Business Response To New Grants For Firms Forced To Close Due To Local Coronavirus Restrictions

Responding to the announcement that firms in England forced to close due to local Coronavirus restrictions will be able to claim grants of up to £1,500 every three weeks, business organisations made the following comments:

Annie Gascoyne, CBI Director of Economic Policy, said:

“New direct cash grants will certainly help small businesses if their area falls under new restrictions to protect public health.

“But the impact of COVID-19 is still hurting businesses, so the Government will need to look at more targeted support in the autumn. That needs to include a successor to the furlough scheme and allowing businesses to defer VAT payments from July to September.”

BCC Director-General Adam Marshall said:

“Businesses forced to close through no fault of their own will welcome any new grant support, but for most this will not be enough to offset the resulting cash crunch.

“With new local restrictions becoming more frequent, a comprehensive package of support will be needed for affected firms. More than half of Chamber members see local lockdowns as a major barrier to maintaining day-to-day operations and more than 1 in 3 have three months or less worth of cash in reserve.

“Ministers should increase the amount on offer to ensure businesses and jobs are protected, and extend coverage to more firms that are hard-hit but not forced to close.”