LONDON (Business) – Over 70% of small and medium-sized businesses in the UK have put at least some staff on leave and await government funds from a business support programme, according to the British Chambers of Commerce.
71% of the firms furloughing staff is up last week’s 66%, while 30% put over three-quarters of their employees on leave until COVID-19’s restrictive measures are lifted.
The programme from the UK government to pay businesses 80% of staff salaries on leave opened on Monday. British Finance Minister Rishi Sunak stated that over a million furloughed staff has raised requests in its first 8 hours.
Government budget forecasters anticipate that 30% of employees could end up on the scheme during a three-month lockdown. This will cost the government approximately 42 billion pounds in the British government’s most expensive programme to support the economy through the coronavirus crisis.
A quarter of UK businesses temporarily stopped trading while the remainder had on average put a fifth of their staff on leave.
The grants cover staff salaries due by the end of the month for firms which apply by Wednesday end of the day.
The government hopes that the scheme will limit unemployment rise during this coronavirus period when output may fall by over a third, and enable businesses to return to normal at a rate quicker once everyday life restrictions are lifted.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.