BUSINESS OPTIMISM?

The number of businesses in the UK increased in 2020

DESPITE the pandemic’s difficult economic climate, there were more UK businesses at the end of 2020 than at the start. By the end of last year, there were 2.75m enterprises in the country, an increase of 31,265 - or 1% - from 2.72m active enterprises in 2019.

That was also the highest number since at least 2010, when comparable records began. Then there were 2.10m.

An enterprise can be thought of as the overall business or company, although it may be made up of several individual sites or workplaces.

The transport and storage sector saw the largest growth compared to 2019.

As of December 2020, there were 123,075 such businesses, an 11% increase from the previous year.

The sector includes (among others) taxi and other passenger transport and freight transport, as well as postal services and delivery companies.

Separate figures from the Office for National Statistics show overall retail sales held up over 2020, but online sales jumped by 61% in a year - with the accompanying need for deliveries, which may be behind the growth in the sector.

Surprisingly, businesses operating in the accommodation and food services sector, which was one of the most affected sectors in terms of job loss and businesses closing down during the pandemic, have also increased by 3%, from 157,040 enterprises in 2019 to 161,695 in 2020.

The industry was hit hard by lockdowns last year - with businesses shut or operating on a takeaway only basis during parts of the year.

In the most recent lockdown during early 2021, around half (55%) of accommodation and food services were not trading, more than double the rate of 24% for all businesses.

Restrictions between November and February saw around four in five businesses say turnover was down on normal expectations - including 81% saying takings were down over the New Year period.

By the end of 2020, one in ten of the workforce working in accommodation and food services was expected to be made redundant over the following three months.

During the 2021 Budget announcement, the Chancellor Rishi Sunak revealed measures to support firms during this unprecedented period.

Those measures range from the extension to the furlough scheme to loans, tax relief and cash grants to companies affected by the pandemic.