CHAMBER NEWS Chamber reacts to UK-EU trade deal


A “muted and weary cheer” greeted the long-awaited EU trade deal after it was confirmed just a week before the end of the transition period. That was the view of Chamber


chief executive Scott Knowles as he admitted the Christmas Eve announcement represented a relief for companies that had been plagued by ambiguity ever since the 2016 referendum. He said: “A muted and weary


cheer will go up from businesses after four long years of uncertainty and upheaval. “It is clearly good news the UK


and EU have reached an agreement that will let companies get off the Brexit rollercoaster and plan for the future.” Scott warned it “can’t mask


some inconvenient truths”, saying a trade deal didn’t sweep away new trade barriers and bureaucracy, while the onus was still on the Government to provide clarity on processes, software, regulatory regimes and other issues involved with trading across borders.


‘It is clearly good news the UK and EU have reached an agreement that will let companies get off the Brexit rollercoaster’


But with the “political drama” of


the past four and a half years hopefully now concluded, he believes the greater clarity on trading terms will enable businesses to plan and look for new opportunities.


In the East Midlands, this could


include ambitions to become the “logistics hub of the UK” by building on the strategic importance of East Midlands Airport, which is already the UK’s busiest pure freight airport.


Plans for lockdown must be clear


The Government must be ready to clearly explain its plans for easing the national lockdowns to businesses, says the Chamber. A third wave of the harshest restrictions across


England are set to continue until at least 8 March, with Prime Minister Boris Johnson saying he will set out plans for easing them from 22 February. Chamber chief executive Scott Knowles said the


lockdown imposed in early January was a “devastating blow to business confidence”, following hot on the heels of lost trade during the festive season and Brexit disruption. “The Government’s need to act in the face of


spiralling threat to public health is obviously understood but after already spending billions on


helping good firms to survive this crisis and save jobs, it must not let these companies fail now when the vaccine rollout provides light at the end of this long, dark tunnel,” he said. Scott welcomed Chancellor Rishi Sunak’s simultaneous announcement of a £9,000 grant per property for retail, hospitality and leisure businesses forced to close by the lockdown, but warned it was no substitute for a fully open economy that allows firms to generate their own revenue. He added: “It’s now time for the Government to open


the lines of communication with businesses by sharing its plan for how the brakes will be lifted on the economy over the coming months to allow businesses to plan properly.”


Recession may be ‘inevitable’ says chief


A double-dip recession “may be inevitable” after the latest Office for National Statistics research reported a 2.6% fall in GDP, says Scott Knowles. The Chamber chief executive


said the figure for November highlighted the “continuing damage” being done to the UK economy by the pandemic. It was the first dip following six


consecutive months of growth, with Scott saying the decline in output was largely driven by the drag on activity from the second national lockdown as businesses in consumer-focused services endured a particularly difficult month.


He added: “With any post-


lockdown rally in output in December constrained by the tougher tiered restrictions, including the introduction of Tier 4 measures in areas like the East Midlands, the UK economy is likely to have contracted in the final quarter of 2020. “Ushering in the New Year with a


third national lockdown means a double-dip recession in the first quarter of 2021 may be inevitable – particularly if the current post- Brexit disruption persists through the quarter. “A clear and comprehensive plan is urgently needed to support the


economy throughout this year. This should include closing the current gaps in Government support and providing more significant grant funding to support cash-strapped businesses.”


Scott added: “The neighbouring


SEGRO East Midlands Gateway Logistics Park has become a magnet for major consumer brands and logistics heavyweights. The Chamber is firmly behind any potential bid for securing freeport status, which we believe would bring massive inward investment opportunities to the region and ensure we play a central role in Britain’s post-Brexit trading relationship with the rest of the world.”


Funding supports local businesses


East Midlands businesses have received £4bn in funding under the Government’s two largest Covid-19 schemes, new data by the British Business Bank has revealed. The Coronavirus Business


Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) have provided financial support to firms across the UK that have lost revenue and had cashflow disrupted due to the pandemic. In the region, 91,348 loans


worth £2.68bn had been offered by 18 January under the BBLS, which provides a six-year loan from £2,000 for up to 25% of a company’s turnover, with a £50,000 limit. Some 5,273 loans worth


£1.3bn had also been approved under CBILS, which provides business loans, overdrafts, invoice finance and asset finance of up to £5m to companies with a turnover less than £45m. The total number of loans


provided to the East Midlands represents 6% of the national total – roughly in line with the relative size of the region, which represents 7% of the business population.


business network February 2021 37


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