The UK government have pledged their support to businesses in Northern Ireland during the Brexit transition period by unveiling a £355 million support package. This money will go towards the costs that will be involved with trading with the rest of the UK.
Trader Support Services To Help Firms Handle New Bureaucracy
A recent article in The Guardian commented that:
`£200m would be spent on a trader support service (TSS) to help firms handle new bureaucracy to move goods across the Irish Sea, turning the government into a de facto customs agent for traders.
A further £155m will be spent on digital technology to streamline processes required by the new internal border created by the Northern Irish protocol, part of the Brexit deal that aligns the region to the UK customs territory and the EU customs code.
It means all businesses sending goods to the region from Great Britain will have to make formal declarations for the first time.`
Getting Traders Ready For The Transition Period
The government have also pledged £300 million in funding for the Peace Plus programme in Northern Ireland and cabinet office minister Michael Gove is quoted in the same Guardian article, saying about these funding programmes:
“Today’s £650m investment underlines our absolute commitment to the people and businesses of Northern Ireland as we move towards the end of the transition period.”
“As we continue to engage with businesses, and our discussions with the EU proceed, we will update these resources to ensure that traders are ready for the end of the transition period.”
Economic Indicators Making Grim Reading
The support package drawn up is welcome news and will be much needed as the economic indicators make pretty grim reading for the next few months. Whilst GDP is expected to fall by around 9%, unemployment is forecast to rise by a further 8%. Forecasts have to be taken with a rather large pinch of salt right now as the people drawing them up have no idea whether we will have a big second wave of coronavirus infections which could lead to the shutting down of large sectors of the economy once more. If this happens the economy will be even deeper trouble.
It is vitally important you keep a handle on all your incomings and outgoings if you run a business. Failure to do this when times are rough can lead to catastrophic consequences. If you need help with keeping a grip on your finances, business planning and forecasting, please give our accountancy team a call on 028 3752 2909 for an initial consultation.