Recent data by the Office of National Statistics, shows the UK economy shrank by a record 9.9% over the past year due to coronavirus lockdowns and restrictions impacting almost every sector.
Ian Warwick, Managing Partner at Deepbridge commented:
“A quarterly increase of 1% in GDP would ordinarily represent decent growth before the pandemic but in actuality it shows a modest change in output as the UK economy desperately tries to catch up. The numbers are a result of the UK’s inconsistent lockdowns during the turbulent autumn months and Brexit uncertainty. The Government has worked hard in an incredibly difficult environment to create a capital lifeline to many businesses via the BBLS and CBILS, as well as long-term support for growth-focused companies via the likes of the Enterprise Investment Scheme, but now we would urge that there needs to be even greater support – both via financial and via sustainable growth initiatives.”
“Agile companies, which continue to survive, and in some cases, thrive, provide a product or service which has a genuine medium to long term solution to a recognised problem. They will continue to develop and grow but require capital to do so.”
The full article can be found here.