Fears over ‘prolonged agony for businesses’
BUSINESS LEADER URGES MORE ENGAGEMENT
A Business leader is calling on the government to do more to engage with industry to help the UK move closer to normality.
With lockdown restrictions set to last for a few months longer, East Midlands Chamber warned businesses could only take so much.
Chief executive Scott Knowles said the pressure being placed on parents trying to work and homeschool their children was also concerning, while forcing overseas arrivals into quarantine hotels threatened to hold up the UK’s post-Brexit working relationship with the rest of the world.
Mr Knowles said delays to reopening the economy created a “prolonged agony for businesses”, which will have soon faced a full 12 months of disruption. He said: “Another six weeks of what is effectively a full shutdown for certain sectors, means it must be prepared to dig deep and support businesses and jobs.
“After already spending billions on helping good firms to survive this crisis, it must not let these companies fail now when the vaccine rollout provides light at the end of this long, dark tunnel.
“This may require further targeted support to affected industries where there’s a very real threat of the cashflow crisis of 2020 – which we know is a huge concern in the East Midlands as our Quarterly Economic Surveys have shown access to cash fell for the majority of companies in every quarter last year – transitioning into the insolvency crisis of 2021.
“There is also strong evidence the Job Retention Scheme will need to be extended beyond the end of April, and confirmation from the Chancellor of this as soon as possible would help businesses to plan for the future.
“With schools closed until March 8, at the earliest, this will only serve to increase the pressure on homeworking parents, who must balance their job with homeschooling. “We’d encourage businesses to offer flexible working options to employees, it would also be helpful if the government could join companies in supporting families who can’t afford laptops for children to access the necessary IT equipment. “The rationale behind so-called quarantine hotels being used to combat the issue of overseas transmissions coming into the UK is understood but it means the time has come for the government to provide the necessary support to our once-thriving travel industry.
“The concept of ‘Global Britain’ following the end of the EU transition period has never been more important and this latest set of restrictions on international travel cannot risk the East Midlands being unable to capitalise on this.”
After already spending billions on helping good firms to survive this crisis, it must not let these companies fail now when the vaccine rollout provides light at the end of this long, dark tunnel.