Responding to the Prime Minister’s statement in the House of Commons, announcing more support for some self-employed people and an extension of the deadline for applying to government loan schemes, Roger Barker, Director of Policy at the Institute of Directors, said:
“Better support for the self-employed is of course welcome, but the government is still failing to fill the significant gaps in the scheme. Many small company directors continue to go without support, it’s long past time to sort this problem. Local authority grants could provide a quick fix.
“The extension of the loan scheme is a sensible step, but it’s just as important that firms that have already taken out loans can reapply. Confirmation on this front is urgently needed.
“With little clarity around firms’ long term viability, the Government must also move quickly to reinstate insolvency protections for directors.
“The big question now is how quickly and how strongly the furlough announcement can factor into companies’ employment plans. Directors understand that the spread of the virus is unpredictable, but with no firm end in sight, more and more firms may already have been forced into difficult decisions.”