Covid-19 set into motion the biggest health crisis for decades both here in Northern Ireland and across the globe. Of equally grave concern is that the effects of lockdown on businesses is triggering an economic emergency far worse than the financial crash of 2008.
Sharp Decline In Business Activity
The financial crash 12 years ago seemed to decimate the Northern Irish economy more than most, and we seem to be on track for the same to happen once again with Northern Ireland suffering the sharpest declines in business activity of any UK region.
No part of the economy seems to be escaping the effects of coronavirus, with retail, manufacturing, tourism, construction and farming all taking a hit.
In The Middle Of An Economic Emergency
Here is Stephen Kelly, who is the chief of industry group Manufacturing NI, voicing concerns about what will happen in Northern Ireland once the furlough scheme comes to an end:
“Quite clearly we are in the middle of a public health emergency, but we are also in the middle of an economic emergency. We do know that tens of thousands of jobs have been placed into the furlough system in Northern Ireland. And if the intention of furlough is to avoid redundancy for now then we are worried that when the scheme runs out we could be talking about tens of thousands of jobs being lost”.
Phasing Out Of The Furlough Scheme
The chancellor of the exchequer Rishi Sunak said in an interview recently the furlough scheme would come to a halt after a few months but that it would be a gradual phasing out as trading conditions changed. We sincerely hope that this is the case so it gives businesses the chance to get back on their feet and grow again once things get back to something approaching normality.
Whether you are a business who wants advice on the grants and funding that is available right now, or you want to set up a business plan for the next few months covering all eventualities, we are here to help. Just give WHR Accountants a call on 028 3752 2909.