Where a contract has ceased to be profitable due to increased costs ( arising from higher labour costs for instance) consideration should be given to providing for losses on an onerous contract.
For charities that are companies or CIOs insolvency law (Corporate Insolvency and Governance Act 2020) now extends the ‘utilities supply’ rules, so suppliers may have to continue providing services even if not being paid during a moratorium.
Contracting authorities have been encouraged by the Government to support suppliers, including charities. This should assist cash flow but may be more complex in payment by result arrangements and will require greater transparency by the contractor charity.
The Omicron Hospitality and Leisure Grant provided local councils with one-off grant funding to support hospitality, leisure and accommodation businesses, in recognition that the rise of the Omicron variant means that some businesses are likely to struggle.
Trading subsidiaries and, in some cases, charities are eligible. The aim of the Omicron Hospitality and Leisure Grant scheme is to support businesses:
- that offer in-person services
- where the main service and activity takes place in a fixed rate-paying premises
- in the hospitality, leisure and accommodation sectors
Applications are made through the local council’s website.
To provide continued support to the cultural sector, £30 million further funding has been made available through the Culture Recovery Fund to support organisations such as theatres, orchestras and museums through the winter to March 2022.
Grants form part of taxable income.
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