Federation of Small Businesses calls for more help for SMEs as financial support winds down
The Federation of Small Businesses (FSB) calls on the Government to offer more economic support to small and medium enterprises (SMEs) as coronavirus-related limits continue and fewer financial packages are being handed out.
For example, the Government delayed the lifting of restrictions from 21 June until 19 July. But, it did not extend several measures aimed at helping businesses, such as deferred VAT payments and business rates exemptions that are due to end on 1 July still.
The FSB is anxious there will be a lack of financial support for companies which will only add pressure to their struggles.
Many venues, such as nightclubs and other night-time hospitality businesses had budgeted to trade from 21 June, which is no longer an option with the extended restrictions. Therefore, several companies are now continuing to struggle financially.
However, a spokesperson for the Government assured that “substantial” support would remain.
The furlough scheme will continue, but new changes from 1 July mean increased payments for businesses – the number of wage costs employers need to contribute for furloughed staff through national insurance and pension will rise from five per cent to 14 per cent.
Additionally, repayments on more than £45 billion in emergency Bounce Back Loans will soon be due.
To find out what coronavirus-related support is still available to help your business through this challenging time, contact our experts today.