economy
One in ten firms cannot implement government guidance safely Most firms are in a position to partially restart operations as lockdown restrictions are eased, according to the latest British Chambers of Commerce (BCC) Coronavirus Business Impact Tracker. However, the research also revealed that one in ten firms cannot carry out government guidance and restart operations safely, mainly due to difficulties in implementing social distancing. The poll, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 609 responses. Encouragingly, the majority of respondents (83%) reported high levels of awareness of the government’s new workplace guidance as sectors of the economy begin to reopen gradually. Just over a third (37%) of respondents said they could fully restart operations by implementing the government guidance, while 45% said they could do so partially. However, due to social distancing guidelines, it is likely that many firms will see a reduction in demand and will not be able to restart at full capacity. The majority of employers (around 70%) have furloughed a proportion of their workforce. Cashpoor firms, with less than three months’ cash in reserve, remain more likely to furlough staff. The number of respondents that have submitted a claim to HMRC and received payment from the The Royal Borough of
Kingston
Chamber of Commerce
government’s Job Retention Scheme is around 85% – a significant increase from the 73% recorded in the last BCC tracker survey. The furlough scheme continues to prevent firms from having to make redundancies, with very few respondents making any. Employers welcomed the extension of the furlough scheme in some form until the end of October. The survey also highlights encouraging take-up of the government’s Bounce Back Loan Scheme, with more than half (54%) of respondents who attempted to secure a loan reporting success. This is an increase on the 26% recorded in the last BCC survey. Just over a third (38%) were awaiting a decision on a loan, a decrease on the 58% noted in the previous poll. Commenting on the results, BCC director general Dr Adam Marshall said: “While businesses have welcomed the publication of official guidance on how they can reopen premises and restart operations, some sectors still require greater clarity from the government on when and how they will be allowed to do so. This is particularly the case for hospitality and leisure companies, which will not reopen before July at the earliest.
“Companies at all levels of readiness to restart, of all sizes, and in every part of the UK will need sustained government support as they navigate the “new normal” with reduced demand and restrictions still in place. Many support schemes will need to be adapted and updated, but must not be withdrawn prematurely. “HMRC and the Treasury deserve enormous credit for the successful rolling out of the Job Retention Scheme, which is helping huge numbers of businesses to protect livelihoods. “But the message from firms on the ground is clear: the furlough scheme must become more flexible if it is to help companies bring employees back to work successfully. Furlough has helped businesses to avoid millions of immediate redundancies – and now must be adapted to help firms keep as many of these jobs as possible as they restructure and reconfigure post-lockdown. “Our results show that the Bounce Back Loan Scheme is continuing its encouraging start. Yet there are many firms out there who are not in a position to take on debt, so the government must consider further expansion of grant schemes to ensure that as many businesses as possible get access to the support they need.”
BOROUGH BUSINESS - The voice of Kingston’s business community
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