Three in four UK firms have furloughed staff

The British Chamber of Commerce published a survey of its members which showed that 71 per cent of  firms have furloughed staff, up from 66 per cent last week.

The results, published in its Coronavirus Business Impact Tracker reveal that many are also awaiting funds from the Coronavirus Job Retention Scheme as payday approaches for many.

It showed that cash flow remains a significant concern for many businesses, with six in 10 having less than three months’ cash in reserve.

Results from the fourth weekly tracker show a steady increase in the proportion of respondents furloughing staff in anticipation of the Job Retention Scheme going live this week.

It also showed that 30 per cent said they have furloughed between 75 and 100 per cent of their workforce and that just 28 per cent have furloughed no staff.

Businesses also continue to face a cash crisis, with 59 per cent of firms reporting that they have three months cash in reserve or less. With payday approaching for many firms, the government’s Job Retention Scheme, which began accepting applications this week, has only a short time to get much-needed cash to firms facing urgent financial difficulties.

A spokesperson said: "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."

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 percent 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.”