The Federation of Small Businesses (FSB) has issued another plea to the government for additional financial support for small firms to help them survive the gap until restrictions are lifted.

The lifting of Covid-19 restrictions for businesses was originally due to happen on 21st June, but concerns over a new variant of the virus led to it being pushed back to 19th July. However, most of the existing support measures, including the suspension of business rates payments and the VAT deferrals, are not being extended until that date.

This has led the FSB to state that many of the small businesses it represents – most notably, night-time hospitality ones – will face difficulties in surviving the gap between the end of financial support and the end of restrictions.

It argues that most of them budgeted for a 21st June reopening. Accountants in Goole or elsewhere may be able to suggest emergency measures for bridging this gap period.

Under the existing plans, the furlough scheme will go on, albeit in reduced form, but companies in the hospitality sector and others are required to resume paying business rates and VAT again.

Mike Cherry from the FSB told BBC News that:

“With ‘freedom day’ delayed and business support now peeling back, we are worried for those who suddenly face new costs, but are unable to raise revenue to pay for them. Some may now cease trading and let staff go.”

Cherry went on to add that full support measures should remain in place until then.