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Summary
- Businesses in Britain are gradually opening up after the lockdown, ONS Survey
- Online sales have risen for few, says the survey
- All non-essential shops will be opening up from Monday, June 15
A recent survey from the UK Government’s Office of National Statistics (ONS) revealed that businesses in Britain are gradually opening up after the lockdown, which was imposed in May this year to fight the corona pandemic.
The findings indicate that for the period of 18 to 31 May this year, 5 percent business respondents had resumed their trading operations. Another 5 percent of the respondents plan to restart their operations within the next two weeks. 78 percent of the total respondents were already under operations since the last two weeks, the survey has said. Most of the businesses who are in operations, have strict social distancing measures in place.
In addition to this, out of the businesses that were continuing to trade during the mentioned period in May, 42 percent had cash reserves for less than 6 months. 22 percent of their workforce was on furlough leave. Close to 80 percent of them had applied to the Coronavirus Job Retention Scheme. Thirty two percent of them mentioned that their online sales have risen, while 33 percent said that online sales remained the same as before.
Business Impact of Coronavirus Survey- Businesses continuing to trade and selling online
(18 May to 31 May 2020)
(Source: Office of National Statistics, UK)
The ONS survey also witnessed a marginal rise in new VAT (Value Added Tax) reporters between April to May this year, however it was still less than the corresponding average monthly number for the past 5 years. VAT reporters were up from 15,250 in April to 16,460 in May 2020, indicating the new firm establishments. The number of new VAT reporters in the month is still less, as compared to the 2015 to 2019 average for May, which was 20,866.
The survey also checked the social impact of the coronavirus and found out that between June 4 and 7, 53 percent of the total adults surveyed had visited either a park or a public green space. The corresponding value was close to 30 percent during the period of 9 to 20 April this year.
Government’s lockdown re-opening plan
The UK economy went into a lockdown from March 23 this year, in an attempt to curb the fast spread of the deadly coronavirus in the nation. The Government had devised a plan to come out the lockdown gradually, being fully aware that such a measure will affect economic growth adversely. Beginning May 13, the Phase I, people were encouraged to remain inside their houses, and go out only for essentials shopping, with strict social distancing measures in place. Most of the companies, except for those selling essential goods were closed.
The second phase began from June 1, when construction and manufacturing activities started to open up. Very select cultural and social events were also permitted, and use of local public transport was opened up. All non-essential shops will now be opening up from Monday, June 15, lifting the coronavirus lockdown restrictions even further.
The next phase will begin not earlier than July 4, when restaurants, pubs, hotel accommodations, hairdressers, public spaces including worship areas and cinemas will be opened up.
UK’s Index of Production for April 2020
While the ONS survey revealed the finding of a select number of businesses surveyed, the latest Government data on Index of Production could be looked at to understand the bigger picture of the UK economy’s manufacturing activity.
The IIP data covers British economy’s production levels for energy supply, manufacturing, mining and quarrying, and water and waste management based activities.
Production levels in April 2020 have fallen by 20 percent as compared to the month of March, for all the mentioned activities collectively. The largest fall came from manufacturing, especially from transport equipment, motor vehicles, trailers and semi-trailers categories.
It is yet to be seen if this trend is getting reversed gradually, when the figures for May are out, in line with the ONS survey findings of businesses resuming operations, even though at a slow pace.
Non-essential retailers opening from June 15
Shops selling non-essential goods and services will be resuming operations from June 15. With this move, the Government is carefully restarting the economy, remarked Alok Sharma, UK Business Secretary. High-streets will be alive and kicking once again, but all the shops have to follow the COVID secure guidelines published on May 25 by the Government, he added.
It goes without saying that shopping will not be the same as before and casual browsers will not be there probably, along with the fact that the whole shopping experience will be a lot more slower than before with precautions in place at each level of activity. Some shops are advising customers to come with their list of items and a bag.
Argos is opening 145 of its standalone stores from the coming Monday. The company has devised a strategy to pick up store locations where they will be able to enforce strict social distancing norms. For the past three months, the company had been taking only online orders from its customers.
IKEA, the Swedish superstore chain that sells furniture and home accessories, will be re-opening 19 stores across Ireland and the United Kingdom from June 15.
Primark, the Irish fast fashion brand, will be resuming operations of all its 153 stores in England on June 15. The stores will have screens at tills along with hand sanitising stations.
White Company, a retailer of home décor, dinnerware, linens and furniture will reopen 13 of its stores on June 15, followed by 17 more on June 17.
John Lewis, the homeware, furniture and fashion brand, reopens 2 of its stores on the 15 June while another 11 on the 18th of the month.
While the shops and businesses are gradually resuming operations and carefully coming back to their pre-lockdown activity levels, it is yet to be seen how the UK economy is able to get back on track, with social distancing measures in place.
