Cheltenham: 01242 260066 | Bristol: 0117 933 5710 | Email accountants@mitchells.org

UK economy 'still stuck in first gear'

24 Jul 2020

The UK's economy is 'still stuck in first gear', with many businesses operating at half their pre-coronavirus (COVID-19) capacity, according to the British Chambers of Commerce (BCC).

The BCC's Coronavirus Impact Tracker found that over half of businesses were suffering from reduced demand. In fact, customer demand and possible future local lockdowns were rated the two top obstacles to maintaining day-to-day operations.

A third of firms said they intend to make redundancies over the next three months, with 13% of businesses having already laid off staff.

Commenting on the survey, Adam Marshall, Director General of the BCC, said: 'Our findings demonstrate that the UK's economic restart is still very much in first gear. Businesses are grappling with reduced customer demand, an ongoing cash crunch and the potential for further lockdowns during an uncertain autumn and winter ahead.

'The time has come for the government to take radical steps to slash the tax burden around employment to help companies pay valued staff, rather than the Revenue.

'A major boost to the Employment Allowance and an increase in the threshold for employers' national insurance contributions (NICs) should both be in the Chancellor's sights if he wants to help viable companies save jobs as the furlough scheme comes to an end.'

Try a site search Tax returns, budget, pension, rates and allowances...

Contact details

Cheltenham Office: 01242 260066
Bristol Office: 0117 933 5710

Company Registration No: 4161638
Company Registered in England and Wales.
Company details
Mitchell Glanville Limited
Registered Address: 41 Rodney Road, Cheltenham, Gloucestershire GL50 1HX

Bristol Office: The Garden Suite, 23 Westfield Park, Redland, Bristol BS6 6LT
Mitchell Glanville Limited regulated by the Institute of Chartered Accountants in England and Wales
Mitchell Glanville (Bristol) Limited regulated by the Association of Chartered Certified Accountants

© 2020 Mitchells Chartered Accountants. All rights reserved. We use cookies on this website, you can find more information about cookies here.