Sirius News Bulletin – 22nd January 2021
This bulletin provides a summary of topical news, announcements and policy developments affecting business across the UK.
UK EU trade
New inquiry on EU-UK Trade and Cooperation Agreement
The House of Lords EU Goods Sub-Committee has launched an inquiry into future UK-EU relations and the implications that the EU-UK Trade and Cooperation Agreement will have for trade in goods. The committee’s inquiry will examine non-tariff barriers (rules of origin and technical barriers to trade), customs arrangements, transport and level playing field provisions.
Read more about the inquiry at: https://committees.parliament.uk/committee/445/eu-goods-subcommittee/news/138576/eu-committee-seeks-evidence-for-new-inquiry-on-euuk-trade-and-cooperation-agreement/
Excessive vet checks and paperwork hit meat exports to EU
Excessive stock checks and stringent paperwork requirements are causing huge costs and delays for UK meat exporters. The Food Standards Agency has been criticised for its approach to supplying vets to carry out the necessary animal health and certification checks.
Read more about the delays at: https://www.fwi.co.uk/business/markets-and-trends/meat-prices/excessive-vet-checks-and-paperwork-hit-meat-exports-to-eu
Financial support for fishing businesses exporting to the EU
Defra has announced funding of up to £23 million to support seafood exporters who have been adversely affected by the Covid-19 pandemic and are adjusting to new export requirements. The funding will be targeted at fishing businesses that can provide evidence of losses from exporting fish and shellfish to the EU.
Read more about the funding at: https://www.gov.uk/government/news/new-financial-support-for-the-uks-fishing-businesses-that-export-to-the-eu
Businesses must register to account for VAT on EU sales
UK businesses that have supplied eligible digital and telecommunication services to EU customers since 1 January 2021 will have to register for the non-union VAT MOSS (mini one-stop shop). The non union MOSS enables UK businesses to account in just one EU country for VAT due in multiple EU countries. Eligible businesses have until the tenth day of the month after relevant sales are first made in an EU country to register for the non-union MOSS.
Read more about the non-union MOSS at: https://www.icaew.com/insights/tax-news/2021/jan-2021/brexit-and-vat-registering-for-the-nonunion-moss
Covid-19
Court judgment on business interruption insurance
The Supreme Court has allowed the Financial Conduct Authority’s appeal in the business interruption insurance test case. This means that many thousands of policyholders will now have their claims for Covid-related business interruption losses paid.
Read more about the appeal at: https://brc.org.uk/news/finance/court-judgment-on-business-interruption-insurance/
Firms accused of putting workers’ lives at risk by bending lockdown trading rules
Irresponsible firms are exploiting looser lockdown regulations to bring thousands of non-essential workers into sometimes busy workplaces, with little chance of enforcement action by the Health and Safety Executive.
Read more about the story at: www.theguardian.com/politics/2021/ja n/16/bosses-accused-putting-workers-Iives-risk-bending-lockdown trading-rules?
HMRC must explain why some taxpayers received no Covid support
The Public Accounts Committee has urged HMRC to explain why it couldn’t provide Covid support to freelancers and other groups that have been excluded. The committee also called on HMRC to set out steps it can take to overcome those obstacles.
Read more about the story at: https://committees.parliament.uk/com mittee/127/public-accounts-committee/news/138560/hmrc-must urgently-explain-why-some-taxpayers-have-had-no-support-during-covid/
UK consulting industry grows 2.5% despite pandemic
A new study published by the Management Consultancies Association has revealed that despite the pandemic the sector grew by 2.5% in 2020. The study also predicts that growth in the sector will accelerate dramatically by the end of 2021.
Read more about the study at: www.consultancy.uk/news/26649/uk-consulting-industry-grows-25-in-spite-of-pandemic
Hospitality
GDP figures highlight economic importance of hospitality
Estimated figures published by the Office for National Statistics indicate that in November 2020 UK GDP will fall by 2.6%, with the hospitality sector, which was effectively closed in England during the month, accounting for just over one third (0.9%) of the decline.
Read more about the figures at: www.bighospitaIity.co.uk/ Article/2021/01/18/UKHospitaIity-GDP-figures-highIight-economic-im portance-of hospitality
Employment in hospitality sector won’t recover until after 2023
The jobs lost in the hospitality sector in 2020 will take longer to recover than in most other sectors according to a forecast published by EY. The forecast predicts that the sector will employ substantially fewer people in 2023 than it did in 2019.
Read more about the forecast at: www.bighospitaIity.co.uk/ Article/2021/01/19/HospitaIity-sector-expected-to-employ-fewer-people-in-2023-than in-2019
Agriculture
BPS cross-compliance rule changes for 2021 across UK
Greening rules may have been relaxed from 1 January 2021, but farmers claiming under the Basic Payment Scheme must continue to follow the main cross-compliance rules governing activities such as hedgecutting, when fertilisers can and cannot be applied to land, and livestock record-keeping requirements.
Read more about the cross-compliance at: www.fwi.co.uk/business/payments-schemes/bps/bps-cross-compl iance-rule-changes-for-2021-across-uk
Construction
New regulator to ensure construction materials are safe
A national regulator for construction products has been introduced to ensure homes are built from safe materials. The regulator will have the power to remove any product from the market that presents a significant safety risk and prosecute any companies that ignore product safety rules.
Read more about the regulator at: www.gov.uk/government/news/new-regulator-established-to-ensure-construction-materials-are-safe
Late payment
Government tackles late payments to small firms to protect jobs
Reforms to the Prompt Payment Code (PPC) to crack down on delayed invoices owed to small businesses have been announced by the Government. Under the reforms, companies that have signed up to the PPC will be obliged to pay small businesses within 30 days, half the time outlined in the current code.
Read more about the reforms at: www.gov.uk/government/news/government-tackles-late-payments-to-small-firms-to-protect-jobs
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