The Federation of Small Businesses (FSB) is stating that one out of every five of the UK’s smaller companies have received absolutely no emergency funding to help them survive the COVID-19 crisis.
This adds up to approximately 1 million sole traders and small firms, from the 5.9 million that there are in total. The FSB claims that the main reason why these firms have been denied emergency financial help is because they do not fall under the hospitality, leisure or retail sectors. These three industries have been particularly badly hit by COVID-19 and have thus been prioritised for support by the government.
Among the measures that have been introduced for companies in those sectors are temporary reprieves from business rates. They have also received grants worth tens of thousands, while those not classified as part of these sectors – for example, suppliers – have been given around 10% of that total.
Furthermore, 22% of the smaller firms that the FSB spoke to said that they had not been given any financial help whatsoever. The federation polled over 1,000 small firms and sole traders for this research.
Those in that position should speak to a business accountant in Doncaster or whatever region they live in, as they may be able to help with both financial planning and tax relief.
Mike Cherry from the FSB pointed out that firms selling to other companies were greater in number than firms that sell their products to the general public, and that they have been denied crucial help.