Easing of lockdown and small businesses

As I am sure most people in England are aware, today was the start of the second phase of the easing of lockdown restrictions, based on the Government’s ‘Roadmap’.

Driving through my town’s retail park this afternoon, I was caught up in heavy traffic as shoppers headed out to various retail outlets. My local pub garden was buzzing at lunch, as locals enjoyed a pint or a burger. I also observed several queues outside hairdressers and barber shops as those with a mighty boosh (i.e., long and wild hair) waited to have their hair cut.

It was wonderful to see the buzz around town after four months of deserted high streets and empty shops. Long may it last and I sincerely hope there is no going back to what we have endured over the last thirteen months.

Observing the reopening of non-essential businesses made me think about small businesses in general, and how important they are to our lives and economy. According to the Federation of Small Businesses, there were 5.94 million small businesses at the start of 2020 which account for 99.3% of all businesses in the UK. Small businesses account for 48% of employment (about 13.3 million) and around 36% of total business turnover in the private sector (about £1.6 trillion).

Some other interesting statistics are that nearly a fifth of all SMEs operate in the construction industry, while professional, scientific and technical activities account for 15% of all SMEs. 35% of all private sector businesses are based in London and the South East.

So why do I mention all this? The main reason is that the data above illustrate quite clearly what a massive contribution small businesses make to the private sector and our country, and in turn on the people employed by them. Given that most small businesses have been shut for the last four months, and at stages for several months prior to that, it makes me feel extremely relieved to see them open again.

In my opinion small business is the lifeblood of this country, where so much of our renowned innovation, culture and entrepreneurship comes from. While we are all gratefully that many of these businesses have managed to stay afloat thanks to various Coronavirus help schemes, loans and Furlough, nothing can replace the importance of having these businesses open for trading again, and I sincerely hope that they will bounce back and help reignite our economy and continue to provide essential employment to so many of our citizens.

All this leads me to accountants and the role they have played during the pandemic. Many accountants I know have been instrumental in providing support to their clients, the majority of which are the small businesses I referred to at the start of this article. This support has come by way of not only the essential advice and assistance with understanding the various help schemes, furlough, VAT deferral, etc., but also by just being there for their clients - a sympathetic ear, a sounding board, providing words of assurance. That value should not be underestimated in my opinion.

As an accountant based in the heart of Tunbridge Wells, I wholeheartedly support and champion local small businesses, and wish them all every success as life returns to normal over the next few months. I am committed to providing my clients with continued support and excellent service during these transitional times.