Grants to Help SMEs

In the current social and economic climate, it is now more important than ever that the Government steps up support for small construction firms, as there is risk of a crash similar to that experienced during the financial crisis of 2008/09.

During this time, more than half a millions workers left the construction industry, according to the Federation of Master Builders (FMB) in response to the construction PMI data published on Monday, April 6^th 2020.

The new data shows that construction activity in March fell at the fastest rate since April 2009.

Chief Executive of the Federation of Master Builders (FMB), Brian Berry said: “This data is shocking but sadly not surprising. In just he first month of this outbreak, construction output has fallen at the fastest rate since the financial crisis a decade ago. It reflects what we have been hearing from our members, 60% of whom have had to stop the majority of their work, to protect their workforce and their clients during the coronavirus outbreak.

“While Government advice remains to keep sites open, for many firms this is unfeasible and unsafe. Most domestic sites are closed, and even our house building members are struggling to keep going as materials are in short supply. This is having a big financial impact on the sector, particularly on small and medium-sized firms who make up the vast majority of the industry.”

Mr Berry added: “Cash grans not linked to business rates – almost 90% of small builders don’t operate from a office – are needed no to bring SME construction back from the brink. The FMB stands ready to work with Government to develop this support stream. The loan scheme isn’t working for our members, and delays to bring other cash support online could prove terminal to hardworking building firms up and down the country.”

If you would like to read more articles like this then please click here.