A new record may be set for the number of small businesses that will fail in Britain, forced into bankruptcy and closure this year due to the economic issues stemming from the COVID-19 pandemic.
The Federation of Small Businesses (FSB) stated, following a survey, that at least 250,000 small businesses, defined as those with fewer than 50 employees, are expected to cease operations this year after experiencing a decline in sales and difficulties in debt collection during the pandemic. The survey published by the British newspaper "The Times" found that, with the economy closing for the third time since the onset of the pandemic, confidence in the small business sector has dropped to its second-lowest level in 10 years, with the March closure of last year marking the only lower point.
Mike Cherry, Chairman of the FSB, stated that they are at risk of losing hundreds of thousands of viable small businesses this year, which would have a massive cost for local communities and individuals' livelihoods. Cherry added that any action taken in March will be too late to prevent closures, hence it is necessary to reconsider how to address emergency debt relief measures.
