Time to move on from BEAT

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 Friday, July 31, 2020 - 09:53

SPECIAL REPORT

by PETER TABERNER

The Gibraltar government has decided that its time to move on from the original Business Employee Assistance Terms (BEAT) measures implemented as Covid-19 infections began to escalate.

Businesses will now have to adapt to a new set of rules as the BEAT conditions expired at the end of the second economic quarter, now we have BEAT 2.0.

All of the new policies have been drawn up by the Covid Emergency Liaison and Advisory Committee (CELAC), which comprises of the government businesses groups and unions including the Gibraltar Chamber of Commerce and the Landlords’ Association.

Yet it remains to be seen if the new measures are exactly what businesses in Gibraltar are looking for.

In a recent address to parliament on 26 June, Chief Minister Fabian Picardo assured the private sector that the government stands with them, in order to stimulate the economy further.

Employers have been alerted that the new conditions put forward by the government means that staff salaries are no longer to be subsidized via the public purse.

The government is now offering a further 25% rate cut to the early repayment discount scheme across all sectors.

In total, the early repayment rate discount will now reach 75%, and will apply to all businesses that do not have rate arrears by 31 March this year.

As for rents, they will be discounted at different percentages. The government will apply a 50% reduction for the third quarter of this year to all of its commercial tenants.

While businesses that have enjoyed a 25% commercial rent cut in the second quarter of this year, will be more than enthused that the government is encouraging private landlords to allow the same rate reduction in the third quarter.

In a continuation of the original BEAT measures, if the landlords do not offer a concession on their rates, a tax worth three times more than a part of the rent will be forced onto a landlord by the government.

As from 1 July all businesses regardless of whether they received help or not through the BEAT payments, can now terminate employees contracts in the normal way if desired.

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31-07-2020 PANORAMAdailyGIBRALTAR