News & Insights
Small businesses are asking the government for more support as a series of measures are set to expire at the end of the month.
The business rates holiday for those in the hospitality, retail and tourism industry which has exempted them from paying the tax during the pandemic will expire along with the VAT payment deferral on 30th June.
The Coronavirus Job Retention Scheme is also set to change with businesses being asked to contribute 10% of the government’s 80% towards furloughed wages from July.
It is feared small businesses will struggle during an 18-day period in which these schemes are no longer available and restrictions on social distancing are still in place until 19th July.
The government had previously extended the last stage of easing lockdown by four weeks due to an increase of Covid cases lined to the Delta variant.
The Federation of Small Businesses (FSB) lobby group for small firms says the government should look to continue their support until restrictions are fully relaxed next month.
Chairman of the organisation, Mike Cherry, is concerned that businesses have just survived during the pandemic but have little cash reserves remaining:
“With ‘Freedom Day’ delayed and business support now peeling back, we are worried for those who suddenly face new costs but are unable to raise revenue to pay for them. Business support should be extended such as full furlough and full business rates relief.”