Foreign media reported that the British Chamber of Commerce said Thursday (18) that it expects 1 in 4 businesses to experience layoffs if the government does not extend the leave allowance program that expires in April.
The British Chamber of Commerce surveyed 1,115 businesses that are members of the chamber between Jan. 18 and 31. 61 percent of businesses said they had been suffering from a sales slump since October; businesses that provide services to the public were hurt the most by the embargo.
Twenty-five percent of businesses said they would have to lay off employees if the leave allowance program was not renewed, and another 25 percent said they would have to cut back on hours in that situation.
The leave allowance scheme has cost the government 46 billion pounds since mid-December last year, making it the most expensive single economic support program in the government. The Office for National Statistics estimated last week that about 18 percent of private sector employees are under the scheme’s support.
Cash flow is also a major concern for businesses, the Chamber of Commerce survey showed that nearly 1 / 4 companies pointed out that there is only enough cash to support the next three months of operations.
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