Small Business Support: Covid-19

Opened the debate

Christine Jardine highlighted the severe impact of the pandemic on small enterprises, emphasising that every business is a group of individuals or an individual struggling to survive. She discussed how businesses have adapted but are still facing significant challenges, especially in sectors like arts and entertainment, hospitality, and retail. She called for long-term support beyond current short-term measures such as furlough and loans, proposing ideas like covering postage fees for small shops to level the playing field with online giants and suspending business rates. Jardine also stressed the need for innovation and practical solutions to help self-employed individuals and entrepreneurs.

Government Response

Kemi Badenoch thanked Christine Jardine for raising this important issue and acknowledged the significant impact of the pandemic on small businesses. She outlined several measures already in place, including £280 billion economic support, almost 10 million jobs furloughed through the CJRS, grants to almost 3 million self-employed individuals, over £68 billion loans to more than 1.4 million SMEs, VAT rate reductions, and business rates holidays until March 2021. The minister also mentioned additional support such as increased funding for restrictions grants (£1.6 billion) and extra help through welfare systems. She highlighted the extension of CJRS until April and the introduction of a fourth income grant for self-employed workers. Additional support includes £4.6 billion in one-off grants and discretionary funding for local authorities, demonstrating the Government's commitment to protecting and supporting small businesses throughout the pandemic.