Coronavirus: Supporting Businesses and Individuals

Bambos Charalambous Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Bambos Charalambous (Enfield, Southgate) (Lab)]

While all nations have grappled with how to respond to the pandemic, our Government’s slowness to react has had a devastating impact on businesses and left many on the brink of financial ruin. The Government’s financial support for businesses has been patchy at best, and non-existent for freelancers and some limited companies. In Enfield, Southgate, we are lucky to have many excellent family-run businesses, such as Perry’s The Wedding Company in Winchmore Hill, which I know was pleased to hear the road map out of lockdown and what it means for the wedding industry.

Just over a week ago, I started a survey of local small businesses in Enfield, Southgate. I asked them what their experience of the Government’s support was and what they felt their prospects were for the future if they did not receive urgent help. A hair salon owner said,

“It’s all about surviving month by month from now on”.

A local popular family restaurant owner said:

“We have had to go into our savings as we are still paying rent and utilities etc even though the business is closed; in our 43 years there we have never experienced anything like this. Hopefully we can save the business.”

A local well-loved family pub will most likely have to close as a result of the lack of Government support. A local café owner said,

“We have had no help to keep us afloat... It’s been awful. We will need rents paid and business rates paid to help us for the next year.”

A local start-up business sole trader said,

“I have had no company income for 7 of the previous 11 months. Business is still solvent, but all reserves built up used”.

Those are comments from real businesses that are all struggling and in urgent need of help.

The Government’s announcements on lockdown measures have always failed to take into account the impact on small businesses, and any financial support has lagged behind. It is as though it has been an afterthought, and yesterday’s announcement of the road map out of lockdown was no exception. As we wait for the Chancellor to make his announcement about the financial support in next week’s Budget, I can tell him what local small businesses are thinking. Although they welcome the Government’s recently announced options on how to pay back the business loans, the reality of struggling for years is devastating for them. Overwhelmingly, they told me that they need to take the option of paying back their loan over 10 years. They are also calling on the Government to extend the business rates holiday, to ensure their survival, and there are other measures that could be taken, including the extension of the furlough scheme and the availability of grants until businesses are able to open, as per the milestones stated in the road map out of lockdown. Small businesses have taken a huge knock over the past 12 months due to the Government’s slow reaction to the pandemic. The Government have been found wanting in their support for small businesses and they will not be forgiven if they fail again to give the support for small businesses in next week’s Budget.