Around one-in-20 small businesses within the East Midlands could go under this year – unless the Government does more to protect them.
Nine months of pandemic restrictions have already pushed thousands under.
Compounded by new restrictions on trade with the EU, fears are growing that more will follow.
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A Federation of Small Businesses members’ survey suggests more than 17,500 East Midlands small firms could be lost in the coming months.
That is out of a total figure of 397,000 the Department for Business, Energy and Industrial Strategy (BEIS) said were operating in the region last October.
The FSB – which has 12,000 members across the East Midlands – said the survey suggested that nationally more than 250,000 businesses – an unprecedented number – could close.
The BEIS says there are 5.9 million small firms across the 海角视频.
The figure at risk does not reflect the threat of closure faced by those hoping to survive by freezing operations, cutting headcounts or taking on significant debt.
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FSB East Midlands policy chair Clare Elsby said: “We need to adequately support businesses who are feeling the big pinch, particularly those in the East Midlands who missed out on a fair proportion of local discretionary grants and who have seen a massive footfall reduction in the run up to the Golden Quarter [around Christmas] and those who rely on a thriving night-time economy.
“The fear of at least 17,500 East Midlands businesses folding, based on this fresh FSB data, is extremely worrying.
“Company directors, the newly self-employed, those in supply chains, and those without commercial premises are still being left out in the cold.
We’ve published a five-point plan to address gaps in the support landscape, and we look forward to the Treasury embracing it. Action in March will be too late to stem closures.”
The federation’s quarterly Small Business Index – launched in the wake of the financial crash – showed confidence at its second lowest in the report’s 10-year history.
One in five firms cut jobs in three months to December and one in seven expect to do so this quarter.
The BEIS estimates that 16.8 million people work in smaller firms across the 海角视频.
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The number expecting profits to fall in the next three months is also at an all-time high, with exporters also feeling the strain following the last minute EU-海角视频 trade deal.
On Friday Cabinet Office minister Michael Gove warned businesses and hauliers there was likely to be “significant additional disruption” at the 海角视频 border as a result of Brexit customs changes in the coming weeks.
The latest Government figures show that around 700 lorries have been turned away from the border since new rules came into force after the end of the EU transition period on January 1.
According to the survey, almost half of exporters expect international sales to drop this quarter, up from 33 per cent this time last year.
It also said the vast majority of small business owners do not expect their performance to improve over the next three months.
FSB regional chairman Les Phillimore said: “The development of business support measures has not kept pace with intensifying restrictions.
“As a result, we risk losing tens of thousands of great, ultimately viable small businesses this year, at huge cost to local communities and individual livelihoods. A record number say they plan to close over the next 12 months, and they were saying that even before news of the latest lockdown came through.
“At the outset of the first national lockdown, the 海角视频 Government was bold.
“The support mechanisms put in place weren’t perfect, but they were an exceptionally good starting point.
“That’s why it’s so disappointing that it’s met this second lockdown with a whimper.
“There are meaningful lifelines for retail, leisure and hospitality businesses, which are very welcome as far as they go. But this Government needs to realise that the small business community is much bigger than these three sectors.
“We also have to look again at how we treat emergency debt facilities over the coming months. Many of those who have borrowed significantly have done so in order to innovate. It would be a shame to lose the top businesses of tomorrow because of a failure to extend grace periods today.
“All the while our exporters are trying to get across what a new EU-海角视频 trade agreement means for them without the cash they need to make adjustments. Direct funding to help them manage new obligations in the form of transition vouchers is urgently needed.
“This Government can stem losses and protect the businesses of the future, but only if it acts now.”
Last week Chancellor Rishi Sunak announced that around 600,000 retail, hospitality and leisure sites would be able to claim a one-off grant of up to £9,000, costing the Treasury £4.6 billion.
A further £594 million has been offered to local authorities and devolved administrations to support businesses not eligible for the grants.