Finance
West Midlands’ economy will be the hardest hit
The Covid-19 crisis is expected to hit the West Midlands hard, as new data from accountant KPMG indicates the region’s economy could contract by 9.1 per cent in 2020. According to KPMG’s latest
quarterly economic outlook, the crisis will impact the region more than the UK, where the economy is expected to shrink by 7.2 per cent, and the West Midlands will be unlikely to fully restart until a vaccine or effective treatments for the deadly virus become available.
‘Collaboration between businesses and local government is absolutely critical’
The firm is warning the region
could start 2021 with another negative shock to the economy, due to the end of the transition period with the European Union (EU), with GVA (Gross Value Added) rising by 4.3 per cent next year. KPMG’s forecasts assume that a
deal will be reached by the end of this year and this will enable the UK to trade with the EU with no tariffs or quotas and will cover some services. However, even without tariffs,
some additional trade friction may be unavoidable due to the need for customs and other inspections. Therefore, according to KPMG,
exports are expected to fall back at the start of next year despite some recovery in many of the West Midlands and the rest of the UK’s export markets.
Sector Focus
Karl Edge: Region faces ‘hard downturn’
Karl Edge, Midlands Regional
chair at KPMG, said: “With the automotive and transport manufacturing industries both having experienced a sharp drop in demand, many businesses across the West Midlands are potentially feeling vulnerable and somewhat nervous about the future. “Our region has demonstrated
incredible resilience and resolve in recent years, and it’s home to a number of key players and sectors, so my belief is that we’re in a strong position to weather the storm in the long-term. “However, with the prospect of a
hard downturn, collaboration between businesses and local government is absolutely critical - not only to try and support the people and businesses hardest hit, but also the industries that will create jobs in the future.”
Barclays launch tool kit
Barclays has launched a ‘toolkit’ to help small and medium sized enterprises (SMEs) across the UK get back on their feet after the coronavirus crisis. The ‘Barclays Back to Business’ programme has been designed to
help all businesses, many of whom have pledged to change the way they work in the wake of the crisis. The kit is aimed at helping business owners from farmers to
hairdressers assess the overall health of their enterprise, and create a plan for challenging periods. It includes with various tools, such as a working capital calculator,
cash flow forecasts, and guidance on managing supply chain relationships. Hannah Bernard,head of Barclays Business Banking, said: “We’re
proud to provide a platform for business owners to hone their skills and access vital resources as businesses across the country continue to be impacted by Covid-19.”
August/September 2020 CHAMBERLINK 53
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