Lock-down 3 – business considerations
It’s official. We are in lock-down 3 in England, Scotland following suit and the other regions expected to enforce similar restrictions.
It is evident that any freeing impact of the vaccine roll-outs will not have sufficient impact before February at the earliest, and more likely, later in the year.
What now for businesses directly affected by these measures, predominantly the hospitality and entertainment trades?
Lock-down would probably be better described as locked-out for these business sectors. Businesses that depend on social mobility are basically cut-off from their customers by COVID restrictions and there are no obvious ways for a pub or hotel to entertain its customers online.
There are still local authority support grants that may cover certain fixed costs and furlough has been extended to the end of April 2021. But this state sanctioned support will not cover all costs and affected businesses face the prospect of funding losses for yet another extended period. Many may decide that enough is enough and call it a day.
Planning is vital. Choose your next course of action, don’t get pushed into making decisions.
Clearly, economic activity will be depressed by this further period of lock-down and this may have adverse effects across many business sectors in addition to those mentioned above. All businesses would benefit from a planning review and in particular, clarifying your challenges, the effects on your finances and the choices you therefore face.
We can help. Please call if you would like to discuss your options.