COVID crisis | UK to experience outbreak of 'Zombie companies'

Earlier this year, Chancellor Rishi Sunak revealed a host of measures, labelled the Coronavirus Job Retention Scheme, aimed specifically at preventing widespread redundancies due to the fallout of the COVID-19 pandemic and the inevitable economic ramifications therein.

Measures included several grants and loans for struggling businesses, whilst the biggest change was the Government-backed furlough scheme, which agreed to pay 80% of worker wages, if companies agreed to keep staff on payroll through the UK’s lockdown.

In May, Sunak again addressed the nation, revealing that significant changes to the scheme would be made. In the briefing, Sunak outlined that, whilst furlough has been extended to a cut-off deadline of October, those who wish to continue utilising the Government-backed funds will have to contribute National Insurance and pension contributions in August and then pay 10% of wages from September – rising to 20% in October.

Looking for more

Jobs | Top areas devastated by COVID

Sunak also emphasised that those who were able to return to the workplace should do so – therefore encouraging companies to once again take up 100% of the payment responsibility for staff. He said the Coronavirus Job Retention Scheme (CJRS) will adjust so "that those who are able to work can do so".

Yet, despite the Government’s preventative measures, many hundreds of businesses have shed staff; BP announced that 1,000 UK-based workers would be cut, food chain Pret A Manger announced the closure of 30 branches and luxury fashion brand Mulberry shed 30% of its workforce, with more cuts being confirmed on an almost daily basis.