Noticias de la Cámara

BCC Coronavirus Business Impact Tracker: First results show heavy toll on UK business communities as majority of firms face cash flow crisis

02/04/2020 Chambers_british_logo _1_1_3

Results from the British Chambers of Commerce's first Covid-19 Business Impact Tracker paints a concerning, if unsurprising, picture for business communities affected by Coronavirus.

- Sharp and significant fall in domestic and overseas revenue for UK businesses
- The majority of firms (62 per cent) have three months’ cash in reserve or less
- Almost half of respondents (44 per cent) expect to furlough at least 50% of workforce in the next week

The BCC’s new tracker will serve as a barometer of business’ response to the government’s measures and changes to business’ working practices over the next few months. It will also track how quickly new government interventions, introduced to deal with the real-world impact of this crisis, are getting to the businesses at the front line.

The first set of polling was conducted from 25-27 March with responses from over 600 businesses. It revealed that a majority of firms reported a significant decrease in their revenue from both the UK and overseas. 

Cash flow concerns

Of most concern is the impact on business’s cash flow, an important indicator of overall economic health. 18 per cent reported less than a month’s worth of cash in reserve, while 44 per cent reported only 1 to 3 months’ worth of cash in reserve. Only 6 per cent of respondents reported over 12 months’ worth of cash in reserve.

Businesses furloughing employees

Following the government’s pledge to cover 80 per cent of a furloughed employee’s salary up to £2,500 a month, 32 per cent of respondents said that they were planning to furlough between 75 to 100 per cent of their workforce over the next week. More than a quarter of firms (26 per cent) were not due to use the scheme in the next week.

Changing work practices

A majority of businesses have embraced the changes in working culture, with two thirds of respondents (66 per cent) using remote working and half (50 per cent) using videoconferencing.
However, 18 per cent of businesses had closed operations temporarily and, although no respondents had yet closed business operations permanently, both figures are expected to rise over the coming weeks and months.

Awareness of government support schemes

Encouragingly, most businesses reported awareness of the government’s recent support schemes to help mitigate the impact of coronavirus.

  • 61 per cent of firms knew details of the business rates holiday for the retail, hospitality and leisure sector
  • 59 per cent of firms knew details of the Coronavirus Business Interruption Loan Scheme
  • 57 per cent of firms knew details of the Statutory Sick Pay refund

The percentage of firms actively in receipt of this support was low but this is expected to rise in the coming weeks following the government’s official launch of the Coronavirus Business Interruption Loan Scheme and Job Retention Scheme on Monday 23 March.

Responding to the tracker results, BCC Director General Dr Adam Marshall said:
 
The Coronavirus pandemic has taken a heavy toll on business and economic activity across the UK. While businesses have welcomed the unprecedented size and scope of the government support packages, our findings highlight the urgent need for that support to reach businesses on the ground as soon as possible.  The majority of firms cannot wait weeks or months for help to arrive.There’s no escaping the scale of the challenge UK businesses are facing, yet many are already finding ways to contribute to the national effort to tackle coronavirus. Chambers and their members are working together to play their part, including gathering unused PPE equipment from local businesses and delivering them to the NHS. I’ve no doubt we will see further examples of resilience and innovation – the hallmarks of the UK business community – in the coming weeks and months”.


Socios Patrón

  • GSK
  • AstraZeneca
  • Savills
  • Mondragon Corporación
  • Arriva a DB Company
  • El Corte Inglés
  • Cuatrecasas
  • Canon
  • Banco Sabadell
  • Gleeds Ibérica
  • EAE Business School
  • Plain Concepts
  • Selier Abogados
  • Santander
  • PwC
  • JCB
  • Diageo
  • Iberdrola
  • HSBC Bank
  • Telefónica
  • Sage
  • Brico Depôt
  • Oxford University Press
  • Pearson
  • Mitie
  • Hays España

Socios Corporativos

  • Derby Hotels Collection
  • David Lloyd
  • Cubico Sustainable Investments
  • EGD Logistics
  • ACS
  • Araex Grands
  • Allergy Therapeutics Iberica
  • Croda Ibérica
  • ERM
  • Uhy Fay & Co
  • UAL Awarding Body
  • A&O Shearman
  • Menzies LLP
  • Currencies Direct
  • TSL Projects Spain
  • Colt Technology Services
  • IESE Business School
  • Vueling Airlines
  • Parque Tecnológico de Andalucía
  • Grupo Hospitalario HLA
  • Globeducate British International School
  • McArthurGlen Designer Outlet Málaga
  • Gómez-Acebo & Pombo
  • Safetykleen
  • Ferrovial
  • Cabrera Rodriguez ETL Global
  • British Council
  • Brunswick Group
  • BSI Group Iberia
  • Barrilero & Asociados
  • Dukes Education
  • Kreab Worldwide
  • EY
  • Smith & Nephew
  • BDO
  • Ayming España
  • Arup
  • Segro Spain Management
  • BT Global Services
  • Control Group
  • Bunzl Distribution Spain
  • Presstour
  • Berkeley Energía
  • PageGroup
  • CMAC Group
  • Sacyr
  • Cognita Schools
  • Lloyd’s Insurance Company SA, Sucursal en España
  • Adlanter
  • PKF Attest
  • ISP Schools
  • Boult Wade Tennant
  • Gamma
  • AFI, Analistas Financieros Internacionales
  • Lightsource bp
  • Forvis Mazars
  • H10 Hotels
  • Spectrum IFA Group
  • Value Retail
  • Holiday World Resort
  • Rentokil Initial
  • MARCO Agency
  • HM International Patient
  • Kensington School
  • Haleon
  • Panorama Properties
  • De Cotta McKenna y Santafé
  • Flutter
  • Firefly
  • Roman
  • IQS
  • Baker Tilly
  • Gilmar Real Estate
  • CaixaBank
  • Schüco
  • Mazars
  • Barclays
  • Agencia de Innovación y Desarrollo de Andalucía IDEA
  • Grant Thornton
  • Indra Group
  • Aon España
  • Oak House School
  • Brand Finance