Critical problems call for bold solutions. For British businesses, problems don’t come much bigger than the coronavirus pandemic that has plagued the UK for close to a year now.
Last year, decisive policies such as furlough and the Bounce Back Loan scheme provided a lifeline for businesses when uncertainty was at its peak. However, as the pandemic has stretched on, businesses began looking for more reassurance from government.
The Chancellor Rishi Sunak certainly went a way towards that with his latest Budget statement. The headline announcements for struggling businesses include:
The question is, is this enough to prevent a wave of insolvencies this year and next?
“To an extent”, says Tom Fox, Licensed Insolvency Practitioner at Umbrella Insolvency.
“The decision to extend furlough, plus additional grants, loans and tax freezes will all provide more certainty for businesses that would otherwise struggle over the next few months. Whether firms can survive without this support will be the real test towards the end of the year.
“Clearly, nobody knows what the UK will look like in a few months time. But if these various support schemes are withdrawn at the wrong time then all the government’s efforts to help businesses up until now could be wasted. I think that would be up there with the worst possible outcomes.
“In some ways, the most interesting parts of this budget are the new super deduction and the ‘Help to Grow’ scheme. I think that these are quite bold policies and indicate a desire from the government to encourage investment and growth at a crucial time for the economy.”
Is your business struggling with coronavirus pressures? Speak to a member of the Umbrella.UK business insolvency team for advice today. Call: 0800 611 8888.