Chambers call on Chancellor to provide urgent help to businesses on their knees

Please note: This article was published on 15th January 2021, some information may be out of date. For the last news around COVID-19 support, visit our Recovery & Support forum.

The Chamber Network is calling on the Government to provide more financial support to businesses across the UK facing a bleak future from the debilitating squeeze of coronavirus restrictions.

Cash strapped businesses need measures to support cash flow such as extending and expanding business rates relief, prolonging VAT deferrals and offering an immediate, further round of upfront cash grant support – at least equivalent to levels of around £25,000 available in the first national lockdown – with sufficient funds to provide for all businesses that need it in every sector.

More certainty is also needed to help protect jobs and livelihoods by maintaining the Job Retention Scheme, until a full reopening of the economy is possible, and expanding income support for limited company directors.

Businesses cannot afford to wait until the Chancellor’s budget in March; they need these measures now and a guarantee that support will be available throughout the year so they can plan for more than a few weeks ahead.

The impact of the pandemic is increasingly being felt away from the sectors which have been most obviously hit by the restrictions, such as hospitality and leisure.

The Chamber Network has also urged ministers to work closely with companies across the UK to accelerate the rollout of vaccines, using their space, capacity and people as much as possible.

In the meantime, a fit-for-purpose Test, Trace and Isolate system remains critical to keep the economy moving once the current lockdown ends.

The most recent BCC Quarterly Economic Survey of more than 6,000 firms, across all sectors, found that all key economic indicators remain well below pre-crisis levels and four in ten firms have seen their cash flow drop.

Government data also shows UK economic output remains almost 8 per cent below the pre- pandemic levels seen in February 2020.

The below graphic shows what the Chamber network wants from the government.