Businesses count the covid lockdown costs

Wednesday 27 May 2020

While nearly half of all businesses have been negatively affected by the covid-19 lockdown, a large number of people have said they would continue working from home at least some of the time if they were able to, once life gets back to normal.

The latest survey run independently by Island Global Research asked businesses in the Channel Islands and Isle of Man what their experiences have been.

1,560 residents responded, including 601 in Guernsey.

Of those who responded, a fifth said they had seen an increase in demand for their business' services during the lockdown - but a third had seen a reduced demand while almost another fifth had seen their operations totally suspended.

Around a third of respondents also needed to access the financial support offered by the local government:

• 14% had to access financial support;
• 12% had to furlough (some or all) staff;
• 4% had to make staff redundant or terminate contracts;
• 13% had taken other cost-saving measures.

45% said had no measures had been taken, and the remaining 24% did not know or preferred not to answer.

Of those businesses which have seen their operations suspended or reduced, unsurprisingly hospitality has been the hardest hit, followed by the construction industry and associated trades.

The finance industry and other 'professional services' saw a large number reporting 'reduced demand'.

Pictured: Paul Whitfield.

Financial support remains open to businesses and individuals affected by the lockdown.

The States business support scheme is now being run digitally to manage the thousands of applications, which have led to millions of pounds already being paid out.

The States Chief Executive, Paul Whitfield also confirmed recently that unemployment has risen 'by hundreds of people' in recent weeks.

Further information on the support available to businesses can be found here. 

Of those people who have continued working during the lockdown, for many working from home has been successful.

42% said the experience had been 'more positive than negative' - while 84% said they would consider working from home either definitely, some of the time or occasionally in the future.