There have been a number of positive signs that firms are beginning to feel more positive about the future over recent months. Thanks to the extended government financial package, including the extension of furlough support as well as the successful vaccine programme, businesses are finally seeing a road back to full operation, where they can begin to regain confidence and invest for the future to support economic recovery.
There is a sense of optimism that the UK will bounce back and create a more prosperous future. The recently held G7 Summit provided a platform for the UK to layout plans to some of the biggest countries on how we can unite to build back better from the past 14 months and create a more sustainable, greener future.
This doesn’t change the fact that over the past year many companies have suffered immeasurable losses, it is without question that the government support put into place over the course of the pandemic has saved countless businesses and livelihoods. As we plan for the future it is important that the slowdown of this support is managed with care by the government and the stabilisers do not come off too soon.
There is still a risk that companies who have been heavily reliant upon government support still face the possibility of insolvency and redundancies. The recovery will also vary across a range of business sectors, locations and also demographics.
Government need to be aware of this and will have to err on the side of caution if we are going to achieve not only a full economic recovery but a better future with challenges faced along the way. A flexible approach may need to be adopted by the government with support available to those who still need it.
For more information and guidance please visit our coronavirus business support hub here.