'The government will back SMEs through difficult days ahead'

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The government has announced measures to help SMEs (Credit: James Newcombe/Unsplash)

Beyond the high-profile collapse of at least one airline buckling under the pressure of travel bans, we’ve seen countless others impacted by the cancellation of flights, holiday bookings and events.

Thankfully, the government has said it will do “whatever it takes” to support small businesses.

Following last week’s ambitious Budget, Tuesday saw the government announce a further £350 billion package to help small businesses which are struggling to cope.

This could not come at a more crucial time.

The package includes a complete moratorium on business rates for those in retail, leisure or hospitality sectors for one year.

Many small firms in the travel industry should qualify – it’s best to speak to your local authority as soon as possible if in any doubt.

Meanwhile, those who qualify for the Retail Discount can access cash grants of £25,000, and all those that qualify for small business rates relief – with rateable values under £15,000 – can access grants of £10,000.

Clearly this is good news for many businesses in the travel sector, but we do not yet know exactly when these grants will become available.

You can access these underwritten loans through your bank. If you’re interested in securing one, it’s best to start a conversation about it as soon as you can.

The chancellor has also said he will work with business groups to develop an Employment Support Package which will help to mitigate costs for small firms, thereby preventing lay-offs, and will provide support for the self-employed.

So, what can you do if you are worried?

Do not be afraid to talk. During these difficult times, have conversations with the relevant authorities, your bank, landlord, customers, employees, other business owners and your membership body.

Here at the Federation of Small Businesses (FSB), we can provide access to legal, tax and insurance experts round the clock – as well as health professionals, who can lend an ear if you just want to chat.

HMRC is going to be key in this crisis and has now set up a dedicated phoneline for coronavirus-related challenges, with options to defer or delay payment.