Express & Star comment: Virus having devastating impact on local businesses

While many large firms will be able to weather the storm, the same cannot be said for thousands of small and medium sized businesses, which have been plunged into a critical situation.

For many of them, the lockdown period has seen cash flow severely restricted. Some, finding themselves suddenly cash-strapped, have been unable to pay suppliers. This in turn plunges them into financial difficulties. Clearly, the impact goes all along the chain. It potentially heralds a worst case scenario where every aspect of the region’s economy has suffered immeasurable damage once lockdown measures are lifted.

Hopefully it won’t get to this stage, but there is no doubt that in order to minimise the damage, our local businesses will need to get their hands on every bit of support available to them. In the first instance, help is at hand in the form of two government grants that have been launched with the intention of minimising disruption in businesses’ cash flows.

Lump sums of £10,000, through the Small Business Grant Fund, and £25,000 through the Retail, Hospitality and Leisure Grant Fund, are available for companies to claim through local authorities.

In our region, more than a quarter of a billion pounds has been paid out to thousands of firms.But there are still many more businesses who as yet, have not received a penny. It is true to say that some local authorities have shown themselves to be more efficient than others when it comes to paying out the funding. However, we should not be quick to criticise councils who appear to be behind the curve.

Their task is not an easy one, and there are numerous logistical problems with identifying, contacting and vetting businesses.

The speed at which local authorities have paid out the cash can vary because of the different number and mix of eligible businesses in their area. With that said, it is crucial that businesses get this money in a timely fashion. For some, it will decide their fate.