Almost two-thirds of small businesses expect to see a boost in performance as lockdown restrictions are loosened to welcome back shoppers.
The Quarterly Federation of Small Businesses (FSB) Small Business Index (SBI) has posted its highest reading in almost seven years, with 58% saying they will see an improvement this quarter, and fewer than one in three (31%) expect their performance will worsen.
Trading restrictions ease across England and Wales today, and the FSB says its 海角视频 SBI confidence measure has risen to +27.3 in Q1 of this year, up from -49.3 last quarter.
The index is at its highest level since the third quarter of 2014, when it hit +41.0, and is in positive territory for the first time since the second quarter of 2018.
However, as the job retention scheme winds down over the coming months, one in seven (14%) small firms with staff say they are likely to make some or all of their team redundant this quarter.
FSB national chairman Mike Cherry said: “It’s fantastic that our shops, hairdressers and gyms can get back to doing what they do best all over England from today, with some restrictions easing in other parts of the 海角视频 as well.
“The certainty provided by the Government’s road-map is filling many small business owners with renewed confidence. We live in hope that the virus stays in retreat so the remaining indicative dates for unlocking can be met, enabling our vital night time economies, offices and travel and tourism businesses to get back to it as well.
£17m boost for SMEs
Esh Group and Sunderland City Council team up for major highways scheme. Find out more here
Most Read
“It’s worrying to see such a sizeable proportion of employers fearing redundancies over the coming months. Initiatives like Kickstart, as well as incentives to take on apprentices and trainees, need to be delivered efficiently over the coming months to protect against a job market shock and support the young people that have disproportionately borne the brunt of rising unemployment.”
Today’s reopening of non-essential shops has been welcomed by North East business organisations as a huge leap forward for the region’s firms.
Newcastle BID company NE1 Ltd said it was looking forward to seeing people return to enjoy the city’s world-famous hospitality, where an extra 45 pavement licences have been fast-tracked to serve up a total of 103 pavement areas for city pubs, bars, cafes and restaurants.
Stephen Patterson, director of communications at NE1 Ltd, said: “Throughout lockdown, the council together with NE1 and hospitality businesses across the city have worked hard to make business premises as Covid safe as possible, expanding outdoor areas where they already exist, as well as creating new ones.
“This has been very much a ‘one city’ approach, with the city’s businesses and the city council coming together and working hand in glove to make this happen. Enabling more of Newcastle city centre to cater for al fresco dining, drinking and other cultural activities will have a transformational effect allowing people to return and to enjoy the city safely whatever the weather.
“It’s been a long year and we are delighted to see the city reopening, businesses trading and people starting to enjoy themselves once again.”
James Ramsbotham, chief executive, North East England Chamber of Commerce said reopening will be a “tremendous relief” for so many businesses, stressing that the important step now is to ensure measures are in place so everyone feels safe to return to retail spaces and shops.
Don’t miss
He said: “There must be a clear route out of this pandemic so once open businesspeople do not have to then close again, for the third time, as that would be catastrophic for many of them.
“We all need certainty to be able to bounce back from the last year and grow our economy without fear of restrictions so that means the public remaining supportive of wearing masks and social distancing as well as testing for the virus.
“We also have to be supportive of people who may have had mental health problems and could struggle to go back out into the world at large. The North East will recover quickly if we all pull together to achieve our aim of a return to normality.”
Latest on the lockdown road map
Sharon Appleby, chief executive of Sunderland BID, said business across the city had shown how enterprising and imaginative they could be to engage with customers in lockdown - and hoped that would now pay dividends.
“Shoppers have realised the importance of supporting local businesses and at the same time Sunderland now has more to offer than ever before, with some really exciting outlets about to open for the first time. We’re seeing investment in property, new stock and companies starting to recruit – which are all very positive signs,” she said.
“There really is plenty of cause for optimism and we are really looking forward to welcoming people back, but also want remind everyone of the need to follow the guidelines.”
Sarah Glendinning, CBI North East director, added: “The reopening of retail and outdoor hospitality comes as a huge boost to businesses across the North East, and will help carve a path to strong economic recovery.
"While there’s still some way to go, knowing the roadmap remains on track will help breathe life back into our communities. The last year of stop-start restrictions, while necessary to help manage the spread of COVID-19, has taken a heavy toll on firms across the region. So firms will be counting down the hours until they can safely reopen their doors, welcome customers and contribute to improving people’s lives and livelihoods.”