Business is facing the Christmas crisis: Sword of Damocles is hanging from a British company, FSB says
Experts warned that the Damocles sword hangs on small businesses during an important preparatory stage for Christmas.
In a harsh warning, the Federation of Small and Medium Enterprises (FSB) said supply chain stagnation, staff shortages and tax increases could put pressure on businesses.
The lobby group urged ministers to ease the pressure faced by the thousands of companies that make up the backbone of the UK economy.
Warning: A Federation of Small Businesses calling on ministers to ease the pressures faced by the thousands of companies that make up the backbone of the UK economy.
According to the FSB, they have overcome a series of problems caused by the pandemic, and if the government pushes for tax increases and withdrawals of support, companies struggling through Covid could be forced into bankruptcy.
The turmoil caused by the world trade pandemic means that transportation costs are skyrocketing, but some goods are stagnant in ports due to too few truck drivers to move to warehouses. I am.
A toy company character group told email that its shipping costs have skyrocketed six-fold over the past year.
Other companies, from retail stores to restaurants, are having a hard time hiring staff because college students are unlikely to work part-time and many overseas workers are returning home.
And now, as the government raises the price of national insurance that it will have to pay from next year, businesses are approaching another hurdle.
This week alone, tonic maker Fever Tree, hobby group Hornby, and figurine company Games Workshop all warn of pandemic-related issues.
Mike Cherry, FSB’s National Chairman, said:
“The news that the government’s regressive tax will unemploy 50,000 people did not arrive at the worst of times.
“Retailers are nervous at the peak of the Christmas season, and the opaque winter Covid plan could introduce trade restrictions just a week ago. For many, the coming winter will be difficult. It feels like a Damocles sword.
Kiran Shah, managing director of Character Group, said the company is facing a “worst case.”
The company usually plans to first deliver Christmas toys to retailers in August.
“We just don’t have enough goods to supply,” he said. ‘Fares and shipping go through the roof.
“A 40-foot container from the Far East to the UK cost $ 3,000 to ship last November. It’s $ 18,000 this month.”
Cherry has asked the government to raise the employment allowance. Employment allowances are amounts that small businesses can claim to offset their national insurance contributions.
He also called on the ministers to help exporters further and cross the British border to get their goods.
Business is facing the Christmas crisis, FSB says
Source link Business is facing the Christmas crisis, FSB says