Hampshire: 60% of companies 'at risk of going under'

Around six out of 10 businesses in Hampshire believe they are at risk of going under because of the economic impact of the COVID-19 pandemic.

That is the stark picture revealed in early results from a two-part survey of members by Hampshire Chamber of Commerce.

The findings are among the first in-depth insights into how the virus is affecting companies across the county and the extent to which they are relying on government support.

More than 110 online respondents answered 17 questions covering issues such as furlough, lay-offs, home working and take-up of the business interruption loan scheme and small business grants.

57% say they are at risk of closure or insolvency, despite state intervention, with most saying the next three months are the critical period.

Nearly seven out of 10 firms say they have furloughed some of all of their workforce, with 20% forced to lay people off.

Home working has been introduced to a greater or lesser extent by nine out of 10 respondents.

Service companies and manufacturers are among those who have responded to the survey.

Most are businesses with 50 or fewer employees, while 57% have a staff team of 10 or fewer.

On furlough, 55% of respondents said they were accessing the government’s Coronavirus Job Retention Scheme to claim wage contributions.

24% are planning to use CBILS, the coronavirus business interruption loan scheme, while 28% have applied for help under the Small Business Grants Fund.

Hampshire Chamber chief executive and executive chairman Ross McNally said: “Our members are doing all they can to safeguard jobs and stay afloat in one of the most extreme crises anyone in business has ever faced.

“Our survey represents the first Hampshire-based evidence of the impact of the lockdown on business activity and the likely take-up and intentions regarding state support schemes.

“The government’s measures are of course welcome but they must be available on the ground quickly and immediately to minimise job losses and business failures.

“We call on ministers to continue business support while safely reopening the economy in stages in line with medical advice.

“Beating the virus remains the top priority. Once that is done, we stand ready to return to our workplaces, rebuild customer bases and reopen supply chains.

“We must be confident that in time we can maintain our economy on a high-growth, high-wage and high-employment trajectory.

“Survey results give us and other business support organisations the essential evidence we need to keep pressing government on their strategies to safeguard the economy.”

Hampshire Chamber has just launched the second part of the survey, including more questions about accessing government support, at www.tinyurl.com/y996teo5.