“Whatever
money is needed, we will spend it,” the Prime Minister said recently. Welcome
news if you are among the million or so businesses that the Environment Agency thought
would be badly affected by the severe weather. The effects of the severe
weather have added up to a bitter blow to the economy, and have been
devastating to small businesses without the resources to withstand the
financial knock backs. While mobilising the military can offer more practical
help, financial futures are looking very bleak indeed.
Help from
Government Grants
When
the government’s details on the finances were published, they stated that
grants of up to £5,000 would be issued to businesses to pay for repairs and
flood defences for the future. This is in addition to the £10 million to be set
aside for flood stricken farmers, who can apply for grants at the end of
February.
Help with Taxes
Bookkeepers will have taken
note that a tax deferral scheme was also announced, extending by three months
all deadlines for VAT, employers’ NI and Corporation Tax for affected
businesses. The government will also reimburse local authorities for waiving business
rates for a three month period for those businesses.
Support from the
Private Sector
Non-governmental
organisations are also apparently being helpful. Business groups and insurance
companies are getting together to see how businesses can be helped. Following
the example of RBS, Barclays and Lloyds are offering similar interest free
loans from a $250 million pound fund. HSBC, Nationwide and Santander have also
set up support packages and programmes for their customers.
You
will, of course, need to be proactive in pursuing these avenues of support. Your
outsourced bookkeepers are the ones to
talk to about what applications you can make, and how to go about it. It’s
going to take time to administer and issue the grants and other packages so
getting your applications in early is important.
The Role of Social
Media
You
could be considering your social media strategy as well, as this is also playing
a part and in many cases getting more immediate help to businesses. During the
storms many posted on Twitter that they were #openforbusiness despite the
weather, so that their customers could support them. The Flooding on the Levels
Action Group (FLAG Somerset) also used Twitter, as well as Facebook, to inform
local businesses and residents about what was happening and call for specific
support and help, which has been having very positive results in getting much
needed items and voluntary labour to affected areas.
