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Only 43% of Businesses Plan to Claim Furlough Bonus

Posted 4 months ago

Only 43% of Businesses Plan to Claim Furlough Bonus
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According to figures released today, almost half of businesses do not intend to claim the £1,000 furlough bonus made available by Chancellor Rishi Sunak. 

In its latest Coronavirus Business Tracker, the British Chambers of Commerce (BCC) collated data from over 500 companies two weeks after the Chancellor delivered his Summer Statement. 

The data also revealed that even fewer businesses want to take part in other coronavirus support schemes. 56% of businesses claimed they were not planning to utilise the Kickstart scheme, while a further 31% reported having never even heard of the scheme. 

According to the BCC the current measures are insufficient in protecting jobs with almost a third of businesses expecting to make cuts to their workforce in the next three months. Some firms have also reported that the coverage from the furlough bonus is not worthwhile and will not fully cover the cost of bringing employees back. 

Over half of firms (55 per cent) have reported a slight or significant decrease in their cash flow since June 2020. Another 24 per cent and 25 per cent respectively said loan and grant schemes had improved their cash flow situation, showing that a number of businesses are still reliant on them.

Commenting on the findings, BCC co-executive director, Claire Walker, said: “Expected usage of schemes announced in the Summer Statement is relatively low, indicating they do not provide the right kind of support for many businesses at this critical time and a rethink is needed.

“With confidence and demand not returning at the scale firms need, the Government must take radical steps to slash the tax burden around employment to help companies pay valued staff. A major boost to the Employment Allowance, and an increase in the threshold for employers’ National Insurance contributions are needed now if he wants to help viable companies save jobs as the furlough scheme comes to an end.”

According to CEO of Nextfin, Sacha Bright: “Although we welcome any extension of funding to businesses in this time of crisis, for me, this furlough bonus will not encourage me to retain someone on, say a £30,000, salary if I do not need them. Frankly, the bonus is a waste of government funds, and will do little to encourage employers who are already struggling, to keep employees on. 

Author: Sacha Bright & Oliver Murphy

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed. Nextfin is not liable for any damages arising from the use of or inability to use this site or any material contained in it, or from any action taken as a result of using the site. 



Tagged: sme furlough entrepreneur business finance alternative finance news



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