FSB calls for support as cold snap bites
The Federation of Small Businesses has called for government support as businesses are hit by the current cold snap.
The FSB said the severe weather conditions are costing the economy between £600m and £1bn each day and urged Whitehall to act and provide some breathing space for companies over Christmas and the New Year.
In particular, the FSB said the government should extend its Time to Pay scheme to allow businesses time to recoup lost takings. It also suggested local councils should grant hardship relief and temporarily reduce business rate bills for struggling companies.
FSB regional chairman Gordon Millward said: "Small businesses were banking on a good Christmas to make up for a bad year and the prospect of more bad news in 2011.
"Many shops and restaurants have taken on additional seasonal staff to cope with the anticipated demand of the Christmas season, but last weekend saw a drop in footfall of up to 30 per cent, leaving businesses with increased overheads and falling trade.
"The last thing this government needs is a wave of bankruptcies and shop closures in 2011, but small firms will find it very difficult to bounce back in the New Year when VAT increases to 20 per cent and the spending cuts start to bite.
"We need to see a coordinated effort from Government, banks, local authorities and landlords to give small businesses some breathing space to recover in the New Year."
