FT: APA survey reveals economy faces critical challenges over next 12 weeks due to Coronavirus

The Association of Practising Accountants has surveyed over 880 owner-managed businesses across the UK. The analysis shows that the next 12 weeks will be critical to the survival of many of them.

A third of these businesses have seen turnover reduce by 70% since the lockdown and more than half have less than 12 weeks’ cash in the bank. Most have used the government’s furlough scheme, with 89% regarding it as essential for keeping staff. Only 16% have applied for the Coronavirus business interruption loan scheme, of whom two-thirds said the scheme needed to work better.

Moore Kingston Smith is a member of the APA, with Martin Muirhead as its Chair, who commented: “These figures underpin just how grave the situation is for many owner-managed businesses across the UK right now. There remain real challenges with the various government-backed loan schemes on offer, with many of our clients reporting confusion over assessment criteria or unacceptable delays from participating lenders.”

Full FT article here. Free read.