A survey by the Federation of Small Businesses, revealed that around 250,000 small firms are expected to close this year due to the combined pressure they are under from both Brexit and the coronavirus pandemic.
The survey also revealed that a huge cost is ahead for employment without any extra support from the Treasury to help mitigate the challenges its members face.
One in five firms cut jobs in Q4 of 2020, with one in seven expected to cut employment further in the current quarter, to March.
The FSB was told that exporters were feeling the strain from new EU trade rules. Just below a half expect international sales to fall. Weaker profitability in 2021 expectations reached an all-time high of 58%.
Mike Cherry, FSB chairman states that the time the March budget happens would be too late for chancellor Rishi Sunak to expand his financial support. Too many firms are already falling through gaps.
‘’The development of business support measures has not kept pace with intensifying restrictions. As a result, we risk losing hundreds of thousands of great, ultimately viable small businesses this year, at huge cost to local communities and individual livelihoods.’’
Though support has been offered from the government, company directors, the newly self-employed, those without commercial premises and those in supply chains are being ‘’left out in the cold’’.