The Federation of Small Businesses (FSB), Britain’s most influential small business group, is calling on the home secretary to take immediate action to support SMEs affected by the recent wave of rioting across the country. In a letter addressed to Yvette Cooper, a copy of which has been obtained by our news source, the FSB is urging for fair treatment of small and medium-sized enterprises (SMEs) by the insurance industry.
The FSB is also seeking coordinated efforts from the government, police, and crime commissioners to inform uninsured small businesses on how to claim for lost earnings under the Riot Compensation Act. As a result of the violent riots in town and city centers, tens of thousands of SMEs have suffered significant financial losses. Many business owners have resorted to boarding up their shops in an attempt to prevent physical damage to their premises.
In the letter to the home secretary, Martin McTague, the FSB’s national chairman, highlights the fact that FSB members have been on the “front line” of some of the worst disorder witnessed in Britain in decades. He acknowledges their efforts in supporting the police response and helping to clean up their businesses, neighborhoods, and communities in the aftermath of the riots.
Mr. McTague emphasizes the need for local authorities, insurance companies, and politicians to work together to support small businesses in rebuilding and recovering from the damages incurred. He also raises concerns about the insurance industry’s response, citing previous delays in COVID-related payouts. The FSB is seeking government support to ensure that insurance companies handle small business claims promptly and with due diligence.
Furthermore, Mr. McTague highlights the potential consequences for small businesses without insurance, stating that without post-riot support and proper guidance, they may not receive any compensation to restart their operations. He refers to data showing that during the 2011 riots, approximately 5,000 claims were made under the Riot (Damages) Act, with nearly 10% of those coming from uninsured individuals and businesses. The final cost of the damages caused by the current wave of unrest is still unknown, but it is expected to increase significantly if swift action is not taken.
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