It is no surprise that lots of things have changed due to the virus pandemic. People have lost their jobs, companies have folded, and UK government borrowing has reached an all-time high due to the Chancellor’s handouts to businesses and individuals. One would expect that accountants would be worrying about the state of the economy and how it affects their clients, but actually accountants are feeling positive about the economy.
The Economy During the Global Pandemic
The UK economy was hit particularly hard during the first half of 2020, as GDP fell rapidly with a vast drop in consumer spending as well as the mammoth payments the government made to businesses and individuals to try to keep companies afloat and their staff in employment. The UK suffered most compared to other European countries as it went into lockdown late and consequently came out late. The UK government is now making plans for the future in order to put the economy back on a sound footing. According to accountants Chippenham and other towns have a positive future.
The Economy Post-Pandemic
According to the Office of National Statistics, services, manufacturing and construction have already seen growth in June, and as we come out of the effects of the global pandemic, other sectors will start to bounce back. This should be helped by anticipated infrastructure investment by the UK government, which will boost employment and bring much needed revenue to the service, manufacturing and supply sectors.
Most companies, post-pandemic, are looking at the way they work. Staff working at home is becoming quite normal, and consequently the need for large offices is reducing.
Communication between staff is moving towards live video via computers, and many IT companies are benefitting from this change in the way people work.
With all these changes taking place, the role of the accountant is also changing. Companies will now need to restructure their businesses and staffing – rearrange their finance and tenancy agreements and renegotiate business rates and rent. All this requires sensible advice to help the business thrive now and in the future. Companies can go to Chippendale and Clark for such advice and help during this post-pandemic period.
The UK was hit badly during the first few months of 2020, but now the country is coming out of it and there are positive signs for the economy in the future.