News

NEW REPORT: The Impact of Covid-19 on DCMS Sectors: First Report

Covid-19 crisis presents biggest threat to UK's cultural infrastructure, institutions and workforce in

a generation, say MPs

Government has consistently failed to recognise scale of challenge facing culture, sport and tourism.

The Government has been ‘too slow’ to respond to the needs of the DCMS sectors during the Covid-

19 outbreak with many organisations facing an “existential threat” to their survival, say MPs. In a wide-ranging report, the DCMS Committee finds Ministers have consistently failed to recognise the scale of the challenge that Covid-19 presents to culture, sport and tourism.

MPs say the response to the crisis by the Department of Digital, Culture, Media and Sport has been hampered by the Department’s lack of spending power and a fundamental misunderstanding across Government of the needs, structures and vital social contribution of sectors such as the creative industries. DCMS remains one of the smallest government departments by budget and staffing and has seen one of the highest turn-over of Secretaries of State of any, with Oliver Dowden as ninth inthe role since May 2010.

The Report finds the loss of performing arts institutions and cultural workers would put at risk the Government's 'levelling up' agenda and reverse decades of progress in cultural provision, diversity and inclusion.

DCMS Committee Chair Julian Knight MP said:

“We are witnessing the biggest threat to our cultural landscape in a generation.

“The failure of the government to act quickly has jeopardised the future of institutions that are part of our national life and the livelihoods of those who work for them.

“Our report points to a department that has been treated as a ‘Cinderella’ by government when it comes to spending, despite the enormous contribution that the DCMS sectors make to the economy and job creation. We can see the damaging effect that has had on the robustness and ability of these areas to recover from the Covid crisis. The £1.57 bn support is welcome but for many help has come too late.

“We urge the government to act on our recommendations, to recognise the value these sectors provide and imagine how much bleaker the outcome for all without their survival.”

The Report considered the effectiveness of emergency business support measures announced by

HM Treasury in addressing the distinct needs of the sectors, in particular where schemes were dueto end. MPs were struck by the dire situations outlined by numbers of people who felt the Government’s response to Covid-19 had allowed them or the industry they worked in to fall through the cracks. With DCMS sectors relying largely on freelancers or the self-employed, MPs call for an urgent review of existing schemes with tailored action to address individual sector needs.

Culture and the creative industries: Regrettable delay

The Report found it “regrettable” that it took so long for the Government's £1.57 billion supportpackage to be announced with the uncertainty blamed for closures and redundancies in the cultural sector that might otherwise have been avoided. As a result, the cultural industries are likely to face mass redundancies with a lasting impact on access to the arts, careers in the creative sectors and the UK’s position as a world leader in arts and culture. 70% of theatres and production companies risked going out of business by the end of the year, with more than £300 million lost in box office revenue in the first 12 weeks of lockdown. Grassroots music venues were also hit with estimates that 93% faced permanent closure, many unable to meet commercial rent demands. 90% of all festivals would be cancelled this year.

MPs call for urgent tailored measures to reduce the impact on the largely self-employed workforce with approximately two thirds of those working in the music industry and theatres being self employed.

KEY RECOMMENDATIONS

• Sector-specific recovery deal for performing arts that includes continued workforce support measures, including enhanced measures for freelancers and small companies; clear, if conditional, timelines for reopening, and technological solutions to enable audiences to return without social distancing; and long-term structural support to rebuild audience figures and investment

• Government should introduce flexible, sector specific versions of the CJRS and SEISS guaranteed for the creative industries until their work and income returns to sustainable levels. Any such measures should account for the differences in timeframes for the easing Covid-19 restrictions across the four nations. Support for the self-employed, in particular, should be urgently reviewed and amended so that it covers people who have been excluded to date

• Cut in VAT on ticket sales for theatre and live music is extended beyond January 2021, for the next three years. The Government should extend Theatre Tax Relief to 50% for the next three years and introduce a Music Tax Relief

The Government must do more to restart the performing arts. The five-stage plan announced by the Secretary of State requires timescales or public health targets for when each stage might commence.

