CHAMBER NEWS
Chamber welcomes Government’s plan to end lockdown
The Government’s decision not to return to tiered coronavirus restrictions has been welcomed by the Chamber after the Prime Minister unveiled his “roadmap” to ending lockdown. Chief executive Scott Knowles said Boris Johnson’s announcement last month, which set out a number of key dates between 8 March and 21 June for reopening the economy, offered some clarity for businesses “after almost a year of hardship”. He said: “Given that the East Midlands was arguably affected
by local lockdowns more than any other region – Leicester has been under the harshest restrictions throughout this pandemic, while Nottinghamshire and Derbyshire were embroiled in huge uncertainty at the back end of last year – all businesses will welcome that there will be no return to the deeply-flawed tiering system. “The principle of caution in how we exit lockdown is
understandable given the events of summer 2020 and need to meet the Prime Minister’s promise for this move to be ‘irreversible’. “At the same time, however, if the Government says it will
slow down the easing of restrictions should the public health picture not progress sufficiently according to its four tests, then it must also be prepared to accelerate the economy’s reopening if the vaccine rollout has a speedier impact than expected.” Scott urged the Government to ensure it continues
providing financial support to affected businesses in industries such as hospitality, events, tourism and aviation. “We also can’t underestimate the impact this period has
had on the mental health of employees, parents, children and business owners, so transparent communication throughout the easing of lockdown will be vital in lifting morale,” he added. “It’s to be hoped this announcement marks the end of the slapdash approach to reopening and closing the economy, giving us all a clear sense of direction for the months ahead. We’re not out of this yet but finally we can begin to see some light at the end of what has been a long, dark tunnel.”
‘Transparent communication throughout the easing of lockdown will be vital in lifting morale’
Chamber chief executive Scott Knowles
Covid-19 recovery may be slow
The economy is ready to “rebound like a coiled spring” after lockdown restrictions are eased, predicts the Chamber as figures showed UK output shrank by 9.9% in 2020. Data from the Office for National Statistics (ONS)
represented the worst annual contraction in GDP since records began in 1955. Chris Hobson, director of policy and external affairs at
the Chamber, said: “These figures confirm what we already knew – that 2020 was a historically bleak year for the UK economy as businesses endured persistent struggle.
‘The scars of forced business closures to combat coronavirus will be felt for years to come’
“To put this data into wider context, the size of the fall in GDP wiped out seven years of economic growth, taking our economy back to its 2013 size, and the scars of forced business closures to combat coronavirus will be felt for years to come. “The positive news is that the UK recorded a
stronger than expected 1% growth in the final quarter of 2020. This was due to the squeeze on output from the November lockdown being more than offset by a
temporary boost from releasing pent-up demand once restrictions eased before Christmas – as well as increased activity from Brexit stockpiling. “However, while we avoided a double-dip recession,
we can expect this modest growth at the end of 2020 to be followed by a substantial fall in output in the first quarter of 2021 as the current lockdown, the unwinding of Brexit inventories and disruption to UK-EU trade flows combine to suffocate activity. “While the vaccine rollout offers optimism, with the
scarring caused by the pandemic likely to crystallise as Government support winds down and the prospect of persistent post-Brexit disruption, any recovery may be slower than predicted.” Chris pointed to the Chamber’s Quarterly Economic
Surveys throughout 2020, which showed cashflow worsened for the majority of firms in each quarter, and called for a package of Government financial measures to support businesses for the whole of 2021 – including the removal of “cliff-edges” for business rate reliefs, VAT deferrals and furlough. He added: “While these figures paint a gloomy
picture, the economy is ready to rebound like a coiled spring as soon as it’s able to – meaning it’s important that we get things opened up as soon as it’s safe to do so and let businesses get on with growing.”
Financial help for exporters
Exporters can apply for grants of up to £2,000 each to help adjust to trading changes brought about by Brexit. The Government launched a
£20m SME Brexit Support Fund last month to smoothen the transition after many firms were hit by delays at the border and extra administrative burdens. Grants will help fund
practical support, including training and professional advice, to ensure they can continue trading effectively with the EU.
The Chamber can help to deliver this support. For more information, email
international@emc-dnl.co.uk or call 0333 320 0333 (option 4).
business networkMarch 2021 37
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