Covid-19: Small Businesses

Baroness Bakewell of Hardington Mandeville Excerpts

Wednesday 13th January 2021 Lords Chamber

[Lord Callanan (Con)]

We are aware of the issue of dividends highlighted by the noble Lord. We have looked at that, but it has proved very difficult to separate different kinds of dividends. However, we have amended some of the terms of the bounce-back loans—for example, no repayments are due during the first 12 months of the loan term. This gives businesses the space they need to get through the difficult period without the worry of directly repaying in the immediately following months.

[Baroness Bakewell of Hardington Mandeville (LD) [V]]

My Lords, large villages and small market towns are dependent on a varied patchwork of small businesses for both their economic and community well-being. Many of these have already closed during lockdown. Whether they provide retail outlets, services such as hairdressers, or are small engineering subcontractors, they all need and deserve support. Can the Minister give reassurances that rural areas will not be forgotten when considering support?

[Lord Callanan (Con)]

Rural areas are badly affected, as indeed are city areas. Like other SMEs, rural businesses can access support including loan guarantees, business grants and the tax deferrals I referred to. Those needing advice can now access free advice on the right finances from local government-backed growth hubs, which are part of the LEPs. But I totally accept the point made by the noble Baroness.