On 17 July, it was announced that indoor performances with socially distanced audiences in England could resume from 1 August. However, the Report notes that telling venues they can reopen with just a few days’ or weeks’ notice does not address the lead times for performance, the challenges of social distancing or the concerns about audience behaviours.

• Government should publish a 'no earlier than' date for stage five of its plan to reopen performing arts venues
• Cultural Renewal Taskforce must co-ordinate cross-sector work on technological solutions for mass gatherings, ensuring the sports and entertainment sectors work together, alongside NHS Test and Trace, to develop a universal, technological solution to enable the safe return of ticket holders to events

Sport: Call for ‘football re-set’

Recreational and elite sport have been interrupted during the Covid-19 outbreak, with serious financial implications across both sectors. However the Covid-19 crisis offered an opportunity for football in particular to 're-set' and to introduce essential reforms to financial models, management structures and diversity and inclusion that would benefit the game in the long-term.

MPs found the current football business model was not sustainable with the Covid-19 crisis starkly highlighting financial issues in the leagues below the Premier League. The decision by some Premier League clubs to make use of the Government's Job Retention Scheme and furlough non-playing staff while continuing to pay players' wages in full is described as “deplorable". Evidence from the EFL predicted that clubs were facing a ‘pretty grim cash hole’ towards autumn. As the main income generator of English football, if the Premier League does not step up to help the EFL, many more

clubs would follow in the footsteps of Bury FC.

The Report supports calls from elite sports organisations for the Government to extend the financial

assistance programmes for those organisations which are unable to generate revenue until mass

gatherings are permitted.

• DCMS works with HM Treasury to identify organisations within the professional sport sector that remain unable to generate revenue until mass gatherings are permitted again, and ensure that the systems that have helped them survive the crisis thus far, such as the Coronavirus Job Retention Scheme and the VAT and PAYE deferral period, are extended beyond the current cut-off dates, and backdated where the schemes have already come to an end
• DCMS should engage with the Premier League and the EFL to learn lessons from abroad on policies such as salary caps

MPs note efforts to raise awareness about the lack of diversity within football's boards and management structures following the death of George Floyd. However action such as the FA’s proposed voluntary code for ‘Equality In Football Leadership’ would not motivate clubs to act with sufficient speed. With no Premier League club and virtually no EFL club having a black owner, Chair or Chief Executive, further action was needed to tackle a fundamental inequality at the heart of the game.

• DCMS should revise Code for Sport Governance, adding targets for BAME representation on boards

Committee members recorded their dismay at the slow progress in kicking out homophobia from football. MPs would seek to continue work of the predecessor Committee to amend the Football Offences Act 1991 to make homophobic chanting at matches illegal.

The Report addresses the disproportionate impact on women’s elite sport, consistently underfunded compared to men’s. Assistance for women’s professional football to set up testing came too late to prevent the cancellation of this season’s women's competitions. Women’s sporting events this summer were largely cancelled while professional men's sport began to return behind closed doors.

The knock-on impact of the cancellation of women's events was an expected reduction in the number of women inspired to take part in sporting activities.

• Government should outline how it intends to support the women's game post-crisis and ensure that, going forward, men's elite sports are not further prioritised at the expense of the women's game

The Government is urged to ensure that marginalised groups including BAME communities and women are not left behind in efforts to get the UK back to sport and fitness. A fear of returning to group physical activity in recreational sport was found likely to exacerbate existing inequalities in accessing exercise, with decreased opportunities for physical activity during and after the pandemic contributing to Covid-related deaths within BAME communities and across other demographics in society.

