In an effort to provide much-needed financial assistance to struggling businesses, the UK Budget, set to be announced this week, will include £5 billion in funding. With approximately 700,000 businesses on the verge of bankruptcy, these cash grants are specifically designed to support shops and salons, aiming to prevent further business closures and job losses. Retailers deemed non-essential will have access to grants of £6,000 per store to aid them in reopening, while businesses in the personal care and gym sectors can claim up to £18,000 per site.
The exact nature of this funding is yet to be determined, leaving many questioning whether it will simply extend existing support schemes or introduce new initiatives. However, the fact that the government is allocating such a significant amount of funding highlights their recognition of the ongoing challenges faced by businesses due to the Covid-19 crisis.
Recent reports in the press have shed light on the difficult situation faced by business owners, particularly those in the retail and hair/beauty salon sectors. Many of these businesses were thriving before the pandemic hit but have since accumulated substantial debts. As the end of the lockdown approaches, concerns about repaying these debts have become a major source of anxiety. Responding to these concerns, the Fighting Back for Business campaign, comprised of small and medium-sized enterprises, has urged Chancellor Rishi Sunak to cancel the debts accumulated through government-backed loans.
Helen Dickinson, CEO of the British Retail Consortium, emphasized the significance of restart grants for struggling businesses. She also stressed the importance of maintaining the business rates holiday to ensure ongoing support. Without sustained assistance, these cash grants will only provide temporary relief.
Chancellor Sunak acknowledged the challenges faced by local businesses and expressed optimism for the future. He believes that with the additional £5 billion in cash grants, “Our high streets can open their doors with optimism.” These funds, in conjunction with previous packages of support, aim to provide a glimmer of hope for struggling businesses, serving as a beacon of light at the end of the tunnel.
Useful Links:
1. Government Business Support
2. British Retail Consortium
