Urgent calls for support package for businesses and self-employed following lockdown easing delay
Following the announcement that the next stage of lockdown easing is to be delayed by a further four weeks until 19 July, there have been calls for urgent support to be put in place for those small businesses, self-employed and industry sectors which will be most affected.
The delay will be difficult for many small firms who had been hoping for the Stage Four unlocking to take place on 21 June.
Federation of Small Businesses (FSB) National Chair Mike Cherry said: "So many small businesses will have been waiting for the 21 June with bated breath as their chance to be fully operative without most of the restrictions and closures that have dogged us for much of the past 15 months.
"But despite a successful vaccine programme and all the best efforts from small firms, they will be bitterly disappointed to find they face at least another month of restrictions.
"For many people, it probably feels like life has been getting back to normal. But take a moment to remember that some small businesses, for example nightclubs, have remained closed throughout the entirety of the pandemic. They have gone 15 months without income, all the while doing their best to support their staff, and they have now had their hopes of reopening on 21 June dashed. These sectors, and their supply chains, need ambitious and targeted support.
"It is fully understandable that as this pandemic evolves, the goalposts too will move, but many small firms who have been hanging onto the edge will be left wondering if they can survive further periods of restrictions without additional support. Previous local lockdowns were confusing and did not work, so we are glad to see that we are not facing a return to these today.
"The 19 July must be the final date for when these restrictions will be lifted, it's crucial that we also understand the impact that these delays have on livelihoods as well as mental health.
"The decision to ease restrictions for weddings will come as a welcome announcement for those involved, especially suppliers, venues and organisers who have seen the sector decimated over the past 15 months.
"But in all our talks with the Government during this crisis, we've made it clear that support must be proportionate to the restrictions in place. These business support measures have been critical to saving thousands of businesses and jobs. But we now must push for more, at a time when so many small firms need that helping hand to survive.
"So, for others who remain restricted about how they can operate, these firms need urgent support. The Business Rates 100 per cent relief for the retail, hospitality and leisure sector, which is due to end on the 30 June should be extended beyond this next set of restrictions.
"Employer contribution changes that are due to take hold on the 1 July should be delayed until all restrictions have eased, thereby minimising the immense financial burden that small firms are facing.
"Many who have been unable to open are now faced with paying back their Bounce Back Loans. Government should consider writing off spent COVID loans for the most restricted firms.
"Small firms need support now, they understand the need to take a cautious approach out of lockdown, but not at the sacrifice of businesses, jobs and livelihoods. So, the Government must act to prevent further economic casualties." The Association of Independent Professionals and the Self-Employed (IPSE) have also stressed their concerns over the Prime Minister's announcement, calling the decision "another sharp blow" to freelancer-dominated industries such as events, the night-time economy and the creative sector.
IPSE is calling for a sectoral support stimulus package to be urgently created that will cover the "hiring business to the freelancers and self-employed workers in their supply chain".
Andy Chamberlain, Director of Policy at IPSE, said: “The delay to the easing of lockdown restrictions is another sharp blow to freelancer-dominated industries such as events, the night-time economy and the creative sector. These are industries where you can find many of the million freelancers who are still excluded from support and the delay will make matters even worse for them.
“These sectors have been pummelled by the financial damage of the pandemic, and many freelancers working in these areas are running on fumes and taking on debt just to get by. Although there may be a clear case for delaying the easing of restrictions, government must match this with further and more targeted support to these devastated sectors and the freelancers who work in them.
“We are urging government to introduce a sectoral support and stimulus package to protect the most affected sectors: to support them through the continuing restrictions and also enable them to get back on their feet quickly when the economy re-opens. These are some of the biggest sectors for freelancers, and some of the most significant for the UK economy: they must not be an afterthought in the government’s roadmap.”