Government must provide economic support alongside Covid restrictions

The Federation of Small Businesses is urging the government to not forget about the UK’s SMEs as further Covid restrictions are potentially looming.

The FSB has released a ten-point plan of options for economic support that Ministers should urgently consider, including necessary steps to support sectors such as hospitality which are already bearing the brunt of lost trade.

Here’s the list of proposed options:

• Increase the 21/22 66% business rates relief for eligible retail and hospitality businesses to 100%.
• Urgently release the £1.5bn Business Rates Relief Fund to help supply chains.
• Reinstate the Covid SSP (Statutory Sick Pay) rebate for all SME employers.
• Re-introduce the Jobs Retention Bonus.
• Reduce employer national insurance.
• Reduce VAT in tourism and hospitality.
• Introduce a ventilation grant scheme to assist small businesses in making their premises Covid-secure for the long term.

FSB National Chairman Mike Cherry, said, “It is incumbent on Ministers to consider an Economic Plan at the same time as it publicly debates further health restrictions.

“At the very least, government should already be reducing the fixed tax burden levelled on businesses when it is actively attempting to reduce social contacts – if more onerous measures are being considered, then it is essential to consider more comprehensive support for businesses and jobs at the same time, such as re-introducing the Jobs Retention Bonus.

“In hospitality, we’re hearing of dire examples from our members of cancellations and no-shows on a vast scale, stock having to be thrown away, and staff hours reduced. This, in turn, is hammering firms in the supply chains of these businesses.

“Failure to introduce business support to match the scale of public health restrictions will be damaging to the economy, jobs and communities.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.