More than a third of firms plan to furlough most or all of their staff over the next week, new survey finds

British Chambers of Commerce findings suggest that at least a third of the private sector workforce will be furloughed and paid through the Coronavirus Job Retention Scheme, costing as much as £40bn over the next three months

More than a third of firms have said they plan to furlough most or all of their staff over the next week, according to new survey data from the British Chambers of Commerce (BCC).

In its latest weekly 'Coronavirus Business Impact Tracker' - which monitors the impact of COVID-19 on businesses and the effectiveness of government support measures, including the Coronavirus Job Retention Scheme - BCC reports that 37 per cent of respondent businesses said they were planning to furlough 75 to 100 per cent of their workforce over the next week, up from 32 per cent of respondents to its first tracker survey published last week.

Commenting on the survey, and other recent polling data on the impacts of coronavirus on businesses, Resolution Foundation Chief Executive Torsten Bell said today -

‘The cost of the Coronavirus Job Retention Scheme depends on firm’s take-up and the length of time workers need to be furloughed for. But with recent surveys implying that at least a third of the private sector workforce could be paid through the scheme, it is likely to cost as much as £30bn to £40bn over three months. The economic and social cost of mass unemployment in the absence of such a scheme would be far, far greater.’

For more information, see BCC Coronavirus Business Impact Tracker (08.04.20) from britishchambers.org.uk