Western Morning News (Saturday)
Small businesses facing third battle for survival
THE third lockdown has left some small business owners in Cornwall with ‘no battle left in them’, according to a business leader.
Kim Conchie, chief executive of Cornwall Chamber of Commerce, is lobbying for the Government to be less reactive and to come up with a 15-month plan so businesses know exactly where they stand.
He said that although business owners in Cornwall largely accepted the new lockdown, it “doesn’t mean we don’t feel very sad about it”.
Mr Conchie added: “There are some small business owners who don’t have another battle in them. The point has come to close up shop or throw the keys back at the landlord or the bank.”
His comments were echoed by Ann Vandermeulen, of the Federation of Small Businesses, who represents 4,000 firms in Cornwall.
She said: “The first lockdown was a big shock but people weren’t expecting the help that they got. At that point businesses would also have had their own resources – some of their original turnover, savings and all that kind of thing.
“We’re now in the position where everybody has used up everything they’ve got, all the back-up plans and everything they possibly had has gone, so support measures now need to be really robust and more than they’ve been before, and they’re probably not going to be enough – that’s the big worry at the moment.”
The business leaders made their comments after Chancellor of the Exchequer Rishi Sunak announced £4.6 billion in lockdown grants for retail, hospitality and leisure businesses.
Mr Conchie told Western Morning News sister website CornwallLive: “It’s very good that Rishi Sunak has come up with this aid but it’s reactive the whole time. I think what businesses need to see is some certainty.
“I’m no lover of the Brexit deal but at least now you can get some clarity of purpose around that.”
“What I’m lobbying for is some procedure set out to March 2022 – a 15-month programme – so that businesses know what the regime on the VAT holiday is going to be, what is happening about business rate relief, what is happening about the furlough scheme; not having people scratching their heads each time.”
He added: “For example, the announcement of £4.6 billion is great for hospitality and leisure, but what about businesses in the supply chain, whose customers have closed. I’m talking about your fruit and veg supplier to the big hotels; the yoga instructor to the myriad businesses which supply hotels. They themselves haven’t been told to close but they can’t work because their main customers have closed.
“Those people have been left scratching their heads as it’s all unclear. On top of home schooling, it puts enormous home pressure on people. I think we need a 15-month plan so that businesses and those self-employed know what the circumstances are.
“The Whitehall mandarins forget just how complex and quirky the small business economy of places like Cornwall is.
“I know businesses that have been absolutely devastated by this – including self-employed people who want to know if they get any grants. Are they covered under the mandatory scheme or are they covered by the local discretionary scheme?”
Mr Conchie said businesses could write off the usually lucrative February half-term week, but there were reasons to remain positive.
“We’re going forward to a new normality. For Cornwall, the next review is February so for Cornwall
Small businesses in the Westcountry have struggled to survive three lockdowns we can write off February half-term from a hospitality and tourism point of view.
“Everybody is keeping their fingers crossed that there will be a loosening up because of vaccines and this lockdown acting as a circuit breaker so we can start the hospitality industry in full swing for the Easter holidays.”
He pointed out that other sectors were doing okay in Cornwall, such as the housing market.
Ann Vandermeulin lent her support to her national chairman’s view that the new lockdown funds don’t go far enough to help small businesses in crisis. Federation of Small Businesses’ Mike Cherry said: “There remain too many groups who need more support to weather this storm such as the newly self-employed, those in supply chains and company directors.”
Ms Vandermeulen added that too many people had fallen through the gaps in Cornwall, and that early support would be wasted if businesses folded without new lockdown help.
Whitehall mandarins forget how complex the small business economy of places like Cornwall is KIM CONCHIE