Covid, Brexit and now the coming of the Omicron virus have faced many setbacks for businesses in the UK. Brexit has disrupted supply chains. Next came Covid with further disruptions to supply chains and sales while many businesses and organizations were still battling Brexit.
Brexit, Covid and Lockdowns
If Brexit and the Covid virus weren’t enough, the mandatory and extended lockdowns have been the third blow to UK businesses. This had a significant impact on businesses across the UK. Many companies saw their revenues fall, many had to lay off jobs, leading to a rise in unemployment and received government support or external financing. Who will pay the bill for all the government support that will be spent over the next few years? The taxpayer or the introduction of a new global financial system? Inflation is rising like never before. Small businesses have had sales declines of up to 40% or more in each of the last two years.
Covid is having a major impact on UK businesses. The