Helping understand your business as furlough comes to an end

Covid-19 threw a spanner in the works for business owners across every industry and sector. Whether it was delivery companies, care homes and supermarkets becoming swamped with pressure and stock shortages, or manufacturing companies, designers, and pubs losing all of their businesses, lockdown will have a difficult and potentially long-lasting impact on the economy.

The government rolled out a couple of measures to mitigate the immediate pressure on workers, such as furlough pay to business owners. This scheme has meant that 80% of peoples’ salary, up to £2,500, is covered by the government, while they stay at home. It is a lifeline for people in the UK, who no longer need to choose between their health and their survival, which was previously a worry for many. However, as it stands, furlough cannot last forever. Although it was extended in May until October, rather than the end of June, it could still cost up to £80bn, over an eight-month period. To attempt to lower some of this impact, from September, employers will be expected to contribute 10% of employee salaries, and from October, 20%.

What does it mean for your business?

With less business and with money being lost as a result of that after furlough ends in October, many business owners will be finding themselves having to make some difficult decisions. High-quality workers are expensive, and with months out of work, paying them their full salaries will be difficult. On the other side, however, letting go of workers, in this time, may leave them in difficult situations themselves. Moreover, good workers are difficult to find: letting go of people who would otherwise be crucial for the business, may cause problems further down the line. With bankruptcies and redundancies looming, the future, for business owners and workers alike, is cloudy.

Perhaps that star employee who simply isn’t needed right now can be moved into a different department temporarily, where they would be of more use to the company, and still earn a living. Perhaps yearly salaries can be switched to hourly rates, and hours reduced until you start making money again. Perhaps there are grants you can apply to, for an injection of cash. As we can show you, although there are challenges currently, there are also a great deal of solutions.

At Aston Black, we can help you to manage these difficult times. We offer advice to business owners across all industries and have many decades of experience among us. We can assist you with grant applications and use our industry knowledge to share ideas on what similar companies might do. Our small team also means you will be treated with empathy and understanding, and you will receive a far more personalised experience than you would receive in a larger firm.

If you get in contact with us, we will gladly set up a confidential and non-binding appointment to discuss what we can do for you and your company.