Seven out of 10 businesses furlough staff
Seven out of 10 businesses have furloughed staff due to the coronavirus crisis, according to the latest British Chamber of Commerce (BCC) survey.
Results from the BCC’s fourth weekly survey of businesses showed a steady increase in the number of respondents furloughing staff in anticipation of the Job Retention Scheme, which went live on Monday (April 20).
This week, the tracker indicates that 71% of firms have furloughed a proportion of their staff, up from 66% last week.
30% said they have furloughed between 75% and 100% of their workforce. 28% have furloughed no staff.
According to the survey, business continue to face a cash crisis, with 59% of firms reporting that they have three months cash in reserve or less.
With payday approaching for many companies, the BCC has warned that the Job Retention Scheme has ‘only a short time’ to get much-needed cash to firms facing urgent financial difficulties.
Initial reports suggest that the online application portal is meeting business demand, and attention will now shift to whether payments reach businesses as planned within 6 working days of making an application.
Commenting on the results, BCC director general Dr Adam Marshall said: ‘With around 140,000 claims made on the very first day, this is a crunch week for businesses relying on the Job Retention Scheme to pay their staff. Our research suggests that over 70% of businesses will be using the furlough scheme in some form, so it’s absolutely crucial that it delivers.
‘HMRC’s capacity to deal with the demand from business has been encouraging so far – and their staff working under immense pressure to get it up and running deserve our recognition and thanks.
‘It is now critical that payments from the furlough scheme reach businesses as smoothly and as quickly as possible in order to protect jobs and livelihoods.
‘Ministers will also need to consider keeping the scheme in place for longer, to help businesses transition as the lockdown is eased and the economy moves gradually toward a new normal.’
