The headlines today suggest the Chancellor Rishi Sunak has unveiled a £350bn package to help the economy survive the next three months but closer scrutiny suggests it may not be enough. His package includes a business rates holiday for the hospitality sector, help for home mortgage payers, and interest free loans for companies.
ICSM Credit’s Ian Carrotte said it was a start but the main issue was the small print and red tape that was likely to be involved meaning by the time a firm has accessed a survival loan it could be too late. He said: “I agree with the Helen Dickinson of the British Retail Consortium who said she wanted to see the details. We don’t want bureaucracy to slow things up. Adam Marshall, chief executive of the British Chambers of Commerce also echoed those sentiments when he said it was vital the cash gets to the front line quickly. So big promises from Sunak but they need to be backed up with action.”
He was also concerned by the lack of help for the self-employed. “Many businesses in the printing, haulage, construction and courier industries are one person firms. Work is drying up for many one man businesses so they need financial help as their overheads don’t stop overnight.”
The retail and hospitality sectors have already been hit hard. Ian Carrotte welcomed the rates holiday for the hospitality sector but was critical of the Government advice to the public to avoid going to pubs and restaurants. He said if the Government had ordered their closure then their insurance policies would have kicked in but instead they have to decide to either shut up shop and lay off their staff or struggle on with diminished trade.
Ian Carrotte said the biggest issue now for many firms was staying solvent as cash flow dries up. He said: “By joining ICSM Credit now they can find out which firms are likely to go bust and now pay their invoices. To join is less than a tank for diesel so it’s a wise investment – which could see you survive the crisis in tact ready for the improvement that will eventually follow.”
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.email@example.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.firstname.lastname@example.org
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk