The cost of lockdown: quarter of UK small business “may never reopen”

FSB Survey quarter of small businesses wont reopen
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A new survey by the Federation of Small Businesses (FSB) has found that as many as a third of small business owners believe that they may be at risk of permanent closure as a result of the UK government’s response to the Covid-19 pandemic.

 

Some 40 per cent of the 5,000 companies surveyed by the FSB said that they had been forced to close due to shelter-in-place orders, and of those, 35 per cent claimed to be unsure as to whether or not reopening would ever be financially viable for them.

Overheads were cited as one of the major obstacles for many shops and other small firms: with 25 per cent of respondents saying they were now struggling to meet rent or mortgage payments.

“The impact of the coronavirus pandemic has been felt right across the small business community, with thousands of small firms all over the UK fearing for their futures,” remarked FSB chairman Mike Cherry. “The crucial support that’s on offer needs to be kept under review and adapted to reflect the new normal as we chart a course back to economic recovery.”


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