Third lockdown to chill progress made with Humber economy
‘THIS IS UNDOUBTEDLY GOING TO BE A DIFFICULT FEW MONTHS FOR BUSINESSES’
ATHIRD lockdown has arrived as the Humber economy was getting back on its feet, latest statistics have revealed. The new tough measures to see off the pandemic will put many businesses under renewed pressure, not just to make ends meet, but in some cases, simply to survive the next few months - Hull and Humber Chamber of Commerce has warned. But with the vaccine programme gathering pace, and a new package of Government support measures announced by Chancellor Rishi Sunak, chief executive Dr Ian Kelly said there was “at least some light at the end of what has seemed like a very long tunnel”.
“It is most unfortunate that the UK has had to go back into lockdown just as our local economy appears to have been rebooting for 2021,” he said.
“This is undoubtedly going to be a difficult few months for businesses of all shapes and sizes, and especially those grappling with the changes brought about by Brexit. “The Chamber’s international trade director, Pauline Wade, and her team, are offering support for them.
“We are pleased to see the Chancellor has been quick to provide support for businesses which will be grateful for it and will rely on it to keep going.
“With the mass vaccination programme now underway, we can only hope that this will be the last lockdown we will have to endure before we can all get back to some kind of normality and doing what we’re good at - building our businesses and growing the Humber’s economy!”
Research by the Chamber on quarter four revealed the domestic market was making a recovery, with home sales increasing as the balance figure soared 23 points. Home orders were also on the up, with a 19 point increase, albeit still at -6.
Export sales dropped slightly as the Brexit negotiations edged towards a climax, with the balance figure falling a further 8 points to -55, while export orders also tailed off, with the balance figure falling three points to -50.
Employment prospects improved slightly in the last three months of 2020 with more firms taking on staff, the balance figure rising by 11 points, while the outlook for the next three months looked more positive with the balance figure climbing back into positive territory at 6 points, an increase of 14. The data was, however, taken across November, before the latest lockdown.
There was a sharp increase in the number of firms reporting an increase in cashflow in the final quarter, with the balance figure rising by 50 points to 19. Investment plans were also being looked at again, with 14 per cent more firms considering capital expenditure.
In a further sign of now bated optimism, turnover and profit expectations both showed expected increases in the next 12 months, although more firms expected to see their prices increase, with the balance figure rising by 24 points to 23.
Overheads and finance were the biggest price pressures on the quarter, while competition and tax were the biggest external concerns.
We are pleased to see the Chancellor has been quick to provide support for businesses...
Dr Ian Kelly