History will record that the events of last week were some of the most tumultuous this country has known. It is too soon for most of us to properly digest and come to terms with what the outcomes will be. The level of uncertainty that now exists is hugely unsettling for most people.

One thing that is clear is that we were unprepared for the scale of this pandemic and that many lives will be lost and livelihoods destroyed as a result.

Government is clearly – and valiantly – doing its best in the face of almost insurmountable odds but in a number of areas its actions have already fallen short of what is required, such as in support for the self-employed. Although laid off employees will get 80% of their income irrespective of their other circumstances - eg their savings -  the self-employed will get about £5,000 per annum at most, and then only if they have savings of less than £16,000. The contrast between the two situations is utterly incomprehensible, most especially when it has been put in place by a government that has been celebrating the rise in self-employment in this country, where more than one and five people now have this status.

This must be addressed as a matter of urgency.

Similarly and somewhat bizarrely, the only people to whom payment will be guaranteed are all those who are laid off by their employer and told not to work. Now it is, of course, vital that these people get support, but this is completely perverse. Many companies are seeing a reduction in activity rather than none at all and could still use the services of people who might otherwise be laid off, and who will now be paid, but they will not be allowed to make use of them to keep essential parts of their business or service going even though that may be vital if there are to be jobs to return to in due course. 

And the large number of companies that will keep their staff working but on reduced hours, and companies that need to keep essential services going (including their payroll operations to ensure that other staff can be paid) cannot claim for the costs of keeping those essential staff on board to ensure that there will be an operation for people to return to when lockdown is over.

However hard you tried you could not create a more perverse situation than this if your aim is to preserve the supply side of the economy.

There are numerous other flaws in the measures announced last week particularly in the loan scheme – the digital and challenger banks such as Tide and Starling have almost all been excluded  and the high street banks just no longer have the expertise or resources to lend to the small business sector. Don’t expect much of the £330bn of loans – most of which will go through the purchase of commercial paper from large companies – to actually get into the hands of small businesses.

Do not for a moment think that I am being negative. Measures of support are essential, but they must be the right ones, directed at the right people and delivered in a short time frame. The government’s strategic advisory group of experts (SAGE in Whitehall speak) needs feedback about what will and won’t work.

The next phase of support will need to come from local communities; I am pleased that my local parish council has set up a support scheme. My modest contribution will be to help people confused by which of the numerous measures announced so far (eg most of us!) they may be able to access, help with budgeting and conserving cash and contacting HMRC over tax bills.

I have also been receiving numerous requests for information, clarification and advice from you and my other subscribers. So far I have been able to answer all of these individually and will continue to do so for all long as possible, so don’t hesitate to drop me an email if something is bothering you that I may be able to help with.

Stay safe.

Noel Guilford