Problems as we emerge from lock-down

The precautions taken by government to contain the COVID-19 outbreak, commonly known as lock-down, have created varying problem for UK businesses. As we ease our way out of lock-down many of us will have further issues to confront. This post considers some of those issues.

According to the Office for National Statistics, economic activity in the UK fell by 20.4% in April 2020. This is the largest drop in a single month since records began in 1997.

Which group do you fit into?

The way in which you can respond to efforts to re-open doors to business depends on how your firm continues to be affected by lock-down. There are three broad categories:

1.   You are unable to trade. COVID-19 restriction mean you cannot sell your goods and services. Pubs, restaurants and much of the leisure industries fall into this group. Typically, this has resulted in the furlough of all staff and a complete absence of sales.

2.   You have managed to stay open for business, but at a much reduced level of activity. Perhaps some staff have been furloughed, sales are much reduced, the business has struggled to avoid losses and depletion of cash reserves.

3.   You have experienced no drop in activity. It has been business as usual.

Very few businesses will be fortunate enough to be in the third category.

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