Business leaders are asking for more help from the government in the wake of the coronavirus crisis.

The Isle of Man Chamber of Commerce has carried out the first in what will be a regular series of Covid-19 business impact tracker surveys with more than 400 businesses contributing to the poll.

The results paint a concerning picture for the economy and come after the number of unemployed shot up from 389 in February’s figures to 850 in March.

The lockdown means that the number out or work is likely to rise.

Chamber of Commerce president Caren Pegg said: ’The coronavirus pandemic has already taken a heavy toll on our local economy.

’While Chamber welcomed the financial measures Isle of Man Government put in place, the findings of our first impact tracker survey highlight the urgent need for that support to reach businesses on the ground as soon as possible.

’It is clear that many businesses, particularly small organisations, cannot wait weeks or months for help to arrive.

’There’s no escaping the unprecedented scale of the challenge that all Isle of Man businesses are facing, and the focus not only needs to be on the immediate support required but also on a mid to long term plan for the economy.’

Most of the businesses in this first survey were small businesses (comprising fewer than 10 employees) and businesses that operate in sectors that have been hit straightaway due to the restrictions put in place such as hospitality, construction and retail.

The main points from the first survey (carried out from April 1 to 7) include:

â?¢Of most concern is the impact on cash flow, an important indicator of overall economic health. Ninety per cent reported that their revenue has decreased since the crisis hit, while 40% reported less than a month’s worth of cash in reserve, while 33% reported only one to three months’ worth of cash in reserve. Only 6% of respondents reported more than 12 months’ worth of cash in reserve.

â?¢Most participating businesses have experienced a sharp and significant fall in revenue,

â?¢The majority of participating businesses (78%) have three months’ cash in reserve or less.

â?¢Following the government’s pledge to provide businesses with a flat-rate contribution of £280 per week for every full-time equivalent staff member (and on a pro-rata basis for part time employees), 30% of respondents said that they were planning to furlough between 90 to 100% of their workforce over the next week.

â?¢Twenty-six per cent of businesses that took part in the survey reported that they are planning to reduce their workforce over the coming week.

â?¢On the issue of business continuity, 42% of respondents said they have had to close their business in the last week, and 14% reported that they are considering closure.

Many of those included in these results have had to close due to lockdown regulations including businesses in construction, tourism and hospitality, health and wellbeing, retail and tradespeople.

â?¢Most businesses reported awareness of the government’s support schemes to help mitigate the impact of coronavirus. However, the percentage of firms actively in receipt of this support was low but it is hoped that this figure will rise in the coming weeks following the government’s official launch of the MERA (Manx Earnings Replacement Allowance) on April 6 and applications for the wage support scheme being released after the Easter weekend.

The Chamber’s chief executive officer, Rebecca George, said: ’We have designed the surveys to act as a barometer of business’s response to the government’s measures and changes to working practices over the next few months.

’We thank all of the businesses who took part in the first survey, and encourage all businesses on the island to contribute to the next survey so that we continue to compile a detailed and accurate analysis of the impact of the crisis as it develops.

’In particular, we are keen to ascertain if these headline findings are representative of bigger organisations operating on the island given that the majority of businesses that participated in the first survey were small organisations.’