Senior figures within the British Chambers of Commerce say the Government must come up with clear guidance and a package of support to help businesses plan their way out of the “long, dark tunnel” ahead.
Chancellor Rishi Sunak has announced a one-off grant of up to £9,000 to around 600,000 retail, hospitality and leisure sites on top of an extra £594 million to councils and devolved administrations.
Chambers director general Adam Marshall said while the immediate cash flow support was welcome, it would not be enough to save many firms.
He said: "We need to see a clear support package for the whole of 2021, not just another incremental intervention."
Meanwhile, East Midlands Chamber chief executive Scott Knowles said sound guidance was now needed to help the 海角视频 economy bounce back from one of the worst periods in its history.
It comes as Michael Gove said the latest lockdown restrictions could remain in place until March.
Mr Marshall said: “The government must move away from this drip-feed approach and set out a long-term plan that allows all businesses of all shapes and sizes to plan, and ultimately survive.
“Many smaller firms won’t qualify for the full headline amounts set out in the Chancellor’s statement, and will be left struggling to see how this new top-up grant will help them out of their cashflow problems.
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“Support must be sufficient to cover not just those on the front line of retail, hospitality and leisure, but also firms in supply chains and wider business communities who are also feeling the devastating impacts of these restrictions.”
Mr Knowles said: “After a desperate 2020 for businesses and communities, a third national lockdown is another devastating blow to business confidence as it follows hard on the heels of lost trade during the festive season – not to mention the uncertainty that prevailed up until the eleventh hour of the Brexit transition period.
“The Government’s need to act in the face of spiralling threat to public health is obviously understood but after already spending billions on helping good firms to survive this crisis and save jobs, it must not let these companies fail now when the vaccine roll-out provides light at the end of this long, dark tunnel.
“The Chancellor’s announcement of a one-off £9,000 grant for retail, hospitality and leisure businesses will hopefully help keep their heads above water for a couple more months, but Westminster must remember financial support – while certainly welcomed and required – is no substitute for a fully open economy that allows businesses to generate their own revenue.
“It’s now time for the Government to open the lines of communication with businesses by sharing its plan for how the brakes will be lifted on the economy over the coming months to allow businesses to plan properly.”
The grant payments will cost the Treasury £4.6 billion and will help prop up the high street as new lockdown measures announced on Monday take hold.
Rishi Sunak also announced a further £594 million for councils and devolved administrations to support businesses not eligible for the grants.
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The Scottish Government will receive £375 million, the Welsh Government £227 million and the Northern Ireland Executive £127 million.
Mr Sunak said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.”
The payments will be based on the size of each store, pub, cafe or hotel tied into the business rates typically paid by each business. The smallest sites will be able to claim up to £4,000 and medium-sized ones £6,000.
However, the Chancellor stopped short of extending the business rates holiday, which ends in April, despite calls from retail and hospitality leaders for such a move.
Other noticeable absences being called for by business groups and unions include a VAT cut and improvements to sick pay or support for working parents.
On Monday night Helen Dickinson, chief executive of the British Retail Consortium, said: “The biggest difference the Government can make is to extend business rates relief from April for those hardest hit by repeated lockdowns.”
According to real estate specialists Altus Group, 401,690 non-essential shops, 64,537 pubs/restaurants, 20,703 personal care facilities and 7,051 gyms and leisure centres are now closed.
The new one-off grants come in addition to grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.
The Government has already provided £1.1 billion of discretionary funding for councils, extended the furlough scheme until April and taxpayer-backed business loans until March.