“It’s clear small businesses in my constituency and across the country are facing a cash crisis after months of extra restrictions after the first national lockdown.” MP Naz Shah
It’s been revealed that many of the small businesses may not make it to Spring because of government failure to get a grip on the virus and shrinking government support.
New analysis of official data by the Labour Party reveals an estimated 548 of small businesses in Bradford West are worried they won’t survive the next three months. Almost 739 small businesses have seen turnover plummet by more than half – even before the second national lockdown was imposed.
Labour has also revealed that 1455 small businesses in Bradford do not have cash reserves to last beyond three months. Yet the vast majority of businesses required to close have received much smaller grants from government than they did during the first lockdown – with most receiving either just a third or half of what they received in March.
Bradford West has nearly 4,000 small businesses which includes 65 hairdressers and beauty salons, 45 food retailers, 45 Arts and entertainment businesses, 35 clothing retailers, 30 pubs, 30 restaurants, five Hotel & B&B venues and five drink manufacturers.
Naz Shah MP said: “Small businesses are the heart of towns and cities across the country – retailers, pubs, restaurants, manufacturers, beauty salons, wedding venues and suppliers make up the fabric of our proud and resilient communities in Bradford West.
“It is sad to see businesses shut in all but name including the worst affected sectors like wedding venues, leisure, retail and hospitality who have really been forgotten with the inadequate support.”
“It’s clear small businesses in my constituency and across the country are facing a cash crisis after months of extra restrictions after the first national lockdown.
“They have been let down by shrinking government grants which simply won’t cover their rents and overheads leading to businesses taking on debt through “Bounceback” loans. Unless Ministers change course we’ll see high streets crumbling, businesses going under and hardworking entrepreneurs losing their livelihoods before winter is through.”
“Despite this, I’ve witnessed small businesses adapt and step up during this crisis, whether helping to manufacture PPE, offering free meals for children during half term, or changing how they work to keep their customers safe and the wider public safe. I cannot express how proud I am of our communities pulling together.”
Analysis of ONS ‘Business Impact of Coronavirus’ survey
• 15% of very small businesses and 9% of small businesses have low or no confidence of surviving the next three months. If this proportion is replicated in the Bradford West, this would represent almost 548 small businesses.
• 20% of very small businesses and 16% of small businesses saw turnover plunge by more than 50% over a fortnight survey period, before the second national lockdown was imposed. This would represent almost 739 small businesses.
• 10% of very small businesses and 6% of small businesses had no cash reserves, and a further 28% of very small businesses and 32% of small businesses had cash reserves to last them for under 1 month to 3 months. This would represent more than 1455 small businesses.