Business News
‘Clear guidance’ needed as the lockdown eases
Businesses across the country received much-needed clarity from Boris Johnson on the reopening of the economy, as the government set out its four-step approach to easing Covid restrictions in England. However, business leaders have
warned that many questions still remain on what support and guidance will be made available to firms, as large swathes of the economy are set to reopen in the coming months. From 29 March, outdoor
gatherings will be allowed for up to six people or two households, with outdoor sports facilities also being able to reopen. Step two – beginning no earlier
than 12 April – will signal the return of all retail, personal care, most outdoor attractions, outdoor hospitality and domestic overnight stays. Indoor hospitality, entertainment
and attractions and some events will be allowed to reopen and take place as part of step three, which will take effect no earlier than 17 May. Step four will include the
reopening of all remaining businesses including nightclubs, full
resumption of international travel and larger events no earlier than 21 June. Mr Johnson told MPs that
restrictions will be eased at each stage providing four conditions are met:
• The roll-out of the vaccination programme continues as planned
• There is evidence that vaccines are leading to a sufficient reduction in the number of deaths or people needing hospital treatment
• There is no significant spike in the infection rate that risks overwhelming the NHS
• Assessment of the risks is not ‘fundamentally changed’ by new variants
A five-week period between
each stage and restrictions are to be eased across the whole of England at the same time rather than a return to the regional tiers system. Henrietta Brealey, chief strategy
officer at Greater Birmingham Chambers of Commerce, said that as these new measures come into
“Many businesses will also
understand the need for an evidenced backed approached to implementing each stage - no one wants to see future lockdowns caused by moving too quickly. “As these measures come into
effect it is essential that businesses are given clear guidance and
effect, it is imperative that businesses are given clear guidance and sufficient notice of any changes. She said: “We welcome the
national approach to easing restrictions, avoiding the confusion and lottery of the tiers system.
‘No one wants to see future lockdowns caused by moving too quickly’
Chamber calls for clear guidance: Henrietta Brealey
sufficient notice of any changes to give them the necessary time to prepare. Businesses cannot open and close at the flick of a switch. “Support for businesses, particularly those with fewer than 50 employees, in workplace testing and ensuring the UK’s test and trace service is firing on all cylinders will also be critical to ensuring a safe reopening of the economy. “While a positive step forward,
and testament to the impact already seen from Covid vaccination rollout, today is also confirmation that we are still many months away from being able to live without Covid-19 restrictions. “It is imperative that the
government sets out the support that it will be providing to businesses - particularly those that will be among the last to unlock.”
‘Desperate’ situation as job losses soar
The rise in unemployment in the West Midlands is “deeply concerning” as the pandemic continues to hamper the labour market, business leaders have said in response to gloomy jobs figures released by the Office of National Statistics (ONS). Unemployment in the West Midlands
increased by 1.2 per cent between October and December, well above the national figures of an increase of 0.4 per cent. Employment in the region fell by 0.5 per cent,
compared to 0.3 per cent nationally. However, workers in the region did receive a
pay jump. In the same three-month period, regular pay, after inflation, was up 3.3 per cent on the previous year. Total pay was up 3.8 per cent, helped by
strong bonuses. But job vacancies slumped by 26 per cent
between November 2020 and January 2021, compared to the previous year. Paul Faulkner, chief executive of Greater
Birmingham Chambers of Commerce (GBCC) said that coronavirus restrictions have put otherwise viable businesses into “desperate situations”, with many struggling to stay afloat and retain jobs. He said: “This sharp increase in regional unemployment is undoubtedly concerning. While
6 CHAMBERLINKMarch 2021
the furlough scheme continues to limit job losses, these figures show that the ongoing pandemic has nonetheless significantly impacted the labour market, and especially so here in the West Midlands. “The pandemic and subsequent restrictions
have put many otherwise viable businesses into desperate situations, struggling to stay afloat and retain jobs with little to no income for almost a full year now. “Despite the optimism generated by the
government’s roadmap that was announced yesterday, many sectors now know that they will still be unable to open and trade fully for a number of additional months.” Saira Demmer, chief executive of SF
Recruitment, commented: “The rate of growth in unemployment has slowed significantly since last quarter suggesting that the worst may be behind us. Most major restructures, redundancy programmes and other job losses took place last year, but industries such as hospitality and leisure that continue to be under pressure into 2021 are still seeing a small but ongoing level of job losses. “Employers are responding well to the need to
Some industries still facing job losses: Saira Demmer
protect and engage their existing talent and the 3.3 per cent increase in average pay is a very positive sign for workers.”
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