Furlough extension lifeline for Lochaber small businesses

The extension of the Covid furlough scheme for businesses announced by UK Chancellor Rishi Sunak in his budget last week might just help the bulk of Lochaber’s small businesses survive the last stretch of the road to recovery.

So said the Federation of Small Businesses’ (FSB) Highlands and Islands Development manager David Richardson, who told the Lochaber Times: ‘By extending the furlough scheme and introducing additional emergency payments for the self-employed, the Chancellor is enabling the bulk of Lochaber’s small business community to struggle round what we hope will be the final lap on the road to recovery.

‘However, the longer current travel restrictions remain, the longer and bumpier the road for our all-important tourism

David Richardson.

and hospitality businesses will be. Many of these businesses operate seasonally and in remote rural areas and they still have to get through next winter. We would have liked to see the Chancellor take a longerterm view. The furloughing extension and self-employed payments should be complemented by grant assistance for the directors of smaller companies and, looking forward, the Chancellor should have cut employers’ national insurance contributions to make it cheaper to create jobs. While welcoming the extension of the VAT cut to September, many of our tourism and hospitality businesses will worry about what happens next. We’ve got to attract consumers back and no-one knows when international markets will reopen. On the bright side, however, the freeze in fuel duty is welcome.’

Mr Richardson added the hope was now that the Scottish Government will optimise its package of rates and grant support measures, ensuring the focus is on helping the smallest businesses hit hardest, rather than the biggest businesses who have avoided the worst of the restrictions.

And he concluded: ‘The path ahead remains rocky and our small business community is going to need all the support it can get.’