The Independent Print Industries Association (IPIA) and British Association for Print & Communication (BAPC) have been left with ‘cause for confidence’ about the support the print sector is to receive from the UK Government, following an update meeting with the Department for Business, Energy, and Industrial Strategy (BEIS).
At the meeting, which took place on 15 April, the organisations stressed the, ‘critical need for a recovery glide path to be implemented for initiatives such as the Coronavirus Job Retention Scheme.’
For its part, BEIS confirmed that the UK Government was consulting on a series of strategies to ensure that industries such as print ‘did not go over a cliff edge’ as restrictions are lifted. Specifically, this means that a graduated approach to the withdrawal of COVID-19 business support mechanisms was being explored.
IPIA chairman Graeme Smith said, ‘Our meeting with BEIS was very productive and inspired a tremendous amount of confidence about the Government’s plans to support industries such as ours when we move into the post COVID-19 recovery phase.
‘BEIS also recognised that the print industry is a decisive barometer for the economic health of every other sector of our economy, and is intrinsically linked with each of the UK’s major industrial bases.’
Other recommendations the organisations made to BEIS include:
- A time-limited and Government-backed book debt loan scheme;
- Suspension for 12 months of auto-enrolment pension fees for employers;
- A total suspension of VAT on print and merchandising material for two-years following the lifting of restrictions; and
- A substantial increase in capital equipment allowances.
Mr Smith continued, ‘We presented the findings of our COVID-19 Business Impact Survey to BEIS, in addition to the initial feedback from our new Finance and Recovery Survey, to provide them with intelligence as to the far-reaching economic damage being caused to our industry by this crisis.
‘Among the recommendations we made based on this research was the need for a glide path for the eventual withdrawal of government business support schemes.
‘Another key recommendation is that the Job Retention Scheme needs further flexibility built into it for when restrictions are lifted, and demand starts to flow back into the system. Specifically, that a staff member’s designated furlough period could be split up over the course of the scheme, instead of having to be taken in one continuous block. Or at least that the minimum furlough period that has to be taken consecutively be reduced to two weeks.’
IPIA and BAPC provided further feedback from the print industry on the poor provision of the Coronavirus Business Interruption Loan Scheme (CBILS), and how it could be adapted to provide greater financial confidence and support to sectors such as print. A strong case was also made to BEIS about the inclusion of print businesses in the £25,000 Grant Scheme for hospitality, retail and leisure, where they can prove they have significant exposure to these sectors. BEIS explained they have been making representations to the Treasury on this specific issue on behalf of several industries with a similar level of exposure. It requested that information and case studies continue to be provided to them to aid these discussions.
IPIA and BAPC have jointly launched The Sourcing Bridge, which will link up appropriate companies to ensure they can continue to access suitable trade suppliers or partners to help them through the coronavirus pandemic.