Economy

Azets warns of ‘devastating’ economic impact of Plan B on SME sector

Matthew Richards, R&I partner at the firm stated that ‘unclear’ guidance and an increasing ‘lack of confidence’ could have ‘big consequences’ for the business community

Azets has warned that the impact of ‘Plan B’ and the re-introduction of stricter Covid-19 measures could “derail” the UK’s economic recovery and have a “devastating” impact on the SME sector.

Matthew Richards, R&I partner at the firm stated that “unclear” guidance and an increasing “lack of confidence” could have “big consequences” for the business community.

This would also have more of an impact considering support measures such as the Job Retention Scheme (JRS) are no longer available.

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However, Richards said he does not foresee the re-introduction of schemes such as the JRS, under which a business could claim up to 80% of a furloughed worker’s usual wages, via the payroll, of up to a total of £2,500 each month.

He said: “Given the significant amount of money already spent on Covid support measures, such as the Recovery Loan Scheme (RLS) extended into next year, it’s likely the government might well resist bringing back closed schemes.

“This is bad news for businesses operating in a stop/start economy, some of which were only just getting back on their feet.”

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