• DCMS should establish a fund to invest in helping people whose activity levels have been adversely affected by the lockdown restrictions—including older people, BAME people, disabled people, women, people from lower socio-economic backgrounds and those unable to access physical activity content online—to ensure that the progress that was being made in physical activity levels within these groups is not set back by Covid-19

Tourism:

International tourism to the UK had halved by April 2020 and has continued to decline with visitor attractions including museums and galleries hit hard as a result. Organisations face an end to the Coronavirus Job Retention Scheme in October, have largely depleted their financial reserves, and will have to open at a reduced capacity with social distancing measures in place. Seasonal workers in the tourism industry were found to have fallen between the cracks in the Coronavirus Job Retention Scheme.

• We recommend that DCMS works with the tourism sector and HM Treasury to review the measures in place to support tourism businesses and seasonal workers to ensure they fully meet the needs of the sector

• To secure collections at risk from museum insolvencies, the DCMS should introduce a temporary change to legislation to ensure that if an accredited museum becomes insolvent as a result of the Covid-19 crisis, the institution's collections cannot be liquidated for financial assets for the first 12 months

Role of Government Department for Digital, Culture, Media and Sport:

Throughout the Covid-19 crisis, vulnerable people across the country suffered as a result of being excluded from digital services and communication. The Report calls for HM Treasury to ensure DCMS is sufficiently resourced to take the lead on tackling digital exclusion across Government.

• The Government and Ofcom should work with telecommunications companies to facilitate data gifting and wi-fi sharing. Ofcom's work on affordability of internet connectivity should also tackle the poverty premium associated with pay-as-you-go mobile services.

Wider criticism of the Department suggested it lacked the clout to make the difference that was needed. Evidence pointed to a sense that once issues had been escalated to Ministerial level, the Government had not taken meaningful action to protect a sector nor made sector specific interventions quickly enough. The scale and severity of gaps in workforce eligibility for Governmen support led some to question why Government as a whole, and HM Treasury specifically, had failed to respond to the needs or understand the value of the DCMS sectors during this crisis. A joint submission of creative trades unions and copyright collecting societies representing more than 330,000 members, many of them freelance, expressed disappointment that DCMS had not properly heard their concerns or that of other creative freelancers. The Report gives its backing to calls for a 'Creators Council' to boost confidence across the sector and ensure its views are represented at a time when many of the creative industries workforce are struggling to stay in the sector

• We recommend that DCMS forms a Creators Council as a mechanism for better dialogue with the creative workforce to understand its needs and viewpoints as we emerge from this crisis.

Background:

• Inquiry received 660 pieces of written evidence
• DCMS sectors as a whole contributed more than £224 billion or 11.7% of Gross Value Added

(GVA), to the UK economy in 2018

• 5.3 million jobs across the DCMS sectors (accounting for 15.7% of the UK total)
• DCMS remains one of the smallest departments by both budget and staffing and has seen the highest turnover of Secretaries of State of any Department: the Rt Hon Oliver Dowden

MP is the ninth since May 2010

• 68% of respondents to DCMS's own survey reporting that their businesses' ability to trade as a viable entity is under threat

Changes to the planning system will save theatres, concert halls and live music performance venues for future generations, Communities Secretary Robert Jenrick has announced today (12 July 2020).

With the changes taking effect next week, cultural institutions across England will be saved from being redeveloped or demolished.

These buildings cannot be easily replaced and are an intrinsic part of our cultural heritage, which is why the government is clear that temporary social distancing restrictions should not be an excuse for them to be permanently lost.

Councils will now need to take the temporary impact of coronavirus into account when considering permission for change of use, redevelopment or demolition of a theatre, concert hall or live music performance venue.

This move, alongside the £1.57 billion investment to protect Britain’s cultural, arts and heritage sector, provides extra security to businesses as they make plans to re-open their premises when is it safe to do so, and in the meantime continue to share their talent and passion for the arts outdoors and virtually.

Housing and Communities Secretary, Rt Hon Robert Jenrick MP said:

Our theatres, concert halls and live music performance venues are the envy of the world and are central to our cultural heritage.

That’s why we’re investing £1.57 billion to protect Britain’s cultural, arts and heritage institutions, as well as ensuring these buildings aren’t destroyed.

