'We need more help' - company directors in rallying cry for Covid support

More Government Covid support is needed for company directors who are struggling to keep their businesses afloat and are increasingly considering redundancies.

That was the message from business leaders, who met last night during a virtual event hosted by Forgotten founder Gina Broadhurst and West Midlands mayor Andy Street.

Forgotten was established by Gina and numerous other small, limited business directors, who are fighting for more aid to help those who do not qualify for meaningful government support.

The organisation represents two-million small, limited companies, such as cafes, hairdressers, plumbers and gardeners.

The group has written to the Treasury with a proposal for the Director Income Support Scheme (DISS), devised by the group to aid more limited company directors during the pandemic.

During the event, attendees heard three harrowing stories from business owners, including:

• Angela Lawlor, who set up a limited company in 2018 as part of a new job with an automotive manufacturer, which was abruptly terminated in April
• Ed Hollands, who runs Staffordshire based advertising firm Driven Media
• Marija Erzen (pictured), who, alongside her husband, runs Solutions2, an events business which has been unable to make legitimate income since March

Ed said that his business, despite receiving a bounceback loan and some support, is now thousands of pounds in debt and has contracts slowly slipping away.

He said: “Every time we see a light at the end of the tunnel, in September, January, etc, it seems to be pulled out from under us and there doesn 't seem to be a lot we can do.

“If I went under, there would be a huge knock on [effect] because there would be future jobs that I could provide that I was so close to doing back in January [2020]. ”

Marija too has received some support to pay business rates bills on the firm 's two units in Minworth and Sutton Coldfield, which have been unused by the business in 10 months.

She has also been in receipt of furlough support - but is now considering further redundancies.

Solutions2 's units do not qualify for a business rates holiday, meaning the firm has had to stump up nearly £6,000 a month in rates since the pandemic struck, amid a lack of trading due to the events industry being shut down.

The business has already made 10 staff redundant.

Marija said: “The really sad fact of all of this is that despite fighting for survival for the last 10 months, for our business, for our employees, despite knowing that there is a future in live events, and we 've had a brilliant business for 20 years that has won awards in that industry, we may have to close anyway because we may be forced to go and find alternative employment ourselves.

“To me that is the saddest fact of all of this, is that businesses may close. Directors are not getting any help, and all that talent is being lost.

“We 're grateful for the help that we have had, but we do feel as a business in this industry we need more, and we need more help as directors too. ”

Paul Faulkner, chief executive of the Greater Birmingham Chambers of Commerce, echoed the businesses ' sentiments, and demanded more support urgently for firms.

He said: “Quite simply, we need more support in loads of different ways. It is not to say that the amount so far hasn 't been phenomenal and unprecedented but we need more, it is not a criticism of what has been done before - but we need it urgently.

“We 've heard that the budget at the start of March is being pegged as a stepping stone when things will be looked at.

“That 's not acceptable, it is too far away.

“In that time there will be too many individuals, like those we 've heard from, that will have to make decisions that they don 't want to make, which will have impacts and will leave scars, which will take a lot longer to heal than if we confine the additional support in the short term. ”

Mr Street closed the event by saying that he will “redouble the effort ” to make the case that businesses are worthy of fighting for more support, and hoped that Forgotten will receive a positive response from Government on its DISS proposal.

The Government have yet to respond on Forgotten 's DISS proposal.