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Labour urges Sunak to extend Covid support for businesses

Shadow business minister says firms face £50bn blow if support is withdrawn in April
Labour has called on the chancellor to extend the government’s emergency support for hard-pressed companies after warning that businesses face a £50bn hit in April when financial help is withdrawn.
With the budget less than a month away, the opposition called on Rishi Sunak to announce a six-month extension of the business rates holiday for retail, hospitality and leisure and to continue the temporary cut in VAT to 5% for the same three sectors of the economy.
Labour, which has already called for an indefinite extension of the furlough, said economic support had failed to keep pace with the tougher social distancing regulations introduced to curb the second wave of the Covid-19 pandemic.
The party added that an estimated 1 million food and accommodation businesses had cash reserves that would last for less than three months, and that many were expecting to be closed in April and beyond, with a loss of trade into the summer.
Lucy Powell, Labour’s shadow business and consumers minister, said: “The government’s failure to ensure that economic support is adequate and goes hand in hand with public health measures has meant we’ve seen the worst recession of any major economy and the worst growth.
“The £50bn business bombshell firms face must be defused before it blows a hole in our economy. We need a smarter furlough scheme, and better support for businesses, to secure jobs and get Britain on the road to recovery.”
Labour said that the extra costs facing businesses from April included:
£34bn in VAT deferrals affecting over a quarter of businesses (26% or 600,000 firms).
£9.6bn in business rate payments for 2021-22 that high-street firms will be liable for when the business rate holiday ends.
£3.3bn monthly support through the coronavirus job retention scheme.
Sunak is working on plans to support the economy as it emerges from lockdown. With restrictions expected to be eased slowly, the chancellor will defer long-term tax and spending decisions in his 3 March package and will further extend wage subsidies beyond the current end-of-April deadline.
source: Larry Elliott
Levant
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BENEFIT Sponsors BuildHer...
- April 23, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”
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