eLearningClasses.com
Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

How the UK government is supporting small businesses

By Richard Pepler, CEO Optimum Finance 

“UK Plc is facing a challenge like never before and the issues we now face are not just about caring for our nearest and dearest and deciding when to self-isolate but about how to cover our personal and professional outgoings as we enter a period of exceptional uncertainty.

Yesterday’s daily briefing focused on the impact on the economy and the Government’s response, to summarise here’s what you need to know if you’re one of the 5.9 million SMEs in UK:

  • Following on from last week’s Budget SSP refunds to businesses remain – however, much criticism has been levied at this given the low rate of SSP at £94.25 per week. With an average household income in the UK of £29,400 (source: ONS), average monthly rent outside London of £700 (source: ONS) and average monthly mortgage payments of £669 (source: This is Money) this will not go far.
  • Loans have been extended for the very smallest businesses – now available up to £10,000 (up from last week’s announcement of £3,000). However, loans need to be repaid back and, given the uncertain outlook faced by businesses on when this crisis will subside and they can start earning again, taking a loan and increasing debt is not a hugely comfortable position to consider. There is also not yet enough clarity around how quickly this financial support can be accessed and time is of the essence.
  • For retail and hospitality businesses, there will be a 12-month business rates holiday and they will be able to access grants up to £25,000 (which will not need to be repaid). The Government has also confirmed that for those operators in this sector which have insurance, that they will be covered for business interruption.
  • Mortgage payment holidays of three months have been announced for those most affected by this crisis – how people go about accessing this has not been announced.

I have worked with business owners my whole career and have worked through may different challenging times as a business owner myself but I have never experienced anything of this nature. What I do know is that the business community needs decisive action, clarity and strong direction to overcome what we now face.

I hope the Government will go further in its steps and support people with clear and prompt guidance on accessing measures. There is still some way to go with business support in my view as the current action plan still means many SMEs will fall through the cracks without stronger and more flexible funding.

We’re doing our bit and are extending our funding lines to help businesses which need immediate support – everything we do can be done remotely and we are the only business in our sector with a complete digital solution.