Are you furloughing staff? You're not alone….

44 per cent of business planning to furlough at least half of their workforce, British Chamber of Commerce poll finds

Tech providers seeking to protect jobs through the government's new furlough scheme are in good company, with nearly half of businesses polled at the end of March planning to do the same.

Some 44 per cent of 600 private businesses polled by the British Chamber of Commerce (BCC) study said they expect to furlough at least 50 per cent of their workforce in the next week.

Some 32 per cent plan to furlough between 75 to 100 per cent of staff in the same timeframe, according to the survey, which was conducted from 25-27 March.

Introduced on 23 March by chancellor Rishi Sunak, the Job Retention Scheme is designed to encourage UK firms to put jobs on hold during the lockdown. Under the new rules, the government will pay up to four fifths of wages (up to £2,500 a month) for staff that are ‘furloughed', rather than laid off.

According to some reports, the levels of potential uptake uncovered by the BCC survey and others threatens a much higher cost to the Treasury than it forecast.

Capita is among the tech firms that has publicly announced its usage of the scheme, stating on 27 March that some staff not able to work from home would be furloughed. Some 36 per cent of tech supplier respondents questioned in a CRN poll running from 27-30 March said they work for firms that had already furloughed staff (see below).

The BCC survey comes as the government warned banks not to "unfairly refuse" funds under its Covid business disruption loan scheme, which offers SMEs loans of up to £5m.

"Just as the taxpayer stepped in to help the banks in 2008, we will do everything we can to help the banks repay that favour and support the businesses and people of the UK in their time of need," business secretary Alok Sharma said yesterday.

Some 18 per cent of respondents in the BCC survey reported less than a month's worth of cash in reserve, while 44 per cent reported only one to three months' worth of cash in reserve.

"The Coronavirus pandemic has taken a heavy toll on business and economic activity across the UK, said BCC director general Dr Adam Marshall.

"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."