The Federation of Small Businesses has welcomed news the Chancellor is to issue £5billion of new grants to firms across England in a bid to help them survive - but warned more help is needed.

Rishi Sunak is set to officially unveil the new package of support for those hit hardest by the lockdowns when he delivers his Budget on Wednesday.

Alison Parmar, Kent and Medway development manager for the FSB echoed comments by its national chair Mike Cherry.

She explained: "It is an extremely challenging time for small businesses who have fought tooth and nail to stay afloat in the last year, so we are pleased that our calls for further cash grant support will be heeded.

“This money – £5bn for 700,000 businesses - is a significant cash injection for non-essential retail, pubs, bars, restaurants, gyms, hairdressers and beauty salons. It will provide a much-needed lifeline, offering firms some reassurance as we look to put lockdowns behind us and focus on a vaccine-fuelled recovery.

“The government’s announcement also contains £425million for suppliers and others that have lost trade. Healthy supply chains are crucial to the economy, but many, particularly those in the event and hospitality sectors, have collapsed during the crisis. That is why it’s disappointing that the amount of discretionary grant funding provided amounts to only 5% of the total, as this will make it difficult for local authorities to reach many of those firms in the supply chain.

“Over half of those on furlough are outside of retail, leisure and hospitality, so the amount of ARG [Additional Restrictions Grant] funding may need to increase to match the real pain in the economy.

“Councils must also prioritise issuing their grants. Government figures show that only 13% of existing funds given to them by the Treasury in mid-November had reached businesses by mid-January. They should be in a big race to stop supply chain businesses from going bust and have no excuse for any delays. They must increase the speed at which they get the money they do have out the door and into businesses’ bank accounts as we look to the future.

“We hope this announcement will be followed up at the Budget by further good news for those that have been excluded from income support throughout this crisis. We have presented fully worked-up policy solutions to government, alongside others. Ministers now have the chance to choose which of these to go for.”

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