We need more help over the flooding

By JENNY LITTLE
Updated:

 

Lessons learnt from handling the foot-and-mouth crisis six years ago should be used by the Government when helping small firms hit by the floods.

Man leads horse through floods

Chancellor Alistair Darling last week announced that Revenue & Customs would waive interest on overdue tax bills from businesses affected by recent severe weather. But small business groups insist the Government needs to go further.

Stephen Alambritis of the Federation of Small Businesses said: ' During the foot-and-mouth crisis, the Revenue deferred requests for National Insurance, VAT and PAYE.

'We welcome the fact that the Treasury has seen fit to suspend its penalty regime, but it's not enough. Repeating the offer of 2001 would help businesses with their cash flow and send a strong message that there was help on all sides.'

The federation estimates that up to 100,000 small firms have been affected by the flooding in recent weeks. Large swathes of Worcestershire, Gloucestershire, Oxfordshire and Wales have been paralysed by flood waters, putting businesses in these areas out of action, at an estimated cost of at least £1bn in lost trade.

David Frost, director general of the British Chambers of Commerce, is due to meet small business minister Stephen Timms tomorrow to petition on behalf of crisis-hit small firms, though he does not believe State aid is the answer.

'Firms should not be in the business of cash handouts,' he said. 'The Government should look to the help provided after the foot-and-mouth outbreak. A lot of help was also offered then in encouraging businesses to diversify.'

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