Member Article

Medium-sized businesses in Yorkshire will struggle with extended lockdowns but predict fast recovery when restrictions are lifted

• Nearly half (47%) of mid-sized Yorkshire businesses say they will struggle to continue trading if the strictest restrictions continue for a further two months
• 37% of Yorkshire companies feel it will take less than six months to return to pre-COVID-19 revenues once the strictest restrictions are lifted
• 70% of Yorkshire business leaders believe the Government will provide enough support to the region in the next 12 months to drive the levelling up agenda

New data released today shows how lockdown is taking its toll on medium-sized businesses, with nearly half (47%) warning that they could cease trading in less than two months if restrictions do not ease. If the current lockdown lasts a further three months into April, 93% say they would be at serious risk.

While the health implications of lifting lockdown restrictions too early will understandably be the primary concern of Government, the new figures published today by accountancy and business advisory firm, BDO, show that a continued shutdown could have major implications for the wider regional economy.

Medium-sized businesses across the UK generate £1.4 trillion in revenues each year and provide one in four jobs, according to BDO’s analysis, making them a critical part of any post-pandemic recovery.

In contrast to other regions, the majority of Yorkshire businesses don’t feel it is the right time to invest. However, 43% of Yorkshire business leaders are gearing up to invest in their businesses as they believe now is the right time. Yorkshire businesses plan to invest in technology to support more people working remotely (33%), repurposing office spaces (30%) and training and skills for existing staff (27%).

Yorkshire businesses are also looking to the Government for investment in the region with priorities outlined as more devolution to local government, investing in local infrastructure and investing in 5G and internet connectivity.

Terry Jones, head of Yorkshire and partner at BDO LLP, said:

“We know we are likely to see the toughest lockdown restrictions stay in place for some time yet and while the Government has had to walk an incredibly difficult tightrope between protecting the region’s businesses and shielding our health services throughout the course of this pandemic, it is critical that in the upcoming Budget we see policies that help support mid-market businesses.

“Lockdowns have an immediate and widespread impact, but they are likely to be a reoccurring consideration for scenario planning for months and even years to come. As such, Yorkshire businesses are still adapting to long-term remote working with investment in technology and adapting office spaces. Companies need the right support to be able to use this time to build long-term resilience with internal initiatives such as supply chain planning or improving sales processes.

“History tells us that the rate of recovery of businesses of this size will play an important role in the region’s overall economic recovery. Understandably, companies are looking to the Government to play their part by investing in local infrastructure, connectivity and enabling more devolution.”

This was posted in Bdaily's Members' News section by Emma McCallum .