British Companies
News UK News

Two Thirds of British Companies Apply for Job Retention Scheme

Two Thirds of British companies have applied for the government’s job retention scheme.

The figure was revealed by the Office of National Statistics (ONS).

A total of 5,158 businesses were questioned by the ONS, in a survey carried out between April 6-19.

The job retention scheme was introduced in a direct response to the coronavirus pandemic.

The government said that it would cover 80% of up to £2,500 per month of a  furloughed employees’s salary.

Turnover Falls For a Quarter of Businesses

ONS research also found that 25% of businesses that were questioned, experienced a drop in turnover.

Overall proceeds had fallen by more than half according to the survey.

More positively, 30% of enterprises said they had been unaffected by coronavirus.

Retention Scheme The Most Popular

The job retention scheme has been the most widely used out all the government’s coronavirus measures.

In total, 66% of respondents said that they applied for the state support.

While in contrast, 56% had sought the deferrals offered on VAT payments.

One in Four Closed For Trading

The ratio of companies in the UK that have temporarily closed,or paused trading was around one in four.

This is the same proportion that was found in a previous ONS survey released two weeks ago.

The UK government also introduced the Coronavirus Business Interruption Loan Scheme to cope with economic disruption.

Up to 80% of this is also government backed.

UK GDP Growth Forecast to Decline

The National Institute of Economic and Social Research has forecast economic difficulties for the UK.

In the first quarter this year, GDP growth is set to fall by 5%.

While the second quarter could see a major economic contraction by 15% to 25%.

Official figures reported GDP growth was pegged at 0.5%, for the final quarter of last year.

Spread the RTN News!

Leave a Reply

Your email address will not be published. Required fields are marked *