Close Menu
No.1 in UK for Limited Company Liquidations
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Lockdown Grants ‘Won’t Be Enough to Save Some Firms’

By Jon Munnery
5 January 2021

The government’s pledge to provide grants in support of businesses affected by the latest lockdown measures in England will not be enough to save many firms across the country.

That is the view of the British Chambers of Commerce (BCC), which has welcomed the promise of a fresh round of financial support for struggling businesses but called for more of an over-arching strategy from the government to help companies survive the Covid-19 pandemic.

Chancellor Rishi Sunak said the government will be providing £4.6 billion in grants to protect businesses and jobs after the prime minister announced another strict lockdown would be necessary throughout the early months of 2021.

The grants are intended primarily to help businesses in the retail, hospitality and leisure sectors, with companies able to claim up to £9,000 per property as one-off payments during the latest lockdown.

However, the BCC has called for more support for businesses within supply chains which are also set to feel the financial impact of the strict lockdown that is now in place across England and most of the UK.

According to the BCC, many thousands of firms which are not frontline retail, hospitality or leisure operators could well be devastated from a cashflow perspective by the latest Covid restrictions.

“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,” said BCC’s director general Adam Marshall in a statement.

Mr Marshall called on the government to move away from its “drip feed approach” to providing financial support and towards a more comprehensive strategy that allows businesses to “plan and ultimately survive” beyond the Covid crisis.

“While this immediate cash flow support for business is welcome, it is not going to be enough to save many firms,” Mr Marshall said. “We need to see a clear support package for the whole of 2021, not just another incremental intervention.”

Jonathan Munnery
Partner
Is Liquidation the best option for you?

By completing the test, you will receive:

Your Liabilities & Assets
Types of Liquidation Available
Your Companies Health Risk
Alternatives to Consider
Related Articles
24/03/2021
Spike in Insolvencies and Liquidations Forecast for Later This Year
A significant increase in the number of companies facing insolvency and liquidation is being forecast for later this year after the government’s financial support schemes are wound down.
Read more
28/01/2021
Companies in ‘Significant Financial Distress’ Up by 27 Per Cent
The number of companies across the UK in a position of ‘significant financial distress’ increased by 27 per cent year-on-year between the final quarters of 2019 and 2020 respectively.
Read more
13/01/2021
Record Numbers of Small Firms Could Fold, Says FSB
A record number of small companies could fold over the course of 2021 unless swift action is taken to help them in the coming weeks.
Read more
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout

Looking for immediate support?

Complete the below to get in touch

 
 
 
 
 
100% Free & Confidential Advice