Majority of businesses expect growth to slump after coronavirus passes
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British businesses are pessimistic about their growth once the coronavirus crisis passes, as they continue to face significant obstacles to running normal operations.
A survey commissioned by UK Finance and undertaken by BDRC found that the Covid-19 crisis has negatively impacted nearly 70 per cent of businesses in Britain.
Three out of five (60 per cent) said they do not expect to return to growth in the near future, and only 23 per cent predicted an expansion of their business.
More than a third of firms expect to make permanent redundancies or temporary lay-offs, with a fifth saying they only have one month of cash reserves left.
Of those who have received a government-backed loan in this time, almost 60 per cent have less than three months in cash reserves, compared to an average of 39 per cent across all businesses.
These businesses are also more optimistic about their post-coronavirus future, with 87 per cent of loan recipients saying they will survive the pandemic, higher than the UK average of 83 per cent.
“The coronavirus crisis has created huge challenges for businesses, and lenders are committed to giving companies of all shapes and sizes the right support,” said UK Finance chief executive Stephen Jones.
Businesses have now borrowed almost £35bn under the government’s three emergency coronavirus credit programmes, but the approval rate for coronavirus business interruption loans (CBILS) remains just over 50 per cent.