When asked which initiative would be most beneficial to helping their firm trade this year, almost a quarter (24%) of regional SMEs said an extension to the Coronavirus Job Retention Scheme or the introduction of a new scheme to help them retain employees.
Just under a fifth (18%) said they hoped a cut in the VAT rate would be included in the package of measures announced by the Chancellor Rishi Sunak, while one in six (15%) said they would be keen for him to introduce tax holidays.
Although around half (49%) of those polled said they were either ‘very’ or ‘fairly’ optimistic that their firm could trade solvently through 2021 without the support of Government schemes, a sixth (15%) were ‘not very’ optimistic. A third (31%) were undecided, saying they were neither confident nor not confident.
The research also revealed the COVID-19 support measures that East of England businesses had already made use of during the past year. Two fifths (40%) had used the furlough scheme, while one in ten (10%) had accessed Government-backed emergency business funding, for example a Bounce-Back Loan or finance through the Coronavirus Business Interruption Loan Scheme. Meanwhile, 7% of firms had claimed relief on business rates.
Notably, over a third of respondents (37%) said their business had not needed to access any of the Government’s COVID-19 support schemes so far.
Dave Atkinson, regional director for the East of England at Lloyds Bank, said: “Recent weeks have seen East of England firms’ confidence boosted by the successful roll out of the Covid-19 vaccine and a first glimpse of a viable roadmap out of lockdown.
“In order for SMEs to capitalise on this confidence, it’s essential that firms have access to the help they need, whether that’s a continuation of initiatives like the Coronavirus Job Retention Scheme or new tax breaks. Either way, we need to give businesses peace of mind as they continue down the path to recovery.
“Whatever the upcoming Budget announcement may bring, we’ll be by the side of businesses in the East of England, providing the tailored funding and support they need as they plan for the future.”