The Treasury Select Committee has called on the Government to expand support to those businesses and self-employed who have missed out on Government aid during the Coronavirus pandemic.
The cross-party group of MPs acknowledged that due to the speed at which support loans and requirements had been created last year, ‘some people lost out’.
However, this does not justify why the gaps in pandemic support have not been addressed eleven months later, the inquiry said.
Responding to the Treasury Select Committee’s latest Economic Impact of Coronavirus inquiry update, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “The Government urgently needs to come forward with a road map to recovery and interventions to help those unable to access business support. Action before a pro-business Budget next month would mark a real statement of intent.”
FSB has proposed a Directors’ Income Support Scheme (DISS) and suggested building support initiatives according to what workers have missed out on would be the best remedy for those who have lacked support.
Mr Cherry added: “Directors and the newly self-employed have suffered a torrid eleven months. The Treasury Committee has rightly and tirelessly made the case for them. It’s good to see politicians of all stripes highlighting our DISS proposal, a proposal designed by leaders in the accounting field.
“The Government should use this Budget to install new measures to help all those within the business community who are overlooked. That includes thousands of suppliers which sell to retail, leisure and hospitality businesses but cannot access the rates relief or cash grants designed for these industries. Building support initiatives according to assessment of lost revenue, rather than property or sector, marks the way forward.
“Last year saw the biggest drop in UK GDP in modern history. We now need the most pro-business Budget in modern history to overcome the damage done. The Government’s plan for jobs will only succeed with the right plan for the small business owners, sole traders and directors who will spur our recovery.”