It is vital they are properly protected by the planning system for both people today to enjoy and future generations.

Jon Morgan, Director of the Theatres Trust, said:

We welcome the news of revisions to the planning system, which reinforce and increase protections for our treasured theatres and provide reassurance for the communities that use and value them.

The COVID-19 lockdown has rendered otherwise vibrant theatres vulnerable to permanent closure and we have already seen a number of theatres fall vacant due to the operator going into liquidation.

These measures will help ensure these vital community assets are protected during the current crisis and can be revived to serve their local communities once again.

•       Cultural and heritage organisations to be protected with £1.57 billion support package 

•       Future of Britain’s museums, galleries, theatres, independent cinemas, heritage sites and music venues will be protected with emergency grants and loans 

•       Funding will also be provided to restart construction work at cultural and heritage sites paused as a result of the pandemic

Britain’s globally renowned arts, culture and heritage industries will receive a world-leading £1.57 billion rescue package to help weather the impact of coronavirus, the government announced today.

Thousands of organisations across a range of sectors including the performing arts and theatres, heritage, historic palaces, museums, galleries, live music and independent cinema will be able to access emergency grants and loans.

The money, which represents the biggest ever one-off investment in UK culture, will provide a lifeline to vital cultural and heritage organisations across the country hit hard by the pandemic. It will help them stay afloat while their doors are closed. Funding to restart paused projects will also help support employment, including freelancers working in these sectors. 

Many of Britain’s cultural and heritage institutions have already received unprecedented financial assistance to see them through the pandemic including loans, business rate holidays and participation in the coronavirus job retention scheme. More than 350,000 people in the recreation and leisure sector have been furloughed since the pandemic began.

This new package will be available across the country and ensure the future of these multi billion-pound industries are secured. 

Prime Minister Boris Johnson said:

“From iconic theatre and musicals, mesmerising exhibitions at our world-class galleries to gigs performed in local basement venues, the UK’s cultural industry is the beating heart of this country.

“This money will help safeguard the sector for future generations, ensuring arts groups and venues across the UK can stay afloat and support their staff whilst their doors remain closed and curtains remain down.”

Oliver Dowden Culture Secretary said

“Our arts and culture are the soul of our nation. They make our country great and are the lynchpin of our world-beating and fast growing creative industries.

“I understand the grave challenges the arts face and we must protect and preserve all we can for future generations. Today we are announcing a huge support package of immediate funding to tackle the funding crisis they face. I said we would not let the arts down, and this massive investment shows our level of commitment.”

Rishi Sunak, Chancellor of the Exchequer said:

“Our world-renowned galleries, museums, heritage sites, music venues and independent cinemas are not only critical to keeping our economy thriving, employing more than 700,000 people, they’re the lifeblood of British culture.

“That’s why we’re giving them the vital cash they need to safeguard their survival, helping to protect jobs and ensuring that they can continue to provide the sights and sounds that Britain is famous for.”

The package announced today includes funding for national cultural institutions in England and investment in cultural and heritage sites to restart construction work paused as a result of the pandemic. This will be a big step forward to help rebuild our cultural infrastructure.

This unprecedented package includes:

£1.15 billion support pot for cultural organisations in England delivered through a mix of grants and loans. This will be made up of £270 million of repayable finance  and £880 million grants.

 £100 million of targeted support for the national cultural institutions in England and the English Heritage Trust.

 £120 million capital investment to restart construction on cultural infrastructure and for heritage construction projects in England which was paused due to the coronavirus pandemic.

The new funding will also mean an extra £188 million for the devolved administrations in Northern Ireland (£33 million), Scotland (£97 million) and Wales (£59 million).

Decisions on awards will be made working alongside expert independent figures from the sector including the Arts Council England and other specialist bodies such as Historic England, National Lottery Heritage Fund and the British Film Institute. 

Repayable finance will be issued on generous terms tailored for cultural institutions to ensure they are affordable. Further details will be set out when the scheme opens for applications in the coming weeks.

