BounceBackLoans more time to pay

Welcome news as the Chancellor’s announced that small businesses have been given ten years to pay back their government loans. Source The Guardian

This will be a welcome relief for many businesses who took out the loans that they will have a further six months payment break taking it to 18 months before the first payment is due. Does this address the real issues faced by small businesses or is it simply giving them more rope to hang themselves with? What is needed is a sustainable approach to the UK economy bouncing back. We need clear policies and plans on how we are going to get back to the job of getting back to business. We don’t need promises and false hope we need a strong strategy on how UK businesses will be allowed to open for business rather than handouts and loans which will be needed to be paid back.

The further the Chancellor borrows against the National Debt the greater the problem for the future generations to come. Higher taxes and higher interest rates for years to come. This will see ordinary taxpayer, payer paying for COVID for decades to come.

It may be welcoming news for some of the businesses who took the bounce back loans, but it’s not so welcoming for the many businesses who were left out in the cold to defend themselves and will be faced with higher tax bills and changes in the way taxes are collected in the future. Microbusiness in the most has not have been able to benefit from the support the Chancellor talks about and have been left to struggle through Covid19. I believe that majority of businesses reach the other side we will be faced with greater problems forcing them to increase prices to survive or simply go out of business. In large the extra support, Rishi Sunak talks about has seen many micro-businesses, those who are the sole directors of small businesses left out in the cold. As many have not been eligible to take out the bounce back loans or get any type of funding including grants. Yet they will be left to pay higher VAT, Corporation Tax as well as National Insurance.

Rishi Sunak continues to reinforce the governments pledge that it is doing its bit to help small businesses who are suffering the most, but this is not the case as many small businesses and especially micro-businesses who are the forgotten and who run companies with sole directors with NO staff have slipped through the cracks and are being missed off the list altogether. As they are not eligible for any of the grants already given or for the recent self-employed grants allocated with the recent changes. Many of our members sit in this camp and are struggling to pay their bills and have been left out in the cold and force to battle on regardless, but will be expected to pay the higher taxes when then come in to force and they will as the Chancellor doesn’t have a magic tree, regardless as to whether he thinks he does.

The chancellor is faced with a growing bill for the costly bailout for putting millions on furlough and giving out grants and loans. Many are asking who is going to pay for all of this. Also by giving businesses support to furlough so many for so long is it just putting off the inevitable as employers will be laying people off when the furlough subsidies finish.

He will have some explaining to do when he updates the nation on how the government will deliver the road map for greater prosperous Great Britain post COVID-19 and Brexit.