One in ten firms say they cannot implement social distancing

Polling from the British Chamber of Commerce has shown that the majority of firms 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.

However 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.

Results from this week’s poll continue to show that 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.

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 Many support schemes will need to be adapted and updated, but must not be withdrawn prematurely.”