It is widely reported in the press that the UK is only two weeks behind Italy in terms of the mortality rates from coronavirus. We have seen efforts from the Government ramp up, as they try to curb the spread of the virus, with hospitality and leisure businesses being told to close on Friday. However if the UK continues along the same trajectory as Italy, and the number of cases and deaths from coronavirus continue to accelerate in the UK then in all likelihood the Government will require all production and economic activity to cease completely. If this measure comes in, this will have a catastrophic impact on cash flow. See our latest update on the new measures in place in Italy.
We are supporting clients, contacts and businesses a number of ways including:.
- An online contingency planning tool that highlights risk areas to a business;
- Our employment colleagues are regularly producing updates on measures in place to support employers – see their latest alert discussing the measures announced on Friday;
- We have produced a helpful guide setting out what financial support measures the Government have announced, what the eligibility criteria is, and what funding can be accessed now. This is being regularly updated and together with our financial services and banking colleagues are considering any challenges that accessing funding might pose so that we can help businesses overcome those; and
- We have also produced this note exploring the question “How do I know if what I do is an essential service?”
It is important for all businesses in all sectors to consider the impact on cash flow that, if Italy is any example, a total shut down will cause and to take professional advice to help navigate, manage and mitigate risk.