The snappily titled Health Protection (Coronavirus Restrictions) (No.2) (England) Regulations 2020 was laid before parliament yesterday. Read it here , especially the bit about outdoor gatherings with no restricted numbers as long as they're organised  by a business (or various other defined institutions) that has carried out a risk assessment.

http://www.legislation.gov.uk/uksi/2020/684/pdfs/uksi_20200684_en.pdf

• Ed Sheeran, The Rolling Stones, Dua Lipa, Sir Paul McCartney, Skepta, Rita Ora, Coldplay, Dame Shirley Bassey, Eric Clapton, Annie Lennox, Sam Smith, Sir Rod Stewart, Liam Gallagher, Florence + the Machine, George Ezra, Depeche Mode, Iron Maiden, Lewis Capaldi, Little Mix, amongst 1,500 artists and thousands of venues and crew calling for urgent
• New figures released today reveal massive economic impact of live
• £4.5bn live music sector warns of devastating impact on 210,000 jobs, as other businesses begin to re-open.

London, 2 July 2020. Stars from the UK’s live music sector, alongside thousands of venues, crew and industry figures, are today issuing an urgent plea for support from the UK Government during what would have been the UK’s world-famous festival season.

The appeal, made in a letter to the Secretary of State for Digital, Culture, Media and Sport, Oliver Dowden, is signed by 1,500 artists, many of whom were due to perform at festivals this summer, including Glastonbury, Leeds, Reading, Kendal Calling, Green Man, Latitude, All Points East, Parklife, TRNSMT, and hundreds more across the country. 560 venues and nearly 4,000 production crew vital to the success of the industry have also added their names.

The call to government comes as new research commissioned by the industry demonstrates the vital economic contribution of the live music sector. As well as supporting 210,000 jobs across the country, venues, concerts, festivals and production companies added £4.5bn to the economy in 2019.

But, because they’re unable to operate with any level of social distancing, concerts and festivals are unlikely to take place again in the UK until 2021 at the earliest. Many hundreds of redundancies have already been made, with the potential for tens of thousands to follow this year.

In the joint letter, the artists say: “UK live music has been one of the UK’s biggest social, cultural, and economic successes of the past decade. But, with no end to social distancing in sight or financial support from government yet agreed, the future for concerts and festivals and the hundreds of thousands of people who work in them looks bleak.

“Until these businesses can operate again, which is likely to be 2021 at the earliest, government support will be crucial to prevent mass insolvencies and the end of this world- leading industry.”

To coincide with the letter, hundreds of artists, venues, concerts, festivals, production companies and other people across the industry will today begin posting films and photos of their last live gig under the banner #LetTheMusicPlay. Fans will also be encouraged to post about the last gig they went to, all in a mass show of support for the UK’s world-leading live music industry during its shutdown.

By head of population, the UK is the second biggest live music market in the world. But, despite the global influence and economic importance of British live music, government support for the sector continues to lag behind other countries. The German government recently announced €150m in financial support for live music as part of a €50bn package of grants and loans for the cultural sector, and France has announced a further €50m to ‘build support plans’ for the live music industry.

Dua Lipa said: “It’s incredibly important for artists like myself to speak up and support the live music industry in the UK. From the very start playing live concerts up and down the country has been a cornerstone for my own career. I am proud to have had the chance to play through all the levels … small clubs, then theatres and ballrooms and into arenas, and of course festivals in between each touring cycle. But the possibility for other emerging British artists to take the same path is in danger if the industry doesn’t receive much needed government support in the interim period before all the various venues, festivals and promoters are ready and able to operate independently again.”

Liam Gallagher said: “Amazing gigs don’t happen without an amazing team behind the stage, but they’ll all be out of jobs unless we can get back out there doing what we love. I can’t wait to get back to playing for the fans. But in the meantime we need to look after the live industry. There are so many great people in it and we all need to support them until we can get back to playing live.”

