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Steve Endacott: 'Small and medium-sized business must save themselves'

Government
Steve Endacott
6 April 2020

In the current crisis, the government’s key focus is locking down the country.

Holiday buyers are understandably cautious (Pic:iStock)

To facilitate this, they have generously introduced a short period, where non-essential staff can be “furloughed” and paid 80% of their salaries. However, don’t expect such a generous scheme to be in place for long; businesses should be planning on their staff rejoining the payroll or being laid off before we exit the full impact of the coronavirus.

The government’s next focus will be avoiding large-scale job losses. Large travel firms such as airlines, who employ a lot of staff in the UK and have strategic benefits, may receive further emergency support to stave off collapse. But even this may come at the cost of giving the government substantial equity stakes.