ONS report shows 50% of UK businesses record lower turnover
The Office of National Statistics has released its initial results from the new Business Impact of Coronavirus (COVID-19) Survey (BICS), understanding what impact the COVID-19 has had on businesses and employees across the UK. It revealed that 28.5% of employees have seen a decrease in working hours, 46.1% have been encouraged to work from home, and 46.2% have to work from home. However and most startingly, 44.6% of businesses have seen a lower than the normal range of turnover from the 9th until 22nd March, due to the COVID-19 crisis.
This comes, last month, as the IHS Markit/Cips private sector purchasing managers’ index (PMI) – a gauge of economic performance – plunged to a record low of 37.1 in March from 53 in February. A score of under 50 indicates contraction, meaning the private sector shrank at an unprecedented pace this month.
In the UK, business activity crashed at a record pace in March as efforts to contain coronavirus sent the UK economy into a tailspin, preliminary survey data has shown, putting Britain on track for an extreme recession.
Luke Davis, CEO and rounder of IW Capital, a leading EIS SME investment firm, has commented on the results of the survey.
“Hopefully, these figures from the first ONS Business Impact of Coronavirus Survey are in line with what has been reported, but will not have the added benefit of the government support that was announced after the survey date. What we are seeing at IW Capital is that SMEs and investors are keen to keep their businesses operating as normally as possible in order to fulfil contracts, continue the employment of their staff and grow despite the difficult circumstances.
The SME arena is 99% of the private sector and employs two-third of British employees, so ensuring their output and profit is essential for the continuation of the British economy. Support for nimble startup and scale-up business, particularly those that want to help fight this virus with the government and the NHS, is absolutely key at this moment in time, and I hope officials and investors continue to support our fantastic entrepreneurs and businesses to help Britain out of this crisis and thrive on the other side.
