As fears grow that the Government is poised to announce a second lockdown across the UK, Edward Winterton, UK chief executive of Bibby Financial Services has called for a regionally targeted extension of the furlough scheme and greater awareness from the Government of the funding options available to SMEs during this period.  

Winterton said: “With a second lockdown now expected across the UK in the coming weeks, it is more important than ever that the Government works to support SMEs. Where previous support was rightly widely distributed, the situation across the country is now very different. 

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“Regions and sectors are struggling to overcome different challenges, from a lack of customers, to late payments. The support that is available to them has to reflect that diversity. 

“While the detail of that support is being refined, the furlough scheme should be extended to cover regional lockdowns so as not to further disadvantage businesses hit hardest by the virus. 

“The Government should also raise awareness of a wider range of funding options for SMEs to help them to navigate through the second wave and take advantage of the opportunities on the other side.” 

Bibby Financial Services survey

Bibby Financial Services’ latest survey found widespread support among SMEs for an extension to the furlough scheme as they continued to be significantly impacted by the pandemic. 

In a recently commissioned poll, Bibby Financial Services found that of the 500 SME owners who took part in a survey:

  • 26% of SMEs cannot conduct normal operations under the 1m+ distancing rules  
  • 32% of SMEs warn social distancing measures have reduced capacity for growth  
  • 14% of SME staff have refused to return to work  
  • 14% of SMEs don’t have capital to buy supplies to fulfil orders  
  • 19% of SMEs have taken on debt to maintain cashflow  
  • 49% of SMEs think it will take more than 6 months to reach pre-lockdown levels of productivity  
  • 35% of SMEs have brought back some staff from furlough  
  • 16% of SMEs want the furlough scheme extended  
  • 11% will make redundancies if the scheme is not extended