Swindon & Wiltshire News
Two-thirds of respondents awaiting funds from furlough scheme as payday approaches
The majority of businesses have now furloughed a proportion of their workforce, and are awaiting funds from the government’s Job Retention Scheme to enable them to pay staff, according to the results of the third Coronavirus Business Impact Tracker from British Chambers of Commerce.
The tracker reveals that 66 percent of survey respondents have furloughed staff in anticipation of scheme going live, but that more than half of firms (59 percent) have three months cash in reserve or less.
Two percent of firms surveyed had successfully accessed The Coronavirus Business Interruption Loan Scheme (CBILS), and 15 per cent of those surveyed are now receiving grants.
The business organisation’s weekly tracker poll, which serves as a barometer of the pandemic’s impact on businesses and the effectiveness of government support measures, received 701 responses and is the largest independent survey of its kind in the UK. The third tranche of polling was conducted from 8-10 April.
The slow start in firms successfully accessing government support schemes has continued. Of those who were unsuccessful in accessing CBILS, slow or no response from lenders was cited as the main reason.
This suggests firms could still be having difficulty accessing the support through banks, despite the announcements on April 2 designed to simplify and speed up the CBILS process.
Meanwhile, 15 percent of respondents said they had successfully accessed grants for small businesses, a rise of seven per cent on the previous week.
Twelve percent of respondents said they were unsuccessful in accessing these grants. The overwhelming majority of those who were unsuccessful reported they did not meet the criteria.
BCC director general Dr Adam Marshall said: “Businesses on the frontline need cash to start flowing from support schemes fast.With April’s payday coming up, we are fast approaching a crunch point, and both the furlough scheme and CBILS facilities need to be accelerated.
“While we’ve seen a high number of firms furloughing staff in anticipation of the Job Retention Scheme coming online, it is still unclear whether they will start receiving funds before their payroll date, which could exacerbate the cash crisis many businesses are facing.
“It is essential that the Job Retention Scheme makes payments to businesses as soon as possible. Any delay could mean more livelihoods under threat, more business failures, and more hardship in our communities.”
BCC counts both Thames Valley Chambers of Commerce (which includes Swindon Chamber of Commerce) and Business West as members. Both are offering support and advice via their websites:
https://www.thamesvalleychamber.co.uk/covid-19-business-guidance/
