The vast majority of mid-sized businesses within the Midlands believe they will be back on level pegging within a year of a national vaccine roll-out.
A new survey from business advisors BDO suggests:
– 98 per cent say they will fully recover within a year if a vaccine is made available
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– 67 per cent predict recovery in just six months
– 60 per cent of companies plan to revise their business plans once more information is known
The survey of bosses at companies with revenues between £50 million and £350 million followed news of three potential vaccine break-throughs in the space of a couple of weeks.
Assuming regulatory approval is secured, roll-outs could start in days, targeting the most vulnerable groups first.
The latest BDO Rethinking the Economy survey of 500 mid-sized businesses, found that around half of Midlands business leaders reported feeling more optimistic about the 海角视频’s economic recovery compared with three months ago.
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The results seem to contradict a Lloyds Bank’s Business Barometer for November, which showed falling confidence in the economy as a whole and in individual business’s prospects for the coming months, despite the potential lifeline of an end to the pandemic around the corner.
Despite the BDO survey’s optimism around a potential vaccine, 92 per cent of businesses in the Midlands believe the Government’s tiered system will lead to a greater economic divide.
It comes as Chancellor Rishi Sunak announced a £4 billion Levelling up Fund, as part of last week’s Spending Review, supporting regional projects of up to £20 million based on what local impact they will have.
Tim Foster, a partner at BDO LLP in the Midlands, said: “There is little doubt that the news of a potential vaccine has gone a significant way to boosting the prospects of Midlands businesses.
“While the majority of business leaders in the region believe that a vaccine will help trigger business recovery, the fact still remains that a significant proportion of companies face stiff operational challenges.
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“These include managing cashflow and international supply chains, as well as contending with the ongoing regional tiered lockdowns.
“The Government’s tiered approach to lockdowns has clearly intensified the levelling up debate in the regions, with 92 per cent of mid-sized businesses in the Midlands believing that Covid-19 will further widen the 海角视频’s north/south economic gap.
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“The announcement of the new tiers from the Government last week supports this concern, with the majority of Midlands businesses facing the toughest restrictions in Tier three.
“Business owners have identified a need for infrastructure investment across the 海角视频, with a focus on shovel-ready, high-impact projects that meet the specific needs of each region.
“Only time will tell if the £4 billion Levelling up Fund will help to appease those concerns and meet the needs of the region.”
The Rethinking the Economy survey also revealed that 18 per cent of businesses say that another national lockdown is one of the biggest threats to their business in 2021, with accessing additional finance topping the risk list at 20 per cent.
However, a third of Midlands businesses are reducing the number of staff on furlough and bringing them back into the business, suggesting a level of confidence in the region’s economic recovery.