Archway Town Centre Group chair Jan Tucker (centre): ‘I don’t know how long businesses can last in Archway. Some won’t be able to’

BUSINESS groups say an extended lockdown could “devastate” small and independent businesses, with some firms already unable to access grant funding and concerns persisting about how long it will take to access furlough funds.

The government’s job retention scheme opened on Monday and saw tens of thousands of applications within the first few hours.

The scheme is designed to avoid job losses, with businesses encouraged to keep staff on their books during the coronavirus lockdown, while the government pays 80 per cent of their wages – up to £2,500 a month.

Early feedback from business groups indicates access to the furlough scheme is working, but after the UK’s most senior medic, Professor Chris Whitty, indicated on Wednesday that social distancing measures may have to be in place in some form throughout 2020, there are still concerns about the long-term future.

“It’s a waiting game now,” said Archway Town Centre Group chair Jan Tucker.

“A lot of businesses accessing the furlough scheme are still paying their staff, paying out first and waiting for the government money to come through to cover that. But now they’re talking about this lasting at least until the end of the year. I don’t know how long businesses can last in Archway. Some won’t be able to.”

She added: “The furlough money will help, and the grants through the council for those who can access them. But it could be that landlords will have to reduce rents for businesses.

“It’s complicated for everyone involved. Independent restaurants and pubs will be the hardest hit. Social distancing will keep people away, and they will be the last to reopen. It’s a worrying time.”

Angel.London chair Christine Lovett said the furlough system was proving “fairly robust” for companies accessing it this week, but added cash flow was “the most critical issue” for businesses in Angel, particularly small and medium firms.

“Many operate on tight margins and the forced closure has understandably had a drastic effect on cash flow,” said Ms Lovett.

“The opening of the furlough portal is a positive step forward to help businesses. I’m pleased to say that Islington Council has been able to process over 2,600 applications and distributed grants with a value of over £43 million to Islington’s small businesses and many within the local retail, leisure and hospitality industry.”

But she added: “We are aware that many businesses in the Angel are simply not eligible for these grants due to the business rates plateau the government set when announcing the support schemes. Therefore, many of our local, independent businesses are excluded from accessing grants.”

Helena Farstad, of the Stroud Green Road Traders Association, told the Tribune businesses would be forced to adapt to survive.

“Some businesses have been able to keep staff because they have reinvented themselves during the crisis,” said Ms Farstad. “There are cafés that have turned into retail spaces, for example, and the council is engaging with businesses to see how the future will look, and what can be done to help businesses change their business models.”

She added: “The challenge is that we don’t know what the future will look like in terms of whether big groups will be permitted, or whether the two-metre rule will stay in force.

“The biggest issue will be how much disposable income people have to spend.”

Islington Council has already processed £10m of business relief grants. Those who have not yet applied, should go to www.islington.gov.uk/business