Blog

Enterprise leaders warn of longer financial restoration

Business leaders warn of longer economic recovery

The UK’s economic recovery will take longer than the government thinks, officials say.

A survey of 400 business executives by the consulting firm Kroll found that 72 percent of respondents believe it will take two to five years for the economy to return to 2019 levels.

The numbers contradict the Budgetary Responsibility Office (OBR), the government’s budget watchdog, which predicted Britain’s gross domestic product (GDP) will return to pre-crisis levels by mid-2022.

Continue reading: BBL fraud forecasts lower than previously assumed

A significant third of those polled were not confident that the UK would even see the green shoots of recovery in 2021.

When asked what are the main problems facing the UK economy, 40 percent cited unemployment and another 39 percent cited the related problem of business failure.

“The OBR is optimistic and is forecasting a four percent increase in UK GDP in 2021, followed by around seven percent in 2022,” said Matthew Ingram, executive director of UK restructuring at Kroll.

“Under his assumptions, GDP could return to pre-Covis-19 levels by mid-2022.

“However, our surveys have determined a completely different mood among the managing directors who are on the coal mountain. The confidence of the OBR is simply not shared across the economy. “

Continue reading: Platforms mixed with the success of Covid loan programs

Ingram said the British company feels “at the moment it is covered in adhesive tape and the confidence that many business leaders have in the final opening of the economy is being mitigated by the legacy that necessary government intervention will leave behind.”

“VAT deferrals now have to be paid back, loans have to be serviced, employees have to be bought back from vacation and rent arrears have to be paid,” he added.

“Corporate Britain has amassed the debt and while this has pushed many through the pandemic, it will be an ongoing challenge for many companies as they look to the future.

“Our surveys support this as business leaders understand the dual threats of unemployment, which suppresses consumer demand, and the financial pressures when faced with government support.”

Continue reading: Banks start process to repay Covid loans