Responding to news that the Government will issue £5billion of new grants to businesses in England, FSB National Chair Mike Cherry said:
“It is an extremely challenging time for small businesses who have fought tooth and nail to stay afloat in the last year, so we are pleased that our calls for further cash grant support will be heeded.
“This money – £5billion for 700,000 businesses - is a significant cash injection for non-essential retail, pubs, bars, restaurants, gyms, hairdressers and beauty salons. It will provide a much-needed lifeline, offering firms some reassurance as we look to put lockdowns behind us and focus on a vaccine-fuelled recovery.
“The Government’s announcement also contains £425million for suppliers and others that have lost trade. Healthy supply chains are crucial to the economy, but many, particularly those in the event and hospitality sectors, have collapsed during the crisis. That is why it’s disappointing that the amount of discretionary grant funding provided amounts to only five per cent of the total, as this will make it difficult for Local Authorities to reach many of those firms in the supply chain.
“Over half of those on furlough are outside of retail, leisure and hospitality, so the amount of ARG funding may need to increase to match the real pain in the economy.
“Councils must also prioritise issuing their grants. Government figures show that only 13 per cent of existing funds given to them by the Treasury in mid-November had reached businesses by mid-January. They should be in a big race to stop supply chain businesses from going bust and have no excuse for any delays. They must increase the speed at which they get the money they do have out the door and into businesses’ bank accounts as we look to the future.
“We hope this announcement will be followed up at Budget by further good news for those that have been excluded from income support throughout this crisis. We have presented fully worked-up policy solutions to Government, alongside others. Ministers now have the chance to choose which of these to go for.”
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As the UK’s largest business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed.
FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.