Government urged to review Covid-19 business loan uptake

HFQ Process Image
HFQ Process Image

Confederation of British Metalforming (CBM) members have called for industry stimulus packages and a review of the viability tests on Coronavirus Business Interruption Loans (CBILS).

More than 200 companies from the fasteners, forgings, pressings, cold-rolled and sheet metal products sector believe if these measures are adopted that it will give industry the best possible opportunity to get started again and bring more people back to work.

CBM bosses are increasingly concerned with the fact that Covid-19 Business Interruption Loans (CBILS) acceptance rates are still only 50% of actual applications, with the government focusing too much on the value loaned as opposed to the poor uptake.

This is being attributed to CBILS being hampered by EU state aid rules relating to ‘undertakings in difficulty’ being followed by the letter of the law in the UK, whereas other European countries are being more liberal in their approach.

Steve Morley, president of CBM, commented: “We would really like to see the same flexibility of approach employed by the banks when considering CBILS/CLBILS applications. These loans can make a huge difference to protecting the future of some fantastic businesses and giving them the chance to recover - that lifeline shouldn’t be taken away because of legislation not fit for the current situation and a viability test based on three years of Brexit uncertainty.

“This review, alongside the Trade Credit Insurance changes due to be announced this week, will build on the platform of support given to manufacturers.”

CBM represents over 200 members, providing the largest collective voice for the metalforming sector.

It provides essential lobbying for the sector, training services, access to knowledge sharing events and support with Climate Change Levy administration, the latter delivering more than £4 million of savings to members every year.

Steve continued: “Going forward, we will be pushing the Government for some form of stimulus to aid all sectors. This will be critical to supporting growth to help markets recover, especially as we are already seeing our European competitors providing assistance to their automotive and aerospace industries. We can’t afford to be left behind.

“With the ongoing trade deal negotiations with the EU in the background, it's clear manufacturing can’t afford a no deal on top of the severe disruption caused by Covid-19 – the path needs to be as smooth as possible”

CBM www.thecbm.co.uk

Company

CBM

Related Articles

Grainger & Worrall invests £5 million in new machining facility

Grainger & Worrall (GW), a UK provider of high precision casting technologies, is to open a new £5 million machining facility at its site in Bridgnorth, Shropshire. The new centre, which will be operational from early 2017, will centralise the company’s machining operations.
7 years ago News
Most recent Articles

Renishaw highlights career pathways in engineering

There is not one singular blueprint that can lead to a career in the engineering industry. It offers a variety of roles, open to people from diverse backgrounds. To highlight the diversity of skills and experiences in engineering, global engineering technologies company, Renishaw, has created the ‘Employee perspectives’ series.
1 day ago News

Login / Sign up