‘Businesses left out in the cold will fail, through no fault of their own’

MANY SMALL local business will not be able to reopen or will find it impossible to recover as a result of being denied financial support form the Government, business leaders have warned.

Carolyn Frank, the Yorkshire development manager for the Federation of Small Businesses, said the exclusion of many business owners will mean they are also unable to help their local economies recover from the Covid-19 pandemic.

And Jonathan Geldart, the director general for the Institute of Directors, added that the “door had remained stubbornly closed” when it came to certain areas of assistance.

Ms Frank told The Yorkshire Post: “It is vitally important to look at other ways to help the people who haven’t had any help so far. We have heard from many small businesses and the self employed who are facing reopening from a very difficult financial position, due to lack of support.

“In some cases they will find it impossible to reopen or difficult to recover, so ongoing support will be needed to help these businesses that are key to economic recovery for our area.

“Other support mechanisms for those who have been left behind are absolutely vital to this, alongside the lifelines offered to those who already fit into the Government’s schemes.”

Mr Geldart said measures revealed by Chancellor Rishi Sunak to help directors had arrived too late for many entrepreneurs who had by that stage been shut out of any support for nearly a year.

He added: “We have had significant wins, such as changes to insolvency rules but the Government has not heeded our calls to help limited-company directors.

“We have been pushing the Chancellor to extend grant support to cover dividend income. Frustratingly, that door remains stubbornly closed.

“We welcomed the widening of income support for the self employed but limited-company directors are rightly angry and frustrated to find themselves repeatedly left out in the cold – through no fault of their own.”