Critical questions remain for firms wanting to reopen - Chamber

The government must give businesses greater clarity on its roadmap out of lockdown.

That 's according to the British Chambers of Commerce, who have written to the government seeking updates on a number of vital issues - including how it plans to assess its four tests to determine if the roadmap will be followed.

The Chambers say firms also need more detail on the practicalities of reopening and the government 's various reviews so they can make concrete plans on how they will operate - for example, what social distancing rules will be in place at each stage of the roadmap and beyond.

Companies are also looking to government for clarity on potential legal issues surrounding vaccinations.

Finally, businesses which operate across the UK need the government and devolved administrations to work together on synchronising their differing routes out of lockdown.

It follows a BCC survey of more than 1,000 firms at the end of January which revealed that many firms were struggling due to the continued Covid restrictions.

The survey revealed:

• 55 per cent of respondents say they are looking to access finance over the next twelve months. Of these, almost two out of three (63 per cent) are doing so to support their cashflow and only 28 per cent are doing so to invest in products, research and development, or equipment.

• A quarter (26 per cent) of firms describe their current level of debt as either 'unmanageable ' or 'high and manageable '. This rises to 32 per cent for consumer-facing firms like hospitality and retail.

• Almost a third (32 per cent) of all?respondents said they saw write offs relating to Covid-19 lockdowns or restrictions?in the last 12 months.

Baroness Ruby McGregor-Smith, president of the BCC, said: “The route back to a full reopening of the economy is still a long way off, with continued uncertainty about whether, and when, the roadmap steps will be met.

“Far too little has been revealed about how the Government is assessing its four tests on the roadmap for businesses to accurately judge whether it will happen as planned.

“The timescales for some firms to get ready are already short. Others will be holding out for decisions to be made around issues like international travel and tourism to finally give them hope for the future.

“The UK Government must also find a way to work much more closely with the devolved administrations in Wales, Scotland and Northern Ireland on a collective route out of lockdown. Many businesses operate across these borders, in both directions, which makes planning their restart even more complex.

“Many companies appear reluctant to invest, buy in new stock or make plans for how they will operate when so much is still unknown.

“They have built up huge levels of debt throughout a year of continued restrictions, seen their cashflow reduced to a trickle in some sectors, while others have been forced to absorb large write-offs due to sudden lockdowns. ”

Daniel Clarke (pictured), policy manager at Greater Birmingham Chambers of Commerce, said “Many businesses will be reluctant to make plans for re-opening until the government sets out how they intend to assess each of their four tests. By doing so, businesses will be able to make more of an informed decision as to whether they are likely to be able to open on schedule.

This is important as businesses are unable to get up and running at the flick of a switch and are rightly concerned about any potential losses they may incur if they are suddenly unable to re-open.

“Government should keep businesses informed between each step by providing regular updates on the progress made against the four tests. With social distancing measures also currently under review, it is imperative that businesses are given sufficient notice of any forthcoming changes that will need to be implemented on re-opening.

“There is also a great deal of uncertainty around the future role of workplace testing. The government is currently providing free testing kits to businesses but this is set to end in June.

“Regular workplace testing will play a crucial role in keeping transmission low and helping firms remain open for the foreseeable future.

“Being able to access these tests for free beyond the summer will make a huge difference to many businesses. ”