The cost of living crisis means half a million small businesses have 'weeks left before they run out of cash', according to an expert. Although the Chancellor's £15bn package of support for consumers is a positive, Martin McTague - the chairman of the Federation of Small Businesses (FSB) - has warned that employers need a helping hand to keep people in work.
Speaking to the BBC's Today programme on Radio 4, Mr McTague was careful to praise the Chancellor help package. However, he added: "But there is still a massive problem with small businesses. They are facing something like twice the rate of inflation for their production prices, and it’s a ticking timebomb.
"They have got literally weeks left before they run out of cash and that will mean hundreds of thousands of businesses, and lots of people losing their jobs. It is a very real possibility because … they don’t have the cash reserves. They don’t have any way they can tackle this problem.”
