Many companies face summer fight to survive, warns CBI

THE SURVIVAL of many businesses still hangs in the balance over the summer as Government schemes begin to wind down, a leading business group has warned.

The CBI said firms most affected by the coronavirus crisis cannot wait until the autumn for further action.

Job retention schemes have been a lifeline for many businesses, but despite the gradual re-opening of the economy, a recession is a certainty and unemployment is rising, said the CBI.

Further action was needed to ensure firms survive, including extensions of grant support schemes for smaller companies and business rates relief in England, according to the report.

It comes as airline Jet2 is proposing to cut 102 pilot jobs.

The Leeds-based carrier is not due to recommence flying until

July 15, by which time it will have grounded its entire fleet for more than three months.

It is the latest airline to begin consulting on redundancies as the aviation industry struggles to cope with the collapse in demand caused by the coronavirus pandemic.

Other carriers that have announced job cuts include British Airways, easyJet and Ryanair.

General secretary of union Balpa, Brian Strutton, said: “This is yet more evidence, if it were needed, of the free-fall in aviation and the knee-jerk way airlines are responding, especially as lockdown is gradually being eased.”

He added: “As difficult as our relationship with Jet2 undoubtedly is, the airline plays an extremely important role, especially at airports in the North, and we want it to succeed.

“Once again, I reiterate my call for the Government to step in, call for a job cuts moratorium and work on a strategic support package to help this industry get through this crisis.”

The CBI’s Director General, Dame Carolyn Fairbairn, stressed the Government’s support of businesses during the crisis has saved “countless firms”, but the rising number of redundancies and benefit claimants showed the economic damage caused by the pandemic.

She added: “The survival of many businesses in hard-hit sectors still hangs in the balance over the summer as schemes begin to wind down. These firms cannot wait until the autumn for further action.

“The Government has already shown its ability to be bold and decisive.

“By getting ahead of this tidal wave of economic damage with at scale, at speed, targeted support, it can help businesses survive, protecting the jobs and life chances of a generation.”