“THE MOOD in Wokingham is positive”, said a member of Wokingham Business Association (WBA), after a nationwide report suggested companies are in “survival mode” following the third lockdown.
A recent survey of 435 firms by the Association of Practising Accountants (APA) revealed 15% of UK enterprises are struggling with the impact of the coronavirus pandemic and economic uncertainty.
The Association, which conducted its research between April and May 2021, also reported one in 10 (11%) businesses expect to make redundancies in the coming six months — putting up to 1.85 million jobs at risk across the country.
But Colin George, a member of WBA, said it’s a “mixed bag” in Wokingham and retailers are feeling optimistic about the future.
“Some people are upbeat and think business is picking up,” he said. “But it’s not at the level it was pre-pandemic.”
He continued: “Businesses are still restricted in the number of people they can serve, but a lot of retailers are quite busy.”
APA’s survey also revealed while some businesses remain cautious, 84% of firms reported feeling confident they could survive the next six months.
It said in the longer term, over half (54%) of business owners are feeling positive about their economic prospects outside of the EU, too.
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Mr George said restrictions on international travel have left Wokingham retailers feeling hopeful about summer trading, as holiday-makers prepare to spend money closer to home.
“I think businesses are reasonably confident in this roadmap out of lockdown,” he said. “While masks might not go and social distancing might stay, the confidence is there because people won’t be spending money abroad.”
He said the pandemic has prompted more people to head into town to enjoy coffee and food with friends, which bodes well for economic recovery.
“Wokingham has placed itself very well to bounce back,” he added. “That’s what makes it one of the best places to live. We have the right chemistry.”
Mr George warned tough times are yet to come, and he suggested Wokingham might not see the true impact of the pandemic just yet.
“You don’t correct your finances after 14 months, in just a couple of weeks,” he said.
“The pandemic has been a money drain, and people have sunk their businesses with rent, electricity and water.
“These expenses don’t go away, and there has been more than a year of no income.”
The WBA member said some Wokingham borough firms have no savings left after the pandemic.
“The slightest little thing could push them over the edge,” he added. “They don’t have that buffer anymore.
“It’s been a death by a thousand cuts, so let’s look back again in 16 months time and see what firms are still here.”
Martin Muirhead, chairman of the APA, said businesses nationwide have become more resilient throughout the pandemic.
“Over the coming months it is vital that the Government maintains a flexible and targeted approach to business support, focusing resources on those sectors where there is the greatest need,” he said.