May 2020

MAY 2020 AFTERMARKET 49 www.aftermarketonline.net BUSINESS T he COVID-19 outbreak has swept across the world, and in the UK has had a profound impact on day-to- day life. Here, Aftermarket has compiled some of the key decisions and actions of the last few weeks that have related to individual techs, garages and the wider sector. 20 March: Government to pay wages Chancellor announces One of the first major decisions taken that would impact on garages was the move by government to pay the staff wage bills for businesses struggling as a result of the COVID-19 outbreak. Chancellor of the Exchequer Rishi Sunak announced the radical Coronavirus Job Retention Scheme at the daily Coronavirus Downing Street press conference. Through the scheme, any business can access a grant to cover 80% of a worker’s salary, up to a maximum of £2,500 a month. This was back-dated to 1 March, and is set to run for four months. The Chancellor said: "For the first time in our history the government is going to step in and pay people's wages. We will provide grants to pay for as many jobs as necessary.” The Chancellor also announced that the next quarter’s VAT payment for businesses would be deferred to June, as well as support for the self- employed: “I’m strengthening the safety net for self-employed people too by suspending the minimum income floor for everyone affected by the economic impact of coronavirus.” Commenting on the move, SMMT Chief Executive Mike Hawes said: "The Chancellor’s unprecedented package of emergency funding and tax support will come as a huge relief to automotive companies of all shapes and sizes as they battle to safeguard their businesses and support thousands of workers and their families who otherwise face hardship.” CORONAVIRUS ROUND-UP The last month has seen a huge tsunami of change resulting from the Coronavirus outbreak 23 March: Stay-at-home measures announced/ Garages listed among essential businesses able to remain open Garages were among the essential businesses allowed to remain open, following the introduction of more stringent restrictions to help fight the Coronavirus pandemic. There were a number of exemptions to the ban, including supermarkets, pharmacies, petrol stations, post offices and banks. Garages were on this list. Businesses that are in the supply chain of essential businesses are also able to remain open. Garages also discovered they could lose some members of staff for at least three months, due to government advising those with serious health conditions to self- isolate as soon as possible. Due to the risk posed to them by COVID-19, thousands of people with serious and underlying health conditions received letters from government, advising them to “take themselves out of society” for at least 12 weeks. MPs also queried the discrepancy between the support being offered to employees, against that being provided to the self-employed. While employees were offered 80% of their salaries, limited to a maximum of £2,500 a month, the self-employed can only access £94.25 a week, via the Universal Credit system. However, following an evidence session with the Chancellor of the Exchequer the Treasury Committee issued a call for evidence on the Government's Coronavirus financial package, and is planning to continue holding evidence sessions on the economic impact of Coronavirus. 24 March: Coronavirus assessed by suppliers Suppliers began to announce how they would address the situation going forward, whether they would shut until government restriction are lifted, or continue operating. Autoparts and Midwest Motor Factors was one of those that opted to temporarily lock up. Craig McCracken, Group Factor Manager at Autparts UK said: “As we enter unchartered territory, we want to ensure that our suppliers are provided with as much information as