Self-employed and supply chains need Tier 3 support

Self-employed and supply chains need Tier 3 support

Self-employed and supply chains need Tier 3 support

As more regions across England look set to move into Tier 3 restrictions, as part of the government’s efforts to curb the rise of coronavirus, the Federation of Small Businesses has warned that without the right support in place, many small firms may not survive.

  • Job Support Scheme should be expanded to help suppliers of those in hardest hit sectors
  • Self-employed support scheme should be set at 67 per cent
  • Urgent help needed for those left out of support including newly self-employed and company directors

-The updated Job Support Scheme (JSS) and the Local Restrictions Support Grant (LRSG) should apply to:

  • Suppliers who’ve lost the significant part of their revenue as a result of local restrictions, for instance food distribution firms who supply to hospitality venues
  • Small businesses whose activity primarily takes place in workplaces which are either closed or severely restricted by Covid-secure guidance, for example those serving wedding venues and sports stadiums, including those providing transport to and from closed venues, such as taxi drivers serving the night-time economy.

-The self-employment support scheme should be set at 6a7 per cent for those who’ve lost significant revenue as a result of local restrictions, and as a matter of urgency, a similar level of support should be in place in the form of Business Rescue Grants for those company directors who have lost significant revenue.

Federation of Small Business (FSB) National Chair Mike Cherry said:

“This is a critical stage for the nation as we see cases of coronavirus rise, while at the same time, more restrictions being imposed to help curb the spread of the disease. However, where these restrictions are at their tightest, we absolutely must have the support in place to safeguard millions of businesses as well as tens of millions of jobs and livelihoods.

“Small firms recognise the importance of these measures to protect the nation, that is why they have been at the forefront when it comes to using masks, protective screens and implementing the test and trace system. But now the government must commit to ensuring every region has the right support in place.

“We need to ensure that the Job Support Scheme as well as the Local Restrictions and Support Grants (LSRG) are available not only to small businesses forced to close or limit their activities, but also to those who are directly connected to these firms via supply chains.

“This is critical to food suppliers and events management firms who have seen the collapse of the hospitality sector during this crisis.

“The self-employed, especially those newly employed who at the start of the year were ineligible for help and are desperate for support. That is why the Self-Employment Support Scheme should be set at 67 per cent for those who’ve lost significant revenue as a result of local restrictions.

“The newly self-employed and company directors are in dire straits, and a rescue package for these groups is urgently needed.

“If we are to ensure that small firms survive the difficult winter ahead, then it is vital that the government takes action now and prevent a collapse in the small firms that are crucially the backbone of our economy.”


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