Lancashire-based business group calls for 'ambitious' Budget to help small firm survive

The Lancashire-based Federation of Small Businesses is encouraging the Chancellor to use next month’s Spring Budget to address gaps in the business support landscape as its latest research highlights the shortcomings of a sector-based approach.
Watch more of our videos on Shots! 
and live on Freeview channel 276
Visit Shots! now

The organisation is calling for call for “most ambitious Budget in modern history” as it says one in five small businesses have been overlooked by existing support

New FSB analysis of government data showed that more than half (56 per cent) of workers furloughed to date were employed outside the retail, leisure and hospitality sectors, but firms that do not neatly fit the definition for these industries – including suppliers to hotels, restaurants and event venues – were only entitled to 10 per cent of support grants.

Hide Ad
Hide Ad

The survey of more than 1,000 small business owners found that 22 per cent had received no financial help at all from the UK Government since the start of the Covid pandemic.

A separate study by the group showed that only 51 per cent got a cash grant and just five per cent got any discretionary help from their local authority.

The FSB research also reveals that the burden placed on small firms by business rates is growing, with one in three (34 per cent) seeing their bill rise over the past five years and one in ten saying their bill “has increased by a lot”. Fewer than one in ten (eight per cent) say their bill has reduced in size.

FSB national chairman Mike Cherry said: “While the Government rightly moved at pace last Spring to deploy business support, we can now see the shortcomings of a sector and property-based approach. Small firms which sell to other businesses outnumber those which sell to consumers three to one – thousands don’t have a commercial premises or neatly fit the definitions of retail, leisure and hospitality. Too many have been left out of support measures as a result.

Hide Ad
Hide Ad

“We urgently need to see support measures extended to the hidden heroes within our supply chains who tirelessly drive our economy forward. It’s not too late to bring those left out into the fold, but the Chancellor needs to act fast.

“Equally, the worsening of our late payment crisis will impact small firms for many months to come – a lot firms taking on work now will not be paid until the summer, if at all. The Chancellor should use this Budget as an opportunity to show real leadership on this front.

“Last year we suffered the biggest GDP drop in modern history. We now need the most ambitious, pro-business Budget in modern history to reverse the damage.”