Business, Finance/Economy, Latest News | Posted: Thursday, July 2nd, 2020 at 3:05 pm | return to news

Dorset Chamber fears ‘bounceback’ recovery setback

With economic activity hitting a record low, Dorset Chamber has warned that hopes of a ‘bounceback’ will be dashed unless there is a clear roadmap forward.

Ian Girling, Dorset Chamber chief executive
Ian Girling, Dorset Chamber chief executive

It has urged the Chancellor to adopt bold new measures in his economic statement due this month.

The British Chamber of Commerce’s (BCC) latest Quarterly Economic Survey (QES) for the second quarter of 2020 – April to June – show some worrying findings.

* Eleven of 14 service sector indicators falling to their lowest level in the survey’s 31 year history

* Firms reporting increased sales substantially lower than the worst quarter of the 2008-2009 recession

* Indicators for longer term business performance plunge to record lows

Chamber chief executive Ian Girling said, “These findings make grim reading.

“They lay bare the full impact of the catastrophic economic storm that we have weathered so far but it is likely that a truer picture of the impact will only emerge once the furlough scheme ends.

“It is vital that the Chancellor takes swift, substantial and immediate action in his economic statement or any hopes of some kind of bounceback recovery will be dashed.

“Dorset businesses have consistently showed their resilience over recent months and I am confident they will continue to do so.

“However, they and fellow businesses from around the country need to see a clear and bold roadmap forward to recovery from the government.

‘The UK cannot meander its way back to recovery. The government has one chance to jumpstart the economy and business confidence over the coming weeks, and it must take it.”

The Dorset Chamber has backed BCC calls for reductions in employer National Insurance contributions, wider business rate reliefs and extended loan and grant schemes.

Other measures demanded of the Chancellor include wage subsidies to support young people, major incentives to support investment in productivity and reducing the regulatory burden on businesses.

Moves to stimulate demand are also called for, such as targeted restart vouchers for businesses.

For full details of the survey and for business support visit the Chamber website at www.dorsetchamber.co.uk.

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