Knowledge Centre
22nd December 2010
Small firms need help to get them through the Christmas and New Year period after being blighted by losses due to the severe weather, a campaign group has claimed.
The Federation of Small Businesses (FSB) says that retailers may struggle to make it through the early part of 2011, with the planned VAT rise coming hard on the heels of a difficult December. It says that the Government and the banks need to give firms "the breathing space they need to stay afloat".
Estimating that the continuing cold weather is costing businesses up to £1 billion a day, the FSB is calling on the Government for a range of measures to give some "leeway". These include a plea for HMRC to extend its Time to Pay scheme - the idea being to grant small firms the chance to delay paying their tax and improve their cash flow - and for local councils to grant hardship relief and to temporarily reduce rate bills for those in difficulty.
In addition, the FSB called on landlords - especially in cases where local authorities are the landlord - to hold off on rent reviews in the New Year.
Meanwhile, it issued a general plea to banks, insurers and utility companies to "give small businesses some breathing space".
Warning that there was more bad weather due - and that this was to compound an already bleak view of Q4 for many retailers - the FSB said that confidence levels had plummeted.
National chairman John Walker called for the co-ordinated effort from the Government, banks, councils and landlords.
"Small businesses were banking on a good Christmas to make up for a bad year and the prospect of more bad news in 2011," he added.
"Many shops and restaurants have taken on additional seasonal staff to cope with the anticipated demand of the Christmas season, but last weekend saw a drop in footfall of up to 30%, leaving businesses with increased overheads and falling trade.
"The last thing this Government needs is a wave of bankruptcies and shop closures in 2011, but small firms will find it very difficult to bounce back in the New Year when VAT increases to 20% and the spending cuts start to bite."
Speaking to the BBC, Royal Bank of Scotland - which also owns NatWest - said that it was offering help to small businesses by extending overdrafts and "loan repayment holidays", in addition to finance in order to help small firms replace damage assets.
NatWest and RBS small business chair Peter Ibbetson said: "Cash flow is critical for small businesses at Christmas, so severe weather can hit their balance sheets hard."
IMAGE Gareth Fuller/PA Wire
Whatever the weather, let More Th>n insurance protect your business. Ask us for a cheap shop insurance quote today, or find out about our great value van insurance.
'Help small firms survive the cold spell' call
The Federation of Small Businesses (FSB) says that retailers may struggle to make it through the early part of 2011, with the planned VAT rise coming hard on the heels of a difficult December. It says that the Government and the banks need to give firms "the breathing space they need to stay afloat".
Estimating that the continuing cold weather is costing businesses up to £1 billion a day, the FSB is calling on the Government for a range of measures to give some "leeway". These include a plea for HMRC to extend its Time to Pay scheme - the idea being to grant small firms the chance to delay paying their tax and improve their cash flow - and for local councils to grant hardship relief and to temporarily reduce rate bills for those in difficulty.
In addition, the FSB called on landlords - especially in cases where local authorities are the landlord - to hold off on rent reviews in the New Year.
Meanwhile, it issued a general plea to banks, insurers and utility companies to "give small businesses some breathing space".
Warning that there was more bad weather due - and that this was to compound an already bleak view of Q4 for many retailers - the FSB said that confidence levels had plummeted.
National chairman John Walker called for the co-ordinated effort from the Government, banks, councils and landlords.
"Small businesses were banking on a good Christmas to make up for a bad year and the prospect of more bad news in 2011," he added.
"Many shops and restaurants have taken on additional seasonal staff to cope with the anticipated demand of the Christmas season, but last weekend saw a drop in footfall of up to 30%, leaving businesses with increased overheads and falling trade.
"The last thing this Government needs is a wave of bankruptcies and shop closures in 2011, but small firms will find it very difficult to bounce back in the New Year when VAT increases to 20% and the spending cuts start to bite."
Speaking to the BBC, Royal Bank of Scotland - which also owns NatWest - said that it was offering help to small businesses by extending overdrafts and "loan repayment holidays", in addition to finance in order to help small firms replace damage assets.
NatWest and RBS small business chair Peter Ibbetson said: "Cash flow is critical for small businesses at Christmas, so severe weather can hit their balance sheets hard."
IMAGE Gareth Fuller/PA Wire
Whatever the weather, let More Th>n insurance protect your business. Ask us for a cheap shop insurance quote today, or find out about our great value van insurance.
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Site by Acknowledgement
You know it’s really cool how small businesses are continually receiving more and more emphasis and recognition while the former giants seem to be slowly eroding in their grips of commercial power. I find this to be a definite “light,” if you will, for economic growth and stability, and incidentally, a post I came across today seems to confirm the observation. Anyway, if you’re interested, it’s somewhere hereabouts (http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=C87A9H1K3A71&preview=article&linkid=ff4c61e4-cbf2-4a4b-8f03-4c73fa659cc0&pdaffid=ZVFwBG5jk4Kvl9OaBJc5%2bg%3d%3d) Of course, difficulties for small businesses are a bit of an inevitability, but overall, I believe it’s a brighter picture.
Posted: 22 Dec 2010 22:26