CEA COVID-19 Bulletin #6
Please click here for the latest COVID bulletin from the CEA. Lots of new issues in this one and updates to others. Government support is very much a moving target so please check up for any updates on the schemes you are planning to utilise.
The CEA is working hard to support our members through these unprecedented times. This includes:
- Coronavirus Business Interruption Loan Scheme (CBILS) – after pressure from a number of quarters, the lending criteria for CBILS was clarified/relaxed last week. Whilst small loans (up to £250k) need not now to be secured against assets or personal guarantees. However, the banks still have liability for 20% of the loan which is not underwritten by HMG, so it will be interesting to see if loans start to be agreed in the coming days. Our own MP, Kevin Hollinrake, is Chairman of the All Party Parliamentary Group on Fair Banking for Business. Kevin has asked for feedback from companies trying to access CBILS, or the version for larger company loans. ACTION REQUIRED – please tell us of any issues you have experienced trying to access a business loan with CBILS and we will request action from Kevin.
- COVID-19 bulletins (6 have now been issued). We have been able to supply clarification on some of the detail of the various government schemes and pick up on some additional issues of importance to members.
- Shut downs – monitoring our members. From our conversations, approximately 80% of member factories are substantially closed or set to close imminently. Reasons are split between health and safety concerns, supply chain issues and market collapse. Ironically, the Chinese market and sources of supply already seem to be recovering.
- Job Retention Scheme – the full details of the Scheme are not yet published. We are pressing for the full rules to be issued, even if the supporting HMRC portal follows at a later stage (currently promised for the end of this month). It is confirmed that employees can come “on and off” furlough providing a minimum of three weeks is spent on furlough. This is helpful to a degree – but doesn’t help the position of key worker service engineers who may only be needed for a limited number of call outs to facilities of strategic importance.
- Transition Engines – lobbying the European Commission for a moratorium on the regulation requiring pre-Stage V engines to be fitted into finished machines by 30th June this year.
- Construction industry – the BEIS Secretary of State issued a letter last week to the construction industry confirming the importance of the sector to government policy.
- Hire industry – plant and tool hire shops and depots are listed as facilities that can remain open..
- Plant theft – from soundings, we have learnt that plant and tool theft has skyrocketed in the last couple of weeks. A combination of closed construction sites and criminals targeting plant as motor vehicles are now mostly in their garages or owners’ drives. We are co-ordinating messages to the trade press.
- Regular (online)meetings contact with CECE, SMMT, CPA and other related trade associations – as well as keeping up dialogue with member companies.
- Government Lobbying: daily contact with BEIS and Department for International Trade.
- A weekly call with our local MP – the Chairman of the All Party Parliamentary Group on Fair Business Banking.
The CEA is here for our members – tell us if you need help. As one member, Kate Wickham MBE from Gate 7, wrote this morning… Thanks for your support, I do think the CEA are doing a good service to their members. I would not want to be on the outside at a time like this!!!!
