Call for 'second wave' of support for small businesses amid lockdown woes

National chairman of the Federation of Small Businesses Mike Cherry said that urgent clarity is needed on how small firms and the self-employed will be supported by the Government.

He said: “Small businesses have followed the guidance, protected the health of their staff and customers, and invested in making their business Covid-safe.

“But the new restrictions will inevitably leave many small firms facing the bleakest winter they have ever seen and the second deep recession in 12 months.

"Urgent clarity is needed on how small businesses and the self-employed will be supported through this.

“For the first wave lockdown, we encouraged the Government to create financial support schemes for businesses based on three principles – to be as generous as possible, to as many as possible, and as swift as possible.

“We will now need the government to match this scale of ambition, incorporating lessons learned from earlier this year – a second wave support package to offset the impact of a second wave of restrictions.

"This will help the country’s small businesses to make it through to the spring and be able to drive the recovery.”

The chairman has called for a new set of small business grants worth at least £10,000, which includes grants for supply chains of the hardest hit sectors.

He said: “Alongside greater use of grants, there should be an extension of emergency loans – including both the application period and allowing a second application for those who originally applied for a lower amount in Bounce Back Loans than they were entitled to.

“Small firms have been drained of resource at a time when many will also want to take steps to adapt to the changing nature of our relationship with the EU.

" Adapting to the new arrangements will incur costs for many, therefore the government should also commit to introducing transition vouchers worth £3,000 each to help small firms cover these costs.”