Let’s use local shops – and save our vital national champions

THE Covid-19 pandemic is, first and foremost, a human crisis.

We are seeing a profound effect on people and communities around t he world. The pandemic has clearly also introduced considerable economic uncertainty.

While we cannot predict the longterm impact, we do know that the survival of small and medium businesses will be critical to the recovery. They are at the heart of communities and make up 60 per cent of the UK’s private- sector workforce – that’s 17 million individuals who rely on these companies for their livelihood.

At the moment, the small business community is effectively being propped up. Our data suggests that more than a quarter of the UK’s small and medium businesses have furloughed more than half their staff under the Government’s Job Retention Scheme.

These businesses are leaning heavily on emergency funding, and one of the most crucial challenges facing Britain’s leaders over the coming weeks is how to evolve this to offer sustainable and practical longer-term solutions.

The lifting of lockdown does not indicate a light at the end of the tunnel for smaller firms. Many still expect to suffer from enormous contractions in sales well into the summer. It is critical that the Government recognises this and offers flexible support for the community well into the future.

Smaller firms want the Government’s furlough scheme to continue, but with more flexibility in how and when they bring staff back to work. Top-up payments to enable a gradual return at reduced hours is the most popular option, along with shorter furlough periods.

Suggestions from the Chancellor that there will not be a ‘cliff edge’ end to the scheme are welcome. We simply cannot afford to pull the rug from under the feet of these businesses, and withdraw what has become a lifeline for a major part of our economy.

But a nuanced and sophisticated approach is needed – recognising the incredible diversity of small firms – rather than broad-brush guidance that is likely to harm more businesses than it helps.

As the UK takes meaningful steps towards a return to work, half of the firms in this community still feel unprepared to return safely – and half again have not even started to plan for a lifting of restrictions.

Also, 50 per cent acknowledge that their business will need to change for the long term when they return to trading. Smaller firms are naturally agile and can adjust quickly – and those using technol

ogy and data are armed with valuable tools to help them adapt faster – but we must take every possible step to help support this shift. The winners of this crisis will be those that recognise and adapt to the fundamental change we are facing. The losers will be those that try to return to ‘business as usual’ in an environment that has changed beyond recognition.

The Queen’s recent speech echoed wartime slogans and called on UK citizens to show solidarity and strength in the face of adversity.

If there are comparisons to be drawn with wartime, there is no doubt that the UK’s key workers are firmly on the real front line of the battle – but smaller firms are drawing the most fire in the economic fight. I believe this crisis has brought out the best in people. We are leaning in, pulling together, and being there for each other and our communities.

But I see how much the current context is hurting small firms; they feel the impact profoundly. As individuals, we must commit to helping these businesses and our local communities to survive this shock.

Coupling decisive and targeted Government action with grassroots community support will provide our small firms will the best chance of weathering the storm.

We will be poorer as a country if we do not take action now to support our small firm champions.