Rishi Sunak Offers Lifeline to Small Businesses

Words Sarah Adama

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Chancellor Rishi Sunak has revealed plans to offer more financial support to struggling business under the third nationwide lockdown.

Following warnings from business bodies that another nationwide lockdown would cost at least £8bn losses each month in sales, the plans will provide grants to the retail, leisure and hospitality industries. Under the nationwide lockdown, over 500,000 businesses will be forced to shut their doors for the next few weeks. According to think tank Institute of Economic Affairs, this could mean a blow of almost £18bn to the economy each month and an estimated loss of approximately £2bn per week in lost sales according to the British Retail Consortium (BRC). 

The closed businesses are set to receive a top-up grant of up to £9,000 per property, the highest grant for businesses with a rateable value of over £51,000. Taxpayers will contribute a further £4bn for the business grants to assist over 600,000 struggling businesses.

The Government has also extended the furlough scheme for a further term, up until March and will continue to provide 100% government backed loans. 

For more information, visit the government website here.

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