Home England government UK government should introduce VAT relief for small businesses, says Tide boss

UK government should introduce VAT relief for small businesses, says Tide boss

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Monday, July 11, 2022 7:00 a.m.

The government should provide VAT relief to small businesses to help them cope with rising business costs, said the chief executive of business banking and financial services platform Tide.

Oliver Prill, who became chief executive in 2018, said small businesses are finding it extremely difficult in the current economic climate and the UK could see a large number of small businesses go out of business as a result.

“We urge the UK government to help small businesses through the crisis by introducing VAT relief for them until the end of the full tax year,” Prill said.

“Small business owners are doing their best to keep their businesses going, including getting help from family and friends, but they need more support,” he added.

According to a survey of 1,170 Tide customers last month, one in five small businesses fear they won’t survive the year as costs soar.

A rise in fuel and energy prices dominated business concerns, while rising inflation and supply chain issues also worried small businesses.

Around 70% of companies surveyed said they needed to increase working hours, while a third relied on friends and family to stay afloat.

The West Midlands and the North East have been hardest hit, with more than 30% of small businesses in these areas saying they may be forced to close in the next 12 months.

Meanwhile, 28.1% of business owners have had to take jobs elsewhere to supplement their income while one in 10 have been forced to downsize.