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Gloucestershire Business News

Test and tracing needed to increase confidence

The Federation of Small Businesses has again called on the Government to keep supporting its members as they bid to recover from the coronavirus pandemic.

And its chairman Mike Cherry warned that a "world-beating test-and-trace system" is needed to spark the economy back into full life.

Latest government figures show 9.6 million jobs have been furloughed through the Job Retention Scheme with 2.7 million claims have been made through the Self-Employment Income Support Scheme.

Just under 1.4 million application have been made for a bounce back loan with more than 1.1 million facilities approved.

And around 120,000 applications have been made for under the Coronavirus Business Interruption Loan scheme with under 60,000 approved.

Mr Cherry said: "These new figures underscore the scale of the damage done to the small business and self-employed community by the coronavirus pandemic and the much-needed efforts made to alleviate that damage.

"What we thought would be a gradual, linear unlocking of the economy now looks to be anything but.

"With that being the case, these vital support mechanisms need to be kept under close and constant review to ensure they're effectively helping the 5.8 million small firms that make-up 99% of our business community."

He said nine out of 10 people who returned to the workplace after the financial crash were self-employed or part of a small business.

"Many were striking out on their own for the first time, so support for new businesses over the months ahead - especially through the Start-up Loans Programme and New Enterprise Allowance - will be integral to recovery."

And he stressed that firms and staff need confidence in the infrastructure to tackle the coronavirus.

"We were promised a world-beating test-and-trace system, and such a system is integral to getting businesses firing on all cylinders again," he said.

"While most have benefitted from direct government support, many have not. Thousands of directors and newly self-employed people have been left with no help for months now.

"The Government needs to think carefully about how it will help those who have been left behind."

He continued: "Bounce back loans have provided critical cash injections for huge swathes of the small business community.

"Firms need a guarantee that they won't have to start making repayments until they're making a profit.

"Such a pledge would give them the confidence to invest, recruit and expand today rather than hoard cash for fear of what's coming down the line."

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