Coronavirus: firms need 'urgent' support amid stifled cashflow, says BCC

The British Chambers of Commerce (BCC) is calling for “urgent” support to reach businesses on the ground as soon as possible, as it revealed the “heavy toll” the Covid-19 outbreak is taking.

BCC director-general Adam Marshall cites the 'urgent' need for support. Picture: Craig Hibbert .

The organisation said there has been a “sharp and significant” fall in domestic and overseas revenue for UK firms, and nearly two thirds have three months’ or less cash in reserve.

Additionally, it found that 18 per cent have 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.

Additionally, about a third said they were planning to furlough between 75 to 100 per cent of their workforce over the next week.

However, the BCC said it was encouraging that most firms reported awareness of the government’s recent support schemes to help mitigate the impact of coronavirus.

BCC director-general Adam Marshall said: “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.”

But he also stressed the work many are doing to help tackle the disease, such as delivering protective equipment 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.”

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.Subscribe to scotsman.com and enjoy unlimited access to Scottish news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit our subscriptions page now to sign up.

Our journalism costs money and we rely on advertising, print and digital revenues to help to support them. By supporting us, we are able to support you in providing trusted, fact-checked content for this website.

Frank O'Donnell

Editorial Director