Firms advised to use Budget breathing space
Business owners in the North East are being urged to use the breathing space provided by last week’s Budget to plan for the future.
Alexandra Withers, North East chair of insolvency and restructuring trade body R3, says the Chancellor’s decision to extend the furlough scheme, provide further business grants and a new loans scheme, and to continue the business rates holiday will give some welcome certainty for many business owners concerned at their prospects over the coming months.
But she said more detail was needed.
“What was missing, however, was detail about the Government’s role once these measures start to be withdrawn,” she said.
“As a key creditor in most corporate insolvencies, the Government has a direct role to play in supporting viable restructuring and business rescue proposals.
“By taking a more active and engaged stance as a creditor, the Government could help to save more potentially viable businesses, thereby safeguarding thousands of jobs, securing future tax income, and giving companies a chance to deal with liabilities resulting from the pandemic.”
She added: “There’s no denying the Government’s pandemic measures have helped businesses in the short-term but, as the Chancellor
pointed out, these can’t last forever.
“Directors and owners of struggling companies now have a few months in which to start making plans and taking decisions to secure the future of their businesses, and we would urge them to use this time to seek advice from a qualified source as early as possible.”