Mineral Products sector seeking ‘cash bridge’ support and clarity from Government
The Mineral Products Association yesterday wrote to the Chancellor following the initial meeting of its newly formed Taskforce.
MPA letter to the Chancellor.
Nigel Jackson has again written to the Chancellor of the Exchequer calling for further measures to support MPA members. Welcoming many of the steps outlined by the Chancellor, he focused on extending the deferment of VAT to Employers National Insurance, Corporation Tax and Business Rates. These are simple measures the Chancellor could take to reduce cash outflow from businesses. In the letter, he wrote:
“What business needs now are fast and simple solutions that enable them to keep cash in their businesses and their employees in their jobs.
“The deferment of VAT is a simple and effective measure and welcome. Further concessions of this nature would increase the resilience of companies and I once again urge you to take further steps by deferring employers’ National Insurance contributions, Corporation Tax and Business Rates over the next 3 months. This would be the best way to retain jobs and sustain companies in these exceptional times whilst we all evaluate the potential impact of the virus on enterprise.
As the largest supplier of any material in the UK economy, at 1 million tonnes per day of essential mineral products, the impacts of Covid 19 will be all the greater on an industry where the fixed costs are very high. Once the recovery starts the pent-up demand will be immense and unless we have protected the capacity and capability of the sector it will inhibit our return to healthy economic growth.”