Ben Lovett, Mumford & Sons and Venue Group, said: “I’ve dedicated my life to music, on and off the stage. I was a teenager when I started running a monthly new music night called Communion with a couple of friends that has evolved into one of the UK’s most established concert promotions businesses, independent record labels and publishing companies. I was barely 20 when we were cutting some of the early Mumford & Sons demos in my parents' attic and spending all of our spare energy in rehearsal rooms, and then cutting our teeth in venues throughout London. Now I’m a venue owner and operator of Omeara and Lafayette and watching our entire industry get decimated by this virus. Every day, literally, I hear of another friend in music losing their job, shutting up shop, switching careers. This pandemic has affected everyone, it has taken many lives and forever changed many more. Live entertainment has not been the headline, nor do I believe it should’ve been, at least until now. We really have to pay some attention to what our cultural landscape is going to look like on the other side of this and we’re hoping that #letthemusicplay will pull some of this into focus for a minute.”

Beverley Knight said: “Alongside my love of music and theatre is my love of Wolverhampton Wanderers. We now need to see the same energy and ambition that brought football back applied to live music and theatre because, if not, the impact on the industry is going to be devastating and some elements may never come back.”

Emily Eavis, Glastonbury organiser, said: "The UK's venues, festivals, performers and crew bring so much to this country's culture and economy, but they are now facing desperate financial challenges. If the government doesn't step up and support the British arts, we really could lose vital aspects of our culture forever.”

Phil Bowdery, Chairman of the Concert Promoters’ Association, said: “July would normally see the UK embarking on a world-famous summer of live music, but this year the lights are switched off and the microphones unplugged. Live music has sought to play its role in helping tackle Coronavirus, with many artists providing entertainment for people from their homes. But our shut down is likely to go on for much longer than most with many concerts and festivals unable to operate until 2021 at the earliest. Without rapid government support, the long-term impact will be devastating, with the loss of hundreds of thousands of highly-skilled jobs and billions of pounds from the UK economy.”

Data shows that the biggest economic impact from the live music shutdown is likely to be felt regionally, where concerts and festivals have been proven to bring huge benefits.

• One sell-out full capacity night of live music in Birmingham would generate £3m for the local
• The Great Escape festival in Brighton generates £16 million worth of business for artists, managers, songwriters, producers and production
• TRNSMT festival in Glasgow generates a local economic impact of £10
• Glastonbury Festival generates more than £100m a year for local businesses and charities.
• Belladrum Festival in Inverness, Scotland’s biggest camping festival, contributes £5million each year to local economy.

• Ed Sheeran’s four shows at Chantry Park in 2019 boosted the Ipswich economy by £9m.

Because of the complex challenges the live music industry faces, it will be one of the last sectors to reopen. As other parts of the economy start to reopen, the live music industry is calling on the Government to provide vital sector-specific support, including:

1. A clear, conditional timeline for reopening venues without social
2. A comprehensive business and employment support package and access to finance.
3. Full VAT exemption on ticket

The business and employment support package should include: a government-backed insurance scheme to allow shows to go ahead; an extension of the furlough scheme and help for the self-employed to prevent mass redundancies; rent breaks for venues to allow them to reopen; an extension of business rate relief to the entire live music supply chain to protect our ecosystem; rolling-over fees for single premises event licences for festivals; and financial support for lost box office income.

#LightItInRed

#LightItInRed is a UK based direct action lighting protest that is scheduled to take place on the night of Monday 6^th July 2020 … to draw attention to the critical condition of the UK live event and entertainment industry and its need for special government support to see it through to re-starting.

The dynamic “creative sector” which includes live entertainment, music, events, theatre, performance, and the arts generates around £110 billion annually (based on DCMS figures) for the UK economy … and is known for its invention, passion, and flair.

Currently, unlike other industries, there is no set date for live events, shows, festivals and performances, etc. to restart after the Covid-19 shut down.

