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Small businesses face a challenging autumn, warns business organisation

The Federation of Small Businesses (FSB) has expressed concerned about the impact of the withdrawal of Government financial support, including the closure of the furlough scheme, on small businesses.
The FSB has warned of a 'dangerous moment' for small businesses as Government financial support is withdrawn amid increased operating costs PHOTO Adobe Stock
The FSB has warned of a 'dangerous moment' for small businesses as Government financial support is withdrawn amid increased operating costs PHOTO Adobe Stock

Today (30 September) sees the end of the Coronavirus Job Retention Scheme (CJRS), the withdrawal of the small employer sick pay rebate and the closure of the Apprenticeship Incentive, which the FSB says means that small employers could find their operating environment become ‘less hospitable’ as of 1 October.

It warns that businesses are facing numerous challenges on top of this, including increases in VAT, staff and supply shortages, and energy price spikes.

Furlough

The scheme - commonly referred to as furlough - launched in March 2020. It provided 60 per cent of the wages of furloughed staff.

According to HMRC, around a fifth of employees in businesses with two- to-four staff were still on full or partial furlough at the beginning of September. Small businesses have used the scheme more than large firms.

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