One in 16 U.K. Businesses Could Close In Next Quarter
A million jobs are at risk due to the ending of lockdown support schemes, with a new study suggesting that one in 16 U.K. firms are poised to close permanently in the next quarter following more than a year of forced temporary closures. The Guardian has the story.
One in 16 firms say that they are now at risk of closure in the next quarter, the study by the LSE’s Programme on Innovation and Diffusion (POID) has found. While it marks a major rise in confidence since the worst depths of the pandemic in January, there are warnings that the risk to so many workers coincides with the planned end of the furlough jobs scheme and a cut to universal credit by £20 a week.
There are also concerns that some industries are still being hit disproportionately by the fallout from Covid, with the entertainment and travel industries still making heavier use of the furlough scheme than other sectors. The number of people being paid through the U.K. scheme stood at 1.9 million at the end of June and it is due to close at the end of next month.
Huge uncertainty remains over the economy’s direction in the next six months. While confidence has risen, there are warnings over complacency. Former Prime Minister Gordon Brown, who founded the Alliance for Full Employment group to promote jobs protection and work creation programmes, said “a new jobs crisis point is approaching as furlough ends”. …
Peter Lambert, one of the authors of the POID research, said the end of the furlough scheme would be “an inflection point” where the economy could go either way. He added: “I think there will probably need to be some continuation of support in specific sectors. My bet is there’ll be more targeted support, because unless the economy really, really picks up, there’s going to be lots of people still left in the lurch in specific sectors.”
There are also concerns over the impact on families switching from furlough support to universal credit, especially as the £20-a-week increase brought in at the start of the pandemic is to be withdrawn this autumn.
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only 1 million? There’s 2 million still on furlough.
Corporates are expecting to go back to office only 3 out of 5 days. That’s immediately 40% less traffic for any business reliant on them. Even if they survive they’re not going to need the same number of staff as before.
It’s going to be a major clusterfuck.
Absolutely!
Peter Lambert, one of the authors of the POID research, said the end of the furlough scheme would be “an inflection point” where the economy could go either way
I think we know which fricking way that is!!
It’s not very helpful if “firms”, as opposed to “businesses” aren’t clearly defined. Presumably retail and hospitality, including single shops, pubs and so forth aren’t in the “firms” category, and those that have survived thus far are still in the firing line, for going out of business.
No doubt other “firms”, such as accountants, insolvency practitioners, auctioneers and some property outfits, are poised for a bonanza.
A temporary one, like the scrap yards in the Beeching era.
Businesses are cattle, not pets.
The Covid curveball will weed out the weak and promote the strong like any other business challenge.
Propping up firms “because of the jobs” is precisely the sort of thing I would expect Gordon Brown to be involved in. After all he invented Tax Credits – subsidising poor businesses that should have closed since 2003.
We need solid well paid jobs in real firms. Not ones propped up by subsidy.
what is wrong with you? These businesses were forcibly closed by the idiots in power. They had no chance. They shouldn’t have to be propped up but then they should never have had to close in the first place.
Not true. While there will be some like this, it’s also going to destroy a lot of businesses which were perfectly viable, and would have remained so if it wasn’t for 18 months of ridiculous bedwetting restrictions from the government,.
I wouldn’t worry too much, it was a Guardian report.
There’s no reason to assume that it’s not likely to be true, though. The economic impact can already be seen in pretty much any town or city – just look at the increase in empty shops.
What annoys me about it all is that the Guardian has been a consistent cherleader for any and every dystopian restriction. It’s more than a bit hypocritical for them to now express concern about the very predictable outcome of the measures which they fully supported.
Not to worry, universal basic income will come in to save the day (sarc)
File under: No s***, Sherlock.
Yep- I also heard that the Pope may be a Catholic…
I cannot understand why any country would not do everything in their power to save small businesses. Makes no sense not to do so. However, in lockstep all countries did the same thing and shut all nonessential businesses, despite the fact that it did not affect the invisible virus. But it sure killed many small businesses. Makes no sense.
Of course there could be a very simple explanation to all these ‘variants’. Colds. Hayfever. Everyday symptoms that in the past no-one even thought about. We have become a society reliant on whatever the modellers want to earn their money on. If we were to stop every test and let people settle back into a less hysterical way of life, we would all be better off.
We all said there would be a disaster of some sort in order that the fear gets ramped up again. I wonder if the USA withdrawal mess in Afghanistan has been engineered to help the Globalists usher something worse in.
This period may end up being called the period of the Modellers. Bullies and bedwetters.
One in 16? I fear it may be rather more than that: but what are the ‘previous / pre-lockdown / pre-COVID‘ numbers for comparison?
Surely those should be included in any such piece, lest we be accused of similar scaremongering tactics as those employed by the MSM propaganda machine.
Pubs, hotels, cafes across England strangely currently unable to get workers.
Bunch of lefties and hopeless excuse for a past PM want more furlough.