The #LightItInRed action was inspired by #NightofLight in Germany on 22^nd June, which saw over 9000 buildings, monuments, structures, towers, landmarks, castles, offices, houses, spaces and places illuminated in “Emergency Red” to raise awareness and grab the attention of the public and the government.

#LightItInRed initiators, Steven Haynes from Clearsound Productions and Phillip Berryman from The Backstage Theatre Jobs Forum, state that the target for this action is to get “1000 buildings and monuments, etc.” lit up in red all around the UK.

This is a shout out to the lighting, laser, AV, and video community - companies and individuals - who are involved in events, theatre, performance, and live production! Anyone with access to a light source who can register to be part of this highly significant action!

Check www.lightitinred.co.uk for all the relevant details and how to register locations that will be illuminated.

The social links are:

Facebook: @lightitinred / Twitter: @LightItInRed / Instagram: @light_it_in_red

Entertainment technology and production touches all genres of performance involving a vast infrastructure and some highly talented and skilled individuals - artists, agents, promoters, venues, studios, technical production companies, technicians, site & venue managers, creatives and all types of designers, equipment programmers, operators and more, who are working with complete dedication across multiple disciplines – lighting, audio, video, rigging, SFX, staging, engineering, structures, scenic, etc.

Right now, venues are shuttered, companies and suppliers are closed with employees furloughed or laid off, tens of thousands of self-employed freelancers have not been eligible for any of the government Covid-19 related financial assistance schemes.

This thriving, vibrant, innovative industry that brings so much enjoyment and so many incredible memories to so many … needs more support to survive and re-energise.

The government  introduced the Corporate Insolvency and Governance Bill in Parliament in May, which will put in place a series of measures to amend insolvency and company law to support business to address the challenges resulting from the impact of coronavirus (COVID-19). The bill received royal assent on 25 June and is now an Act.

The Bill consists of 6 insolvency measures and 2 corporate governance measures.

The insolvency measures will provide vital support to businesses to help them through this period of instability.

Business Secretary Alok Sharma said:

This is a particularly challenging time for businesses right across the UK, and we are doing all we can to support them through this period.

Our proposals have been widely welcomed by business groups. The Bill will help companies that were trading successfully before the COVID-19 emergency to protect jobs and put them in the best possible position to bounce back.

The corporate governance measures will introduce temporary easements and flexibility to businesses where they are coping with reduced resources and restrictions.

This Bill will do this through:

• introducing a new moratorium to give companies breathing space from their creditors while they seek a rescue
• prohibit termination clauses that engage on insolvency, preventing suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process
• introducing a new restructuring plan that will bind creditors to it
• enabling the insolvency regime to flex to meet the demands of the emergency
• temporarily removing the threat of personal liability for wrongful trading from directors who try to keep their companies afloat through the emergency
• temporarily prohibiting creditors from filing statutory demands and winding up petitions for coronavirus related debts
• temporarily easing burdens on businesses by enabling them to hold closed Annual General Meetings (AGMs), conduct business and communicate with members electronically, and by extending filing deadlines
• allowing for the temporary measures to be retrospective so as to be as effective as possible

Jonathan Geldart, Director General of the IoD said:

Directors have significant legal obligations, and this Bill provides some reassurance that those who act responsibly won’t be caught out by the insolvency system. It’s crucial that directors are able to sustain their organisations and the people who rely on them during these difficult times.

FSB National Chair Mike Cherry said:

The incoming Corporate Insolvency and Governance Bill will be an important step to helping many small firms during this crisis.

The measures will immediately go some way to mitigate some of the problems small businesses are facing, such as the relaxation of wrongful trading rules which will allow directors of struggling companies to continue trading without fear of legal repercussions. The company moratorium, filing extensions and voiding of statutory demands are particularly important for smaller businesses, it is important that these provisions continue for as long as is necessary.

The Department for Culture Media and Sport has released the first guidance published in partnership with industry associaiton with a focus on working safely in relation to Covid 19. Especially useful currently is the drive in cinemas guidance.

CLICK HERE and check back for more as it is made available.