During Wednesday’s States meeting, Deputy Gavin St Pier announced various measures to support local businesses through the financial disruption caused by the Coronavirus.
These measures include:-
1. Deferral of Social Insurance contributions. This applies to self-employed and employer contributions only. Businesses will have the option to defer payments for both quarters 1 & 2, with the intention to review to extending this during Q2.
2. Deferral of Commercial TRP for 2020 until further notice. For those who have already paid, a reimbursement can be requested. Those paying by direct debit can request for this to be suspended.
3. Deferral of rent payments to the States of Guernsey by business tenants.
4. Suspension of mooring fees for commercial fishermen.
5. Establishment of a scheme to support banks in providing liquidity to businesses.
6. Establishment of a £5m ‘hardship’ fund. This will be administered via Social Security to support those in greatest need who may not otherwise qualify for Income Support or Sickness Benefit.
It is inevitable that businesses are going to experience cash flow difficulties. These measures are to provide immediate relief to enable businesses to continue to trade through the worst periods.
These measures are designed to “suspend and defer”, rather than to waive the obligations at this stage.
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