The GSLP’s extension to the financial year has paralyzed expenditure in a number of government departments as it prepares for an economic hit brought on by coronavirus.

But many small businesses reliant on government funding for the payment of salaries and other expenses have been met with ruthless regulations that have removed their once secure lifeline.

LOOPHOLE

The strain on the economy during the lockdown has already taken casualties in the private sector, with several businesses forced to shut up shop. There are some that have fallen outside the safety net provided by the government’s Business Employee Assistance Terms (BEAT) COVID-19. A number of those businesses on the brink of collapse desperately needed to cover rent and wages but found themselves without the necessary government funds to cover the costs.

Business owners falling outside the loophole complain of coming across more obstacles than ever before, while their calls for help during the global pandemic remain unanswered. Those suffering from increased red tape formed by the COVID-19 regulations complain of inconsistencies in government funding, claiming that some receive more government assistance than others. There is also discontent on the tough stance in denying funds by using the health crisis as an excuse, when they feel it should be a time to support the ‘little man’.

FINANCIAL YEAR EXTENSION

Due to the economic crisis brought on by the pandemic, the government decided to extend the financial year of 2019-20 until September. This has inevitably had a knock-on effect on the funding destined to help members of the business sector as well as the community at large. The civil service in this area had made plans prior to the global pandemic and believed that they would be kept to until sharp changes were made within a short timescale.

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26-05-2020 PANORAMAdailyGIBRALTAR