Let me start by saying that one of the toughest jobs in the world right now must be that of our Prime Minister, along with the senior team around him. They are trying to balance the needs of almost every sector of business and society, not only in terms of our physical health, but our social and economic health too.
However, we all look at the actions that are being taken through our own particular prism, and especially how the virus is affecting us, our families and our businesses. The government has made money and resources available to tackle the impact of the virus, but is it effective, and will it work? The answer to those questions will only be known in a few weeks or month’s time.

In our little world of apprenticeships, I am becoming increasingly worried for the viability of many of our independent training providers (ITPs). Perhaps controversially, I am not that concerned over the future of any of our colleges. The Government will not allow a college to go out of existence just because it runs out of money, due to the impact of the corona virus. However, I know that ITPs will go out of business. Some I believe within two or three weeks. Employers are not only stopping all new starts on apprenticeships (which I can completely understand), but some large employers are actively removing learners from apprenticeship programmes, and through the online system are even telling providers that they have done so after the event. The impact of this on ITPs will be devasting.

Every sector of the economy is demanding support and help from the Government, and it is true to say that they cannot respond to all of these demands. However, rather than making loans available, that will impact on a business for the long-term, why not help the critical cash-flow issues that our ITPs will face and do something quick and instant? Give SME’s a complete tax holiday. No VAT, PAYE, NI contributions or Corporation Tax payments for three months. Yes, the payments would need to be ‘caught-up’ at some point in the future, but unless there is instant and quick action, there will be no future for many of our ITPs.

Is this scaremongering? All I will say is that based on the four conversations that I have had this week, unless something happens in the next two weeks, two of the four providers will be forced to close.

So please Chancellor, do something that will help all SMEs keep going, until hopefully, we are all much clearer as to when we can expect some form of normality to return.

Tony Allen
18.03.19