Earlier quoted context omitted.
Under UK employment laws, you can't just force your staff to take a 20% pay cut without their consent, even if you're using the furlough scheme. And as others have pointed out, it may have been more than 20% in practice, if it was based on the furlough scheme where a cap applies. A lot of places that are genuinely up against it because of the virus are asking staff to take that hit voluntarily to help protect the bus…
>Curiously, just yesterday the UK government announced some new measures aimed directly at supporting startups, particularly tech startups in their early stages that aren't yet making money Do you have a link about this please? Hadn't heard of it until now
It sounds like some sort of investment-matching scheme, where the existing investors have to put more money in to keep the business viable but the government will then make some sort of contribution as well.