SMEs need further support for second wave

With the second wave of restrictions coming into force for England this week, smaller sized businesses are calling for additional support during the next lockdown.

Responding to the Prime Minister’s announcement of significant new Covid-19 restrictions in England, National Chairman of the Federation of Small Businesses (FSB) Mike Cherry said, “Small businesses have followed the guidance, protected the health of their staff and customers, and invested in making their business COVID-safe.

“For the first wave lockdown, FSB encouraged the Government to create financial support schemes for businesses based on three principles – to be as generous as possible, to as many as possible, and as swift as possible.

“We will now need the government to match this scale of ambition, incorporating lessons learned from earlier this year – a second wave support package to offset the impact of a second wave of restrictions. This will help the country’s small businesses to make it through to the spring and be able to drive the recovery.

“This should include a new set of small business grants worth at least £10,000 each – including for those in the supply chains of the hardest hit sectors.”

Cherry added, “Alongside greater use of grants, there should be an extension of emergency loans – including both the application period and allowing a second application for those who originally applied for a lower amount in Bounce Back Loans than they were entitled to.

“On the extension of the Coronavirus Job Retention Scheme (CJRS), there must be swift confirmation that the 80 per cent of salaries for those furloughed will be publicly funded, and whether the employer will continue to cover the cost of employer National Insurance Contributions and auto enrolment pensions. In addition, emergency measures are required to make it less expensive for those who can do to hire people.

“There should also be an increase to the self-employment support grant, and its scope should be widened to include those left out of previous support packages, such as the newly self-employed and company directors.

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