Coronavirus: Survey shows that just 5% of small Northern Irish firms axed staff ... but many more may follow soon

That is the picture painted by a new survey from the Federation of Small Businesses, which shows how important the government’s manifold support schemes have been for companies in the Province.

The FSB surveyed 239 companies in Northern Ireland between April 22 and 30 (as part of part of a wider UK survey of 5,471 firms).

The News Letter has delved into the results which show the following:

• 5% have made redundancies;

• Another 41% say they likely will make redundancies in the next three months;

• 1% will not reopen after lockdown;

• And a further 36% are unsure if they will reopen.

The FSB survey was open to firms with up to 250 staff.

The FSB’s Northern Ireland chairwoman Tina McKenzie said: “Many firms in Northern Ireland are concerned about the future viability of their businesses.

“Government, both at Stormont and Westminster, have brought forward considerable support for the small business community, from income support schemes, to cash grants, to help with accessing finance.

“But of course we are acutely aware that many have fallen through the gaps, and the support has been insufficient for some.”

Among the schemes which the government has run are a scheme to furlough staff, allowing companies to keep workers on-the-books whilst the government pays 80% of their salaries.

In addition there are the following:

• A three-month “holiday” from business rates in Northern Ireland (covering April, May and June 2020);

• A £10,000 grant for firms that are currently in receipt of Small Business Rate Relief (affecting about 27,000 businesses and made available from late March);

• A £25,000 grant for firms in the retail, hospitality and leisure sectors with rateable values between £15,000 and £51,000 (affecting about 4,000 firms and available from April 20);

• And a recently announced £40m hardship scheme for microbusinesses which are not eligible for the previous two grants (affecting an estimated 8,000 traders).

Chancellor Rishi Sunak announced yesterday that the furloughing scheme was to be extended.

Specifically he said: “The job retention scheme will be extended, for four months, until the end of October.

“By that point, we will have provided eight months of support to British people and businesses. Until the end of July, there will be no changes to the scheme whatsoever.”

Reacting, an FSB spokesman told the News Letter: “The furlough scheme in particular has been effective at preventing redundancies, hence the low figures so far [when it comes to redundancies], and it was great to see it being extended further by the chancellor.

“However, the furlough scheme cannot go on forever, so businesses will have to find a way to adapt to the new normal, where social distancing and other measures will be required.

“This is perhaps why we see much larger figures for those considering redundancies in the next few months, and those who fear they may not be able to reopen, as the future is far from certain.”

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