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Over 2m jobs to be lost after furlough

by LLB staff reporter
24th Jun 20 12:44 pm

A quarter of all 9.1m workers who are currently furloughed could lose their jobs as 25% of businesses are set to cut furloughed roles when the support stops.

A poll conducted by Market Finance Ltd interviewed 2,000 business owners and learned that 25% are planning to cut furloughed jobs by September.

They also found that nine out 10 businesses are still yet to be paid for work prior to the lockdown on 23 March and therefore have cash flow problems.

The survey found that, 90% of companies are still waiting to be paid for work undertaken prior to the coronavirus pandemic shut down the economy in March.

Around 45% of companies anticipate they might bring back up to half their furloughed staff in July.

Also the survey discovered that businesses are still waiting to be paid an average of £148,917, on average for work undertaken for customers before the lockdown started.

Despite the government reopening the economy the poll has found that it is too late for many businesses, and there will be lasting damage for small businesses.

There is increasing concern that job losses due to the pandemic could be far worse than initially feared, threatening the recovery of the economy, the Bank of England have warned.

Anil Stocker, CEO at Market Finance said, “The reopening of the UK’s high streets marked the first buoyant moment for UK businesses in months, but it might well be the calm before the storm.”

“Businesses are facing a three-pronged assault on their finances.

“First up, its alarming that only half of their CBILS loans are being granted, then we learn that they have close to £150k in outstanding payments since the lockdown began, and now it’s likely that they will have to wait twice as long to get paid for new work they do whilst demand and economic activity normalises.

“Coupled with a very moderate outlook for trading conditions, ‘rent quarter day’ this week and uncertainty about their workforce; no doubt this will put further pressure on businesses.”

The Chancellor Rishi Sunak will stop the furlough scheme by October.

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