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London businesses were most impacted by the Covid-19 pandemic, according to exclusive new research.
Created by the Centre of Economics and Business Research, the Covid-19 Business Impact Tracker is an analysis of 20 separate indicators – including demand for government support schemes, GDP and workplace footfall – to reveal how UK businesses have coped with tougher trading conditions as a result of the pandemic
Commissioned by E.ON, the research reveals that after the initial shock of lockdown in March, signs from Wales, the north-west and East Midlands – where restrictions have been tougher for longer – show businesses are proving more resilient.
The tracker started with a baseline score of 98 at the beginning of the year while under normal economic conditions.
That number fell to a low of just 19 in April and despite signs of recovery in recent months, the second lockdown has stalled recovery and flattened numbers to a national average of around 52 between August and October.
Data indicates London appears to be feeling the longer-term effects most significantly – averaging a score of 47 over the late summer and early autumn period.
Wales saw the biggest decline in business activity in October, dropping five points on the tracker, from 54 to 49, as it headed into its ‘firebreak’ lockdown in the month before England entered its second lockdown.
Promisingly, while Wales has not returned to pre-Covid levels, the economic impact was not as significant as in the first lockdown.
Researchers believe this could provide a strong sign for businesses across the rest of the UK as they emerge from their second four-week stint of restrictions.
However, more than one in five (22%) businesses in the arts, entertainment and recreation sector paused trading in October and, as the worst impacted sector, it is no surprise that a third (34%) of businesses in the industry saw their turnover fall by more than half. Accommodation and food services businesses were affected nearly as hard, with almost a fifth (18%) reporting they paused trading in October.