Former Business Secretary Greg Clarke said that with revenue collapsing and no knowledge of when normal trading will return, business leaders see no option but to lay workers off now.
The loan scheme that Government announced last week is not enough to counter the crisis and he said that Government must step in using the PAYE system to pay people’s wages for the next few weeks.
The value of the housing market is the basis of the economic confidence of many across the country.
Agents face many challenges over the coming months, including the pressure to keep paying business rates while managing a significant drop in fees as people put plans to move on hold.
If this results in businesses having to lay off staff, how will we support the recovery of transactions when the market does pick up? Business owners cannot afford to lose the skills and knowledge in their existing teams, to have to start from scratch some months later.
Housing remains vital to people’s lives and changing circumstances, therefore Government must find ways to subsidise companies’ salary bill and provide certainty to the thousands of agents out there who will be worrying about their future.
Lord Stuart Rose, former CEO of Marks and Spencer, said this morning that employers who are making the toughest decisions to preserve the future of their business and get through the next two months must look after their workforce wherever possible. He assured business that recovery will come and the staff who are capable and experienced, will be essential in that recovery.
MPs, meanwhile, highlighted Denmark's comprehensive job protection plan, which promises to directly cover 75 per cent of salaries for three months if businesses commit to keeping staff on. The plan was produced quickly, despite having their first reported case of COVID-19 four weeks after the UK.
Ministers are trying to find solutions and the Chancellor Rishi Sunak is due to announce further details later today.
