AROUND 49 per cent of UK businesses could operate at pre-coronavirus-crisis levels with social-distancing rules, but 16% would have to work at less than half-capacity and 6% could not run viably, a survey published today shows.
The Institute of Directors’ poll of more than 800 members highlights the challenges facing businesses and the broader economy when the UK emerges from the lockdown put in place to slow the spread of Covid-19.
Around 23% of those surveyed say they could operate at more than half of pre-lockdown activity levels but at less than full capacity.
The survey shows 53% of UK businesses would take more than a month to return to previous activity levels even if the lockdown measures were lifted altogether and demand were to pick up.
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The survey found that 51% of directors had started drawing up plans in anticipation of the eventual relaxation of lockdown measures but 30% said they had not because they were waiting on government guidance.
The IoD emphasised that, for businesses to continue to operate or re-open, directors would “need to be confident that acting in accordance with government guidance would keep their employees and customers safe”.
It added: “Directors carry responsibility for health and safety at work, and some may not want to open workplaces if they are not comfortable with the level of legal risks.”
The IoD called for the UK Government to be “innovative and agile” and continue to adapt its support for the economy, including the introduction of a flexible furlough scheme. It noted such a scheme would allow firms to furlough workers for a shorter period of time or bring staff back flexibly, while the overall support was tapered.
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Under the furlough scheme unveiled by Chancellor Rishi Sunak in March, the UK Government is paying 80% of the wages and salaries of furloughed workers up to £2,500 a month.
Millions of workers have been furloughed by companies as large parts of the economy have been shut down, and other sectors reduced dramatically, amid the lockdown.
Malcolm Cannon, national director of IoD Scotland said: “We know that it is highly unlikely that we will simply pick up where we left off, going back to exactly what we were doing before lockdown. In fact, we may never return to working in the same way that we did before.
“These figures show that, operationally, our members are having to consider a multitude of factors, with minimal government guidance. Thought must be given to how long it takes to put systems back in place, how and when to re-introduce furloughed staff, which projects can be back up and running quickly and which will need more lead time, as well as how supply chains might be impacted as...suppliers adjust to their own return.”
Jonathan Geldart, director-general of the IoD, said: “Leaving lockdown, when it happens, won’t be plain sailing for business. Social distancing presents an unprecedented challenge for firms, and some may be simply unable to make it work.”
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