Furlough extension among measures Chancellor must consider - Chamber

An extension to the furlough scheme until at least the end of July and further grant support are among new measures Greater Birmingham Chambers of Commerce is urging the Government to consider.

Ahead the Chancellor 's budget on 3 March, the Chamber is working with its members to highlight key messages from the Back Our Businesses report.

This week, the Chamber is highlighting gaps in Government grant support and the Coronavirus Job Retention Scheme.

The Chamber is calling on the Government to ensure that:

• Additional grant support is available for closed businesses with high overheads for whom the current grant levels cannot pay the bills
• Non-business rates payers and businesses without commercial premises are able to access grant support
• Significantly impacted supply chain firms are able to access support alongside those directly required to close and/or limit their activities
• Directors of limited companies, the recently self employed, charities currently excluded from support are able to access it

The Chamber is also urging Government to extend the furlough scheme (CJRS) to at least the end of July and for the cost of National Insurance and pension contributions to be covered for furloughed staff in firms currently unable to operate.

The messages are taken from the Chamber 's Back Our Businesses report which focuses on nine key areas in which businesses need urgent Government support.

The report was launched in January in response to the latest national lockdown.

It focuses on the immediate term measures that impacted businesses need in order to survive and in time thrive, through Covid-19.

A number of Chamber members including Solihull Chamber vice-president and Touchwood general manager Tony Elvin have joined the calls to action.

Further videos can be found on Twitter and LinkedIn using #BackOurBusinesses.

Henrietta Brealey (pictured), chief strategy officer at GBCC, said: “As a whole, the support brought forward by the Government to date has been extensive and made a substantial difference to businesses ' ability to survive this period.

“However as the months stretch on, the gaps and shortcomings for key groups are becoming all the more pressing.

“Many businesses with larger premises, particularly those in the hospitality or live events sector in high rent areas, tell us that the current grant support available does not come close to covering their fixed costs.

“They are running out of cash and fast, even after, in many cases, taking out substantial loans.

“This is in addition to the well highlighted gaps in direct support facing directors of limited companies, wider supply chains and charitable sector and the recently self employed.

“In addition, giving businesses certainty on extension of the CJRS is critical. Redundancy processes take time and many will already be having to make difficult decisions now in the absence of clarity on how long the scheme will continue for.

“We are all looking forward to being able to push through this challenging period and into the opportunities ahead.

“But with many months of Covid restrictions still looming, it is critical that the Chancellor takes further steps to Back Our Businesses in his budget. ”