Coronavirus: Andrew Rosindell MP urges Chancellor to give more support to Romford’s small companies
PUBLISHED: 10:45 02 April 2020 | UPDATED: 10:45 02 April 2020
Romford MP Andrew Rosindell has written to the Chancellor asking for more support for small limited companies in the town.
He sent the letter to Rishi Sunak on Monday (March 30) and said he was writing on behalf of constituents who own small limited companies and have asked him for support.
The Chancellor has previously announced major economic plans to mitigate the impact of coronavirus, including a support package for the self-employed.
But Mr Rosindell thinks Mr Sunak should go further and do more for those with small limited companies who do not qualify for schemes already announced.
He wrote: “These people are the foundation of the economy and we cannot let them fall through the cracks. It is vital that these businesses are supported at this time.
“The directors who run small limited companies do not all have enough reserves to keep themselves and their business afloat at this time.”
Mr Rosindell added that the “vital” social distancing measures brought in by the Government have “greatly affected” those types of company.
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“They rely on people using their services, but at the moment, they cannot provide their skills and products to carry out their daily business.”
The Conservative MP urged the Government to create a bespoke plan for these companies.
“When you are a limited company, profit and income can vary month by month or job by job,” he said.
Mr Sunak said last week that the Government will pay self-employed people, who have been “adversely affected” by coronavirus, a taxable grant of up to £2,500 a month. This would represent 80 per cent of their average monthly profits over the last three years.
The scheme will be open for at least three months but may not begin until June.
A Treasury spokeswoman said: “We’re taking unprecedented action to support firms, jobs and our economy through £330 billion in business loans and guarantees.
“We are paying 80pc of the wages of furloughed workers for three months, including those in small, limited companies who pay themselves a salary.
“We have also introduced VAT and tax deferrals, increased the Universal Credit allowance, and are covering the cost of statutory sick pay.”
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