The Workers Union has called on Boris Johnson to do more to support small businesses.
Spokesman described the situation as ‘truly worrying’, as figures revealed by the Federation of Small Businesses (FSB) showed that 250,000 firms could be lost in 2021. The FSB calculated its projections based on a survey of 1,400 firms, 5 percent of which claimed they would close this year.
Mr Morgan said: ‘Small businesses are often the lifeblood of the communities they serve. When they close down they leave a huge black hole in the provision of regional services. Without them local people are left to scrap over a diminished pool of jobs. The government needs to come up with a policy that reflects the times that we live in, and offers hope for the business owners of today and the entrepreneurs of tomorrow.’
In more bad news for the sector, the FSB’s report also says that 58 percent of businesses have reported that their profits will be hit in the first quarter of 2021.
The Workers Union on Supporting Small Businesses
Small businesses are an integral part of this country’s economic success. Without them, people are denied access to services, creativity is stifled and towns and village centres are emptied of prosperity.
We simply cannot afford to adopt a blasé attitude to this crisis, because the effects will be felt right across the country. Local jobs will collapse. People looking to start their own businesses will be discouraged by adverse conditions. Current business owners will stare into the abyss of bankruptcy.
All of this is avoidable. But the government must first acknowledge the scale of the problem before it can offer effective solutions.
The Workers Union wants to see increased levels of financial assistance for small businesses. Many owners at this level do not pay themselves a salary; rather they take a dividend instead. People in this position are therefore ineligible for help under the furlough scheme. That is neither sustainable or acceptable – particularly in a country that built its reputation on trade and industry.
So our message to Mr Johnson is quite clear. Support small businesses now by creating a grant scheme covering projected revenue. This should underwrite lost income over the next two quarters and include a 20 percent “uplift” for businesses turning over less than 30,000 a year.
The Workers Union – Supporting small businesses, supporting you