THE end of the furlough scheme could create an ‘autumn storm’.

That’s the view of the Federation of Small Businesses (FSB) who is warning of tricky times ahead for some firms as the Government ends the furlough scheme and other forms of support.

Yesterday was the final day of the furlough scheme, the scrapping of the small employer sick pay rebate and the closure of the Apprenticeship Incentive.

The FSB cited their concerns about the ‘autumn storm’, highlighting numerous challenges as support is withdrawn and other pressures mount up.

These include inflation to staff and supply shortages and energy price spikes, increased VAT, and the prospect of major tax rises and the ending of the suspension of insolvency rules.

They are calling on the Government to increase the Employment Allowance and to replace and reform the New Enterprise Allowance with a rebranded and improved ‘Kickstart Start-Up’ scheme through additional mentors.

This is as well as calling for increased weekly payments, and other support, to keep the Apprenticeship Incentive in place, and to focus this autumn on supporting small businesses to create jobs.

Nicola Bailey, development manager for Hampshire, Dorset and Isle of Wight for the FSB said: “For many small businesses, the end of September will mark a significant turning point.

“With challenges on many fronts, from rising energy and input costs to staff shortages and supply issues, the removal of some of the support measures brought in to hold off the worst effects of the pandemic on businesses will be tough for many to navigate.

“It’s potentially a dangerous moment. As the weather turns colder, so too will the operating environment for many firms.”