News

The British Chambers of Commerce’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – has found a marked improvement in business conditions in Q2 as covid restrictions eased. The survey of over 5,800 firms showed that some key indicators, such as domestic sales and business confidence, displayed significant rises, as more firms reported improved conditions, with some indicators returning to pre-pandemic levels as Covid restrictions have eased. However, it also showed steep rises in the number of firms, particularly manufacturers, expecting to raise prices, and in businesses citing inflation as a cause of concern.

Government commitment to July 19 reopening is encouraging but BCC says businesses still need more clarity about the future.

The impacts of the pandemic will be felt well into the future but for now, businesses are taking their first steps in gradually reopening. Coffee shops and cafes are welcoming customers inside, hairdressers and beauty salons are switching on the lights and workers are starting to return to the office. Despite these first steps, trading will continue to be difficult for some time, especially for small- and medium-sized firms. These are the ones who will have seen their cash flow significantly hit and are now looking for all the help they can in trying to budget and plan for the future.

Responding to the update of the ‘green list’ for international travel, British Chambers of Commerce Co-Executive Director Hannah Essex said:    “Government must work with businesses, the aviation industry and international partners to uncover solutions to further expand international travel quickly and safely, for example through better use of testing and vaccine passports.

Introduction of new flexible season ticket rail fares must be the start of a change that leads to better value for people wherever the live, whenever they travel and wherever they go.

BCC says it is important that Government works in partnership with business around the accession process from the start.

BCC says the suspension of tariffs is welcome news but more must be done to resolve the long-running dispute

New Director-General, Shevaun Haviland, says action is needed to boost UK trade, unlock the blockages in the skills training system and build a greener and more sustainable economy.

BCC says businesses will welcome the Agreement in Principle as a positive step forward but there is a long way to go before a free trade deal is signed.

Claire Walker, Co-Executive Director of the British Chambers of Commerce, said: “Businesses will be disappointed by this setback to the reopening in England. This delay to the removal of restrictions will come as a hammer blow to those firms who must remain closed, and to those who continue to see their ability to trade severely restricted.