More than seven in 10 firms have furloughed staff and are awaiting funds under the Coronavirus Job Retention Scheme, according to a British Chambers of Commerce survey.
The Chambers’ Coronavirus Business Impact Tracker found 71% have furloughed staff – up from 66% last week.
It also shows that cash flow remains a significant concern for many businesses – six in 10 say they have less than three months cash in reserve.
The business body’s weekly tracker poll, which serves as a barometer of the pandemic’s impact on business and the effectiveness of government measures, received 678 responses and is the largest independent survey of its kind in the UK.
Results from the fourth weekly tracker show a steady increase in the proportion of respondents furloughing staff in anticipation of the Job Retention Scheme which went live on Monday.
The survey also shows 30% said they have furloughed 75-100% of their workforce but 28% have furloughed no staff.
Business continue to face cash problems, with 59% 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.
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 six 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 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.”
