Chancellor & PM On Right Track - But Clarity still Needed

You would have had to be beyond churlish, or John McDonnell, to not recognise the positives in the announcement Rishi Sunak made last Friday in relation to his bailout for business. In particular those in the hospitality sector were able to breathe a sigh or relief.

However, as the details of the Chancellor's package emerge, there are still some serious questions to be asked of his end game objectives here.

Putting aside the absence of any help for those operating in the gig economy, which I anticipate he will address this week, I am perplexed by the approach being taken in respect of the 'furlough' policy he has introduced.

It is hard to criticise a government plan that is offering business owners like myself the opportunity to pay 80% of my teams salaries. But, this will only be done if I lay them off.

The initial logic in this is obvious. Why should the government still pay my team if they are still working in the business. The reality is somewhat different though.

Like many businesses, I am adapting to the 'new world' by creating work for the DIB team to do. It is necessary work - long overdue back office stuff, additional social media output and future planning- but it is not essential, and it is not generating income.

So, as we go through the next few months my preference is to keep my team busy, but take advantage of some government support. The reality is, as cash flow gets squeezed, I'll have to lay people off in order to get that help.

This isn't a problem for the business, at least in the immediate term. Enough of the team will stay in place to do those essential tasks and support our members accordingly.

What does it do to the morale of those laid off though? Okay, financially they will be fine, but how long before 'relaxing at home' turns to 'climbing the walls'? With a heightened awareness of mental health issues, has the impact of isolation plus idleness not been considered by the government?

And, even if there is no short-term damage to the business, how much harder will it be for those who have had a prolonged period off work to begin to get back into the swing of things with the ability to 'hit the ground running'? Not known for our high productivity levels as it is, will UK plc be plodding rather than bouncing back to work post-Virus?

I appreciate this is a conundrum for the chancellor. Why should he leave the country's finances at risk for unscrupulous business owners to exploit? But I do wonder if some flexibility can be negotiated in the coming days, maybe to include subsidies for those who are moved to part time hours, for example?

From the PM, we have experienced a bumpy ride. Not a month ago 'Herd immunity' was being offered as the quickest way out of the Coronavirus crisis, as he and his officials sanctioned the go-ahead for major events such as Cheltenham and 3,000 football supporters from virus-hit Madrid were allowed into Liverpool to attend a Champions League match.

Now, we're in virtual lock down, although nobody has the definitive guide to who is a key worker! Up until noon today, there was confusion over what the new guidelines meant for separated parents and visitation arrangements. I know that Boris Johnson 'doesn't do detail', but in this sort of crisis situation , he really does need to learn and quick.

I am acutely aware of how challenging any crisis management is. This situation was one that only a genius like Steve Jobs foreseen. Nonetheless, strong and consistent messaging and leadership has never been more crucial for the country. Perhaps we could 'furlough' the PM and get Rishi to take the reins until we beat this thing.