May 7 coronavirus update for businesses

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Furlough scheme to come to an end

The government's furlough scheme, which helped subsidise the employees of businesses affected by the coronavirus pandemic, will finish at the end of June.

Simon Mayberry, senior associate at HR and employment specialist LexLeyton, said: "While soundbites about 'addiction' to government financial assistance and the need to 'wean' businesses off the furlough scheme are in poor taste, they do highlight that employers should be putting together clear strategies for returning to work now. The return to work challenge is likely to be more contentious than the initial decision to furlough staff.

"Bringing employees back to the workplace will require all elements of business leadership to work together in order to assess the financial imperatives, the rate at which business will need to come back online, who will be needed and how the practicalities of this can be achieved.

"Finance Directors and HR departments, in particular, will need to work together closely to assess requirements, identify risks and implement the return to work plan that is most appropriate. The mechanics of returning to work and the practical concerns of employees, such as their health and safety, will be of paramount importance. Employers will therefore want to take the time now to investigate how they will meet this challenge."

Landscaping firm secures Barclays loan

Preston-based GSU Landscapes has secured a significant government-backed loan provided by Barclays. The company works with national house builders, as well as private work and arboriculture and has been impacted by the shutdown of the construction industry.

The funding, in addition to a capital repayment holiday on its existing Barclays connections, will enable the company to retain its 60-strong team of staff and to be able to almost instantly gear back up the moment the property sector resurges.

Dominic Munro, director of GSU Landscapes, said: "We run a good business, have 60 staff and a strong business model. However, due to Covid-19, we only had enough surplus cash to last another month.

"This loan has ensured that we can pay our employees, as well as pay our suppliers – some of whom I’ve dealt with the entire time I’ve been in business and have a massive personal relationship with. I’ve been with Barclays 14 years to the day and they’ve always been there to support me every step of the way."

Tom Procter, Barclays relationship director, put together the funding package for the deal and said: "Dom has developed GSU Landscapes into being a thriving and successful business and I am delighted that I have been able to personally help him bridge the cashflow during this pandemic. With Barclays’ support and the ongoing leadership by Dom and the team, I am very hopeful of GSU’s ability to resurge bigger and stronger than ever."

Hardship fund for farmers launched

Dairy farmers will be able to access up to £10,000 each from the UK Government to help them overcome the impact of the coronavirus outbreak. This hardship fund will help support those dairy farmers who have lost significant business following the closure of bars, restaurants and cafes in recent weeks.

Mark Bridgeman, president of the Country Land and Business Association, said: "Many dairy farmers have been experiencing major cashflow problems for weeks due to the food service sector closing down in the midst of Covid-19.

“It’s important that we support our dairy farmers so that they are still able to produce milk for doorstep delivery, retail market and processing into butter and cheese in the future when markets return to normal. These grants will help overcome some of their financial losses, but the situation is urgent for many businesses so they must be straightforward to access and quick to pay out."

New funding to support dairy farmers through coronavirus

Consumers optimistic about recovery

The latest Deloitte Leisure Consumer report has found that the north west is four percentage points more optimistic about the economy's recovery than the UK average.

Spending fell year-on-year across every leisure category, with overall leisure spending in the North West decreasing by 10 per cent quarter on quarter, though the study did capture the start of stay-at-home measures.

Overall consumer confidence at the state of the economy in the North West was low at -67 per cent, though more optimistic than the UK overall at -71 per cent.

David O’Leary, Partner and Head of Retail at Deloitte North West said: “Although these results do not paint the positive picture that we usually see across the region, we are extremely optimistic about the bounce-back of consumer spending in the North West.

"The first thing people will want to do is spend time with family and friends which will drive leisure and consumer spending possibly more than before. The fact that North West consumer confidence is higher than the national average will also give businesses across the North West some much needed optimism during these unprecedented times."