TIER system will only work with right guidance and funding, say small firms.

Responding to the Prime Minister Boris Johnson’s speech in the Commons, in which he outlined a new three tier coronavirus restriction system for businesses in England, Federation of Small Businesses (FSB) National Chairman Mike Cherry said: “Small businesses recognise that safety must come first. However, there’s no escaping the fact that this new system will mean huge disruption for firms all over England, many of which have borne the brunt of restrictions over the last six months. Small businesses that have spent thousands on safety measures for their premises, and made every effort to follow existing guidelines, will now be told to close. Any further restrictions placed on them should be evidence-led – transparency is a must.

“The tier system will only work if the funding for business support and guidance to accompany it is sufficient, crystal clear and timely. Government at all levels must ensure that the critical measures announced on Friday are easily accessible from day one. The additional £1 billion to bolster the Towns Fund announced today is encouraging to see. These must be seen as a starting point for the evolution of business support measures, not an end point, especially as we head into the crucial festive season.

“Far too many are still excluded from the Government’s efforts to help business owners – not least company directors and the newly self-employed. A rescue package for these groups is urgently needed.

“We’ve always said that the delivery of the world-beating test-and-trace system that we were promised months ago is central to getting our small business community firing on all cylinders again. The Government is right to extend greater funding and support to strengthen test-and-trace efforts at the local level, and business owners across the country will be looking forward to improvements on this front.

“Policymakers should now be looking at cross-cutting interventions to spur growth, start-ups and future job creation as our economy is changed for the long-term. Bringing down Employer National Insurance Contributions and lifting the business rates burden for more small firms would be good places to start.”

Reflecting on the impacts for businesses in the North West, Regional Chairman Chris Manka said:

“I would like to pay tribute to our members and businesses across the North who have been working tirelessly to ensure their businesses function in a Covid-secure environment. It is now imperative that they are supported, in whichever tier they are placed, to survive these further lockdown restrictions.

“It is crucial that business support measures are put in place in consultation with and in response to local businesses and business need and led by local leaders and stakeholders. Support needs to be in place for the businesses and their supply chains, not just the employees, and this can only be done with the benefit of local intelligence and evidence.

“We have consistently highlighted that far too many are still excluded from the Government’s efforts to help business owners – not least company directors and the newly self-employed. A rescue package for such groups is urgently needed. Across the North such measures are paramount as our businesses are put into stricter lockdown measures.

“Policymakers should now be looking at cross-cutting interventions to spur growth, start-ups and future job creation as our economy is changed for the long-term. As business and entrepreneurs in the North we have long been challenged to “level-up” the economy, but without support, such aspirations will be impossible and businesses will close. Bringing down Employer National Insurance Contributions and lifting the business rates burden for more small firms would be good places to start.

“Poor cash flow and diminishing turnovers are now posing serious threats to businesses, especially those in the hospitality sector. Many are going to need a further cash injection to survive a long and lean winter, and a grant scheme like the Small Business Rate Relief package announced at the start of lockdown in March would help the worst affected firms make ends meet.

“The one thing that businesses need is certainty and they need to be communicated to with clarity so they can put plans in place.”