Firms which were “crippled” by Tier four are demanding extra authorities assist

Originally written by Timothy Adler about small business

UPDATED: According to the Federation of Small Businesses, over a million business premises are now closed across the UK.

According to the FSB, many of these small companies “run out of cash” because they have invested heavily in securing Covid.

Meanwhile, UK Hospitality has announced that the sector has been “effectively closed” from today after yesterday’s Tier 4 restrictions were extended to much of the rest of the UK, which means take-out pubs, cafes and restaurants.

Three quarters of the UK’s population currently live according to Tier 4 rules, which also require non-essential retailers such as clothing and homeware stores, gyms, and hair and beauty salons to close.

> See also: Which small businesses can stay open in Tier 4 Lockdown?

Kate Nicholls, UK Hospitality’s executive director, has called for new grants and the extension of reduced VAT and vacation fees for businesses after March if the government is to avoid “hundreds and thousands of job losses”.

On Tuesday, FSB Chairman Mike Cherry wrote to Rishi Sunak proposing a five-point package that included converting emergency Covid debt into stocks for small business employees, another round of grants, and a German reimbursement system for lost income.

> See also: Small businesses are calling for a multi-billion dollar Covid-19 support package

Craig Beaumont, the FSB’s chief foreign affairs officer, said the “tightening of restrictions must lead to increased support for those affected”.

Helen Dickinson, executive director of the British Retail Consortium, has since called for targeted financial support for non-essential retailers as well as the extension of vacation rates for business rates.

According to real estate consultant Altus Group, business rates are set to resume from April, which will cost powerful companies £ 12.8 billion in 2021.

Meanwhile, all non-essential stores in Wales closed on Boxing Day, in line with England’s Tier 4 restrictions, while Scotland and Northern Ireland received their own three-week and six-week bans from December 26th, respectively.

The government has extended the vacation program to the end of April for assistance available. The vacation covers up to 80 percent of the staff wages for hours not worked.

Companies that are forced to close can also apply for grants of up to £ 3,000 per month. However, local authorities are still working to hand out grants from the November national lockdown, let alone prepare for another round of handout distribution.

further reading

Landlords blocked evictions from small businesses for another three months

Companies that have been “crippled” by Tier 4 are demanding more government aid

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