News

10 Jun 2021

Bira calls for extension in Trade Credit Reinsurance Scheme

Bira is calling for an extension in the Government's Trade Credit Reinsurance Scheme.

CEO Andrew Goodacre said the removal of the scheme as planned on June 30, 2021, could not come at a worse time for independent retailers.

In May, the Government announced the temporary Trade Credit Reinsurance (TCR) Scheme would close at the end of this month. At the time, Bira expressed concerns about this to the Government - and, since then, research with our members has confirmed they remain concerned about the end of the scheme.

Andrew said: "Despite the claim that there is a positive economic outlook and no need for this scheme, we have to recognise that any recovery for the so-called 'non-essential' retailers is very fragile. Trade credit is crucial to retail, especially with footfall still 35% below normal levels and restrictions still in place.

"Removal of this scheme at this moment in time is unnecessary.

"Most retailers who have been closed for eight or nine months over the past year will now be submitting accounts showing losses and increased debt. The danger is that the insurers will assess this risk and reduce or even remove credit. We experienced this while the scheme was in place, and fear for the worst once the scheme is closed.

"Our research suggests that 50% of our member agree with us. When businesses are trying to re-build their livelihoods, the last thing they need is loss of credit."

We asked for your views on the end of the scheme here

More about the Trade Credit Reinsurance Scheme here


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