Companies in Lichfield and Burntwood will need to channel an “extraordinary spirit of resilience” to navigate the next few difficult months, a regional business chief has said.
A new quarterly business report by the Greater Birmingham Chambers of Commerce (GBCC) says that despite a COVID-19 vaccination programme due to begin this week, firms across the region will need support for at least the next six months.
Paul Faulkner, the GBCC’s chief executive, said a second nationwide lockdown and the end of the Brexit transition period edging ever closer had marked “yet another tumultuous few months to cap off an extraordinary year”.
“Our latest quarterly business report revealed that domestic demand among local firms continues to linger in negative territory. We also saw a pick up in export demand while recruitment levels remaining broadly consistent.
“Business confidence is still understandably fragile, investment in capex and training remains subdued and of most concern, the majority of businesses in the region saw their cash flow levels worsen.
“It was no surprise to also see a greater number of firms facing increasing cost pressures as the fallout from the pandemic continued to bite.
“As we look ahead to next year, clearly there is hope on the horizon with a number of vaccines securing the regulatory approval required to hopefully usher a return to normality.
“Nevertheless, we understand the next few months are likely to be extremely difficult and businesses in the region will need to continue to channel the extraordinary spirit of resilience which has seen them navigate the last nine months.”
Paul Faulkner, Greater Birmingham Chambers of Commerce
The report also revealed that the prospect of ongoing restrictions into the first quarter of 2021 meant support grants from Government were vital.
Raj Kandola, the GBCC’s senior policy adviser, said:
“Lessons need to be learned from previous programmes to ensure those that need the money receive it as quickly and smoothly as possible otherwise their prospects for survival will look bleak.
“Grants alone will not sustain an economic recovery in the long term and there are a number of elements which the Government will need to focus on in order to create a pathway to prosperity.
“Delivering a comprehensive trade deal with the EU, reforming the business tax structure to make it easier for firms to invest and working with local stakeholders to target infrastructure spend more effectively are all likely to be important factors in facilitating long term economic growth .
“A failure to act now would be a dereliction of duty and one that is likely to have a profound impact on the region for years to come.”
Raj Kandola, Greater Birmingham Chambers of Commerce
The full quarterly business report can be read here.
I’m sure the sunlit uplands and easy trade deal will help. At least we’re not in a situation where, with days to go, most companies have no idea how to properly prepare for importing and exporting from / to the EU
I believe all business need to re open their doors if they are allowed. For every day companies remain closed is a day your competitors will steal your clients. I have total sympathy with anyone in hospitality but come April there will be no furlough, no more government backed loans (and anyone taking a bounceback or CBIL loan you will have to start making repayments 1 year after you took it) no more grants. Tiers will rapidly disapear. Now is the time to act to get your business back open.