Businesses in
Commissioned by E.ON, the Centre of
The Covid-19 Business 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 as the country went into the first national lockdown. 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
There are other signs of businesses showing greater resilience to restrictions - areas such as the North West and the
As measures during the second lockdown have not been as extensive, with indications many businesses have also adjusted to working remotely or changed their product offering to better suit social distancing, the report predicts businesses nationwide will not see such a significant low of 19 points again.
The report also reveals businesses see a downturn in energy use caused by lockdown as a short-term trend. While many businesses are still operating at reduced capacity, improved Covid testing and developments of vaccines have prompted hopes of a full reopening of the economy in 2021 - with most businesses expecting to return to usual levels of operations and energy consumption, if not higher.
Commenting on the report,
'It's understandable that businesses have focused on the immediate threat but as we hopefully emerge from the worst of the pandemic companies must now invest in a green economic recovery, not only to protect their bottom lines but to help alleviate the next looming catastrophe: the climate crisis. This research shows that both government and the energy industry must also find a way to remove some of the barriers - notably cashflow and payback periods on investments - and work together with businesses to deliver a recovery which makes economic and environmental sense.'
The Covid-19 Business Tracker shows that some industries were impacted more than others. 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 a fifth (18%) reporting they paused trading in October.
As part of the report, ten businesses across the country and covering a wide range of industries, including manufacturing, hospitality and food production were interviewed to understand how Covid had impacted their business generally, as well as looking at how the crisis has affected energy use and energy efficiency plans.
All ten had made use of government support schemes such as furlough and the business rates holiday and all saw staff work from home where possible. Manufacturing businesses shut down completely during the first lockdown, meaning they reported a significant drop in energy use as less power was needed for running machinery, lighting offices and powering computers.
Those interviewed were mindful this would drive costs higher but at this time they are not looking at improving their sustainability. Business leaders relayed that upfront costs, combined with issues around renting rather than owning business space - lack of landlord approval and leases that are shorter than payback periods - were the biggest barriers to installing such measures in businesses.
About the report
1 Each indicator has been assigned a value between 0 and 100. The lower the score, the greater the impact on business. The number 100 refers to pre-pandemic levels, and where 100 is the highest value in the history of the indicator, with no impacts of coronavirus being experienced by
The information (including any forecasts or projections) contained in this press release (the 'Information') reflects the views and opinions of E.ON on the date of this press release. The Information is intended as a guide only and nothing contained within this press release is to be taken, or relied upon, as advice. E.ON makes no warranties, representations or undertakings about any of the Information (including, without limitation, any as to its quality, accuracy, completeness or fitness for any particular purpose) and E.ON accepts no liability whatsoever for any action or omission taken by you in relation to the Information. Any reliance you place on the Information is solely at your own risk. This press release is the property of E.ON and you may not copy, modify, publish, repost or distribute it without our permission. E.ON 2020
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