Businesses still at 'half capacity' call for action

Businesses are still operating at around half of their pre-virus capacity despite the easing of lockdown measures, according the new research.

The latest British Chambers of Commerce (BCC) coronavirus impact tracker has revealedthat,onaverage,businesses said they were at 53% of theirfullpre-Covid19capacity.

More than half also cited customer demand and possible local lockdowns as major obstacles to fully restarting day-to-day operations.

BCCdirectorgeneralAdam Marshall said: "Our findings demonstratethattheUK'seconomicrestartisstillverymuch in first gear."

The survey of firms between July 6 and July 10 revealed that the steep decline in business conditions seen at the start of the pandemic is levelling off, according to respondents.

Mr Marshall added: "Businesses are grappling with reduced customer demand, an on-going cash crunch, and the potential for further lockdownsduringanuncertainautumn and winter ahead.

"The Prime Minister's encouragement to return to workplaces and further business guidance will not be enoughontheirown.TheGovernment to take radical steps to slash the tax burden around employment to help companies pay valued staff."

JackKennedy,economistat online jobs site Indeed – which partnered the survey – said: "The slowdown in consumer activity mirrors hiring activity intheUK.Today,thereare60% fewer job postings than there were before the outbreak of COVID-19.

"The furlough scheme has been an important lifeline to millions of people, but the fear is there will be a sudden rise in unemployment after that umbilical cord has been severed."