Small businesses will struggle in recession
The UK’s Federation of Small Businesses (FSB) has told the government that small businesses in the country will struggle to survive during the oncoming recession.
Many small businesses are likely to go bankrupt unless the government steps in with a rescue package, the FSB warned.
To avert a crisis, the FSB has proposed that the government sets up a £1 billion Small Business Survival Fund, available to any small business that finds itself struggling to make payments.
The banking sector, which has received £37 billion in government support, backs the FSB’s claims, and last week representatives from the banking industry met with ministers to work out a support package for small businesses.
The meeting was not as successful as hoped, the only pledge secured from the government was that they will meet with small business representatives.
The government believes the banking sector should be responsible for keeping small businesses afloat.
Terms of the government’s rescue package for banks said lending to small businesses must increase to last year’s level of £53 billion.
Banks, however, have yet to adjust their behaviour accordingly.
Category: Financials, Insurance News
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