Proposals to help self-employed and directors backed by cross-party MPs
The Federation of Small Businesses (FSB) chairman has said the government needs to act to help the businesses that fell through the gaps in business support requirements.
In response to the Treasury Committee’s Economic Impact of Coronavirus inquiry update this morning, FSB 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.
“Directors and the newly self-employed have suffered a torrid eleven months. The Treasury Committee has rightly and tirelessly made the case for them.”
Cherry has proposed a Directors’ Income Support Scheme (DISS) and has suggested that building support initiatives according to what workers have missed out on would be the best remedy for those who have lacked support.
“Building support initiatives according to assessment of lost revenue, rather than property or sector, marks the way forward,” he said.
“It’s good to see politicians of all stripes highlighting our DISS proposal today, a proposal designed by leaders in the accounting field.”
An inquiry published by Prospect earlier this week found that Britain’s self-employed workforce face ‘too much risk’ in pursuing their careers and as a result, nearly half were considering leaving their businesses in the future.
The inquiry also showed that 88 per cent of self-employed people said the level of pandemic support they received was not a ‘fair reflection of their tax contribution’.
Cherry urged the government to find a way to support those who were ‘overlooked’, adding that action should be taken before next month’s budget.
“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,” the chairman said.
“Action before a pro-business budget next month would mark a real statement of intent.”
Treasury’s inquiry
The cross-party Treasury Committee’s Economic Impact of Coronavirus inquiry outlined that due to the speed at which support loans and requirements were crafted, ‘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.
“We are disappointed that the Government has so far shown no inclination to expand or provide alternatives to the [Self-Employment Income Support Scheme], which is providing a vital lifeline to many but is not available to all those whom we believe should qualify,” the Committee concluded.
The Treasury’s inquiry backed the DISS proposal which would bring some relief for those who did not meet the government’s initial support criteria.
The government needs to boost businesses in the upcoming budget, Cherry said, with jobs relying on it after a financially strained year with minimal fiscal backing.
“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,” he said.