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Firms begin to reopen but one in ten cannot implement Government safety guidance

Results from the latest British Chambers of Commerce (BCC) Coronavirus Business Impact Tracker reveal that the majority of firms surveyed are in a position to partially restart operations as lockdown restrictions are eased.

  • 83 per cent of respondents report that they know some or a lot of details about government guidance on working safely
  • 37 per cent of firms report they can implement the guidance and fully restart, and 45 per cent report they can partially restart 
  • 85 per cent of respondents have received payment from furlough schemeThe  weekly tracker poll, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 609 responses. 

The eighth tranche of polling was conducted from May 13-15 after the Job Retention Scheme was extended until the end of October.  

 

Encouragingly, the majority of respondents (83 per cent) 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 per cent) of respondents said that they could fully restart operations by implementing the government guidance, while 45 per cent 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.  

 

Some 10 per cent of respondents did not agree that they would be ready to implement guidance and restart operations, mainly citing social distancing as difficult.  

 

A majority of employers (around 70 per cent) have furloughed a portion of their staff. Cash-poor firms, with less than three months’ cash in reserve, remain more likely to furlough portions of their workforce. 

 

The number of respondents that have submitted a claim to HMRC and received payment is around 85 per cent – a significant increase from last week (73 per cent) and the week before (59 per cent). 

 

The furlough scheme continues to prevent firms having to make redundancies, with very few respondents making any.  Employers have welcomed the extension of the furlough scheme in some form until the end of October, and it will be critical to introduce high levels of flexibility if it is to phase employees back into work.  

  

This week’s survey reports encouraging take up of the Government’s Bounce Back Loan Scheme, with over half (54 per cent) of respondents who attempted to secure a loan reporting success, which is an increase compared to last week (26 per cent).  

 

Just over a third (38 per cent) of respondents were awaiting a decision on a loan. This is a decrease from last week (58 per cent).   

 

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.” 

 

He added: ” “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.”  

 

Dr Marshall said the results showed there had been an encouraging start to the Bounce Back Loan Scheme yet may firms could not take on debt and he urged the Government to consider further expansion of grant schemes to ensure that as many businesses as possible had access to the support they needed.

 

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