Businesses that can show they can operate safely should be allowed to stay open during the second national lockdown, a leading business figure says.
Stuart Elford, chief executive of Devon and Plymouth Chamber of Commerce said South West businesses, already reeling from the effects of the first Covid lockdown, are now facing another “devastating blow” which could send many of them to the wall.
He said that would lead to a fresh wave of redundancies, despite the Government extending the furlough scheme for workers.
Mr Elford said: “While appreciating the Government has to strike a careful balance between preserving the economy and public health, businesses in the South West will be especially concerned by the latest lockdown which will damage business and consumer confidence.
“Businesses already have depleted reserves will not be able to stand another devastating blow. Those businesses that can operate in a Covid-secure manner should be allowed to stay open.
“The furlough scheme is generous and will hopefully save many individual jobs but businesses have ongoing fixed costs and we face mass redundancies if the businesses themselves cannot survive.
“This is going to be a very tough time for businesses and the Chamber stands ready to support them as best we can.”
Prime Minister Boris Johnson announced on October 31 that the country would go into a second full lockdown from November 5 until December 2, as coronavirus cases continue to escalate. He said it was important to protect the NHS as hospital wards become pressured.
However, the British Chambers of Commerce (BCC) had already written to the Prime Minister asking for fiv business tests to be put in place for any restrictions. They are:
EVIDENCE: Are the restrictions evidence-based and targeted effectively?
CLARITY: Are the restrictions clear and do businesses have time to prepare?
SUPPORT: Is support for businesses commensurate with the impact on them?
TESTING: How will the time be used to fix the Test, Trace and Isolate system?
EXIT STRATEGY: Is there a clear process for increasing and decreasing restrictions?
Giving an initial response to the Prime Minister’s announcement of the month-long national lockdown in England, BCC director general Adam Marshall said: “There’s no getting around the fact that these new restrictions will be a devastating blow to business communities who have done everything in their power to adapt and operate safely.
“Business and market confidence have been hit hard by the unclear, stop-start approach taken by governments across the UK over the past eight months, with little end in sight.
“Many firms are in a much weaker position now than at the start of the pandemic, making it far more challenging to survive extended closures or demand restrictions.
“The temporary extension of the furlough scheme will bring short-term relief to many firms, and responds to chambers’ call for business support to be commensurate with the scale of the restrictions imposed.
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“While there is no substitute for a functioning economy, the full financial support package for businesses facing hardship, whether through loss of demand or closure, must immediately be clarified and communicated.
“Sustained help must be available to employers, to the self-employed and to the many businesses and individuals that have not been able to access any of the Government’s schemes to date.
“The Government must not squander the time afforded to them through another lockdown to enable mass testing and fix test-and-trace systems - which hold the key to a lasting exit strategy for both public health and the economy.
“We will be examining the detail of new restrictions and support carefully over the coming days, together with chamber business leaders across the country.
“Business communities will judge them on whether they are clear and evidence-based - and on whether businesses are able to see when these restrictions may come to an end.”
