Southall Businesses on the Brink After Support Grant Rejection
Owners having to sell their homes due to debts built up during pandemic
Business owners are speaking out at the 'unfair' way grants have been given out
Business owners in Southall are considering selling their homes and companies to pay off debt racked up over the pandemic after being rejected for support grants.
Traders who describe themselves as micro businesses with turnover between £150,000 to £500,000 a year, and a few employees, have spoken out about how they feel “left behind” and facing business rates and rent bills with no income to pay for them.
The BBC Local Democracy Reporting Service spoke with six businessmen who said they were all rejected for business grants.
They claim to represent more than 200 other businesses around Bridge Road industrial estate in Southall, also given no financial help.
They say the business district hosts 400 businesses and hundreds of jobs rely on it.
Suraj Singh Khurana, owner of Papap Trading Limited, also known as Papa Phones at Kas House, said he had taken out a loan of £37,500 to deal with his mounting debt, and currently owes more than £21,150 in rent arrears to his landlord that he cannot afford to pay.
Business owner Rajinder Singh shared that he owes £10,000 in business rates, six month’s rent – of £4,800 a month – and has amounts owed to suppliers “still pending”.
Others are paying from their savings, or desperately don’t know what to do.
Father-of-one Jharnail Singh added, “We don’t have any option, we don’t have an option but to sell our house.”
Opinder Singh Gulati, owner of Phone Concepts UK Limited at Southall Enterprise Centre, said, “Our situation is a bit sad…when I hear the news the Government thinks everybody has got it, they are happy with what they’ve done.
“They are not aware there are so many people left behind. We need to be covered as well.”
Suraj added: “My shop is closed forcibly by law, we are asked for business rates, my landlord is asking the rent, I have to eat as well, I have to pay my mortgage as well.
“How can you expect, how do you cover all this? We are not growing money at home.
“[We’ve got] no answers, no-one wants to take responsibility.”
Walking around the centres, many shutters are closed but business owners continue to go down to their stores to do paperwork, clean, and check everything is in order due to a number of burglaries they say happened at the beginning of the pandemic.
Suraj also explains he doesn’t want to stay at home and pass on the negativity and worry to his wife and children.
Down at the site, police officers are described as watching them “like eagles” to make sure their retail units are shut, adding further feeling they are being unfairly treated.
Most of the business district has been shut down due to lockdown
According to Ealing Council, its officers have supported police in carrying out inspections at the industrial estate, following a “high number” of breaches in the local area.
A spokesperson added: “We have sympathy for every local businesses, but it is vital that everyone follows the Government’s rules whilst we are still operating under COVID-19 restrictions.
“A number of warnings have been issued alongside advice on how to comply with restrictions but unfortunately in some cases businesses have continued to ignore restrictions and have subsequently been fined.”
The businesses are majority retail enterprises, selling to other businesses or walk-in customers, but also operate 20 per cent to 30 per cent typically wholesale. They said the wholesale side of the business and occupying a warehouse premises are the reasons they have been denied grants.
Under government Covid rules, warehouses are allowed to stay open which makes them ineligible for the initial Local Restrictions Support Grant scheme, but despite this, these Southall businesses are highlighting they are also being treated as retail with enforcement ensuring they are closed.
They have also hit out over the “confusing” allocations as some businesses in the centres have been given grants, despite also being part wholesale and occupying warehouses.
Opinder said: “They are categorising us with big companies like Asda, Tesco, Cash and Carry, Majestic Wines…That was really disheartening for everyone.”
And of the grants he added: “One shop got it, one shop didn’t, same kind of businesses.”
The group said they have written “hundreds of emails” to Ealing Council and have contacted Southall MP Virendra Sharma for help, who has passed on the concerns to Chancellor Rishi Sunak – with no replies so far.
They have also applied for a more recent Additional Restrictions Grant, which is currently being processed by Ealing Council across the borough.
However Suraj has warned, even if this grant application is approved, it is a minimal amount compared to his financial burdens.
An Ealing Council spokesperson said: “Since the start of the pandemic the council has supported businesses with more than £108million in direct grants over approximately 17,000 payments, with a further £59 million paid in reliefs. We remain committed to providing support to the local economy wherever possible during this unprecedented time.
“We are looking into the cases of these businesses to see if there is additional advice, support or guidance we can provide and are still processing a number of applications for some businesses.
“However, the application process for the issuing of grants is set out by government and the council does not have discretion on any of the lockdown period grant schemes.”
A government spokesperson for the Department for Business, Energy and Industrial Strategy, said: “We know this is a very challenging period for businesses across the UK – including warehouses and wholesalers – which is why the government has provided an unprecedented £352 billion package of support, including furlough, loan schemes, business rates holidays and VAT deferral – all extended recently in the Budget.
“We have provided more than £138 million in grant funding to Ealing Council since the start of the pandemic to support businesses, including those that can remain open but are still impacted. It is at the discretion of local authorities to use this government funding to support businesses in the way they see fit.”
Anahita Hossein-Pour - Local Democracy Reporter
April 1, 2021