer and the firm to share.

6. Repurpose – whilst sounding like a word you might here in a spoof business comedy as some form of management speak, many business leaders and managers have had to either look for alternative markets for their goods or services or look to different business models and processes. The skills and role of those able to repurpose are likely to be in demand for some time – perhaps with businesses even looking to appoint Repurposing Officers (ROs).

7. Blursday – a new made up word being used to describe the situation when lockdown and working from home has got to the point that you have no real idea what day it is, even that you didn’t realise it is a non-working day.

8. Quranteams – a term being used to describe your virtual work bubble – we do like to have a name for everything.

9. Worklife blend/balance – even before lockdown greater consideration was being given by individuals to their work-life balance. Though for those working and perhaps surprisingly those furloughed, greater consideration and importance is being placed on one’s worklife balance, wellbeing and mental health.

10. Embracing technology – whilst technology, its use and application has accelerated the pace of change it has never been as fast as it has been since lockdown. The term embrace technology has possibly been used to describe the situation where we all, whether in our work, personal or family life, have had to get to grips with and use more technological applications. For some this may have been easier than for others, however it has highlighted issues around skills and proficiency and the need for training, support and investment.

No doubt more words and phrases will come to the fore over the coming months, some will be lasting in terms of vocabulary and some new words may even make the next edition of the Oxford English Dictionary. 

James Pinchbeck is Partner at Streets Chartered Accountants, a top 40 UK accountancy practice. James, as a specialist in marketing professional services, is responsible for the development and implementation of the firm's strategic marketing as well as its engagement in the community it which it works and serves. His role allows him to capitalise on his broad interest in the national and local economy as well as his passion for enterprise. As part of his wider interest in enterprise, marketing and education, James is a board member of NBV – the East Midlands Enterprise Agency, an FE College Governor and a board member of the University of Lincoln’s Business School. He is also an Institute of Director’s past Branch Chairman.