Government winter economy plan round-up cont:

Posted 28/09/2020
Written by Dawn Phillips
Category COVID-19 HELP

Chancellor outlines Winter Economy Plan - GOV.UK
[continued from the previous blog page]

Winter economy plan: round-up of key points

Extension of insolvency measures

Away from the Chancellor’s statement, the government also announced that measures to protect businesses from insolvency introduced in the Corporate Insolvency and Governance Act will be extended. 

The measures were due to expire on 30 September 2020 but in a statement, the Department for Business, Energy & Industrial Strategy confirmed that:

  • Companies will be able to hold virtual AGMs until at least 30 December 2020
  • Statutory demands and winding-up petitions will continue to be restricted until 31 December 2020
  • While termination clauses are still prohibited, stopping suppliers from ceasing their supply or asking for additional payments while a company is going through a rescue process, small suppliers will remain exempted from the obligation to supply until 30 March 2021 so they can protect their business if necessary.

Budget scrapped

In light of the need for the additional support measures outlined above, the Treasury has confirmed that a planned mid-November Budget has been shelved. However, there will be a November Autumn Statement and financial forecast.

The government is expected to revert to a March Budget and Finance Bill pattern, although this is yet to be officially confirmed.

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