Businesses are anxious ahead of Boris Johnson’s news appearance on Freedom Day.
FREEDOM DAY has arrived, and the majority of coronavirus restrictions in England will be abolished as of today. This is expected to have a number of consequences for both firms and employees, particularly if government support is phased out.
The economic impact of the Freedom Day relaxations is projected to be significant, however not all of these adjustments will be favorable. According to new study, growing prices might make life tough for employers and their employees, which could be exacerbated by the end of the furlough scheme.
Equals Money, a payment solutions and cost management provider, has surveyed 1,050 SME executives in the United Kingdom.
The survey’s findings were announced today, and they revealed that many people expect costs to grow in the coming weeks, putting the economy under more strain.
Leaders of UK SMEs are bracing themselves financially for lockdown easing, according to Equals Money, with approximately a third anticipating salaries (37%) to rise, spending (32%) to rise, office supplies (30%) to rise, and IT equipment (30%) to rise.
Equals Money’s Chief Executive Officer, Ian Strafford-taylor, elaborated on the findings.
“Everyone is looking forward to getting back to ‘normal,’ and freedom day will have benefits and drawbacks for UK SMEs,” Mr Strafford-taylor added.
“Reopening businesses without limits would undoubtedly benefit many in terms of sales, but it will inevitably involve higher expenditures, especially with furlough contributions set to double to 20% for employers in the near future.
“The employment market is also improving, which might mean more money spent on hiring or counteroffers.”
Nearly all (91 percent) of those polled said they had to pay big and unexpected costs during the pandemic, which could catch many firms off guard in the coming weeks.
In addition, the uncertainty surrounding Brexit may exacerbate these problems.
SMEs will have to deal with a changing international economic landscape, according to Equals Money.
It revealed that since the Brexit deal went into force in January, three-quarters of respondents (76%) said overseas suppliers have raised prices, with a third (33%) citing a price increase of more than 10%.
“Leaders of the UK’s SMEs have had to be exceptionally resilient over the last year, with lockdowns and Brexit hurting cash flow,” Mr Strafford-taylor said.
“The capacity to plan and foresee expenditure is the key to a sustainable cash flow, and that insight comes from pre-existing.”Brinkwire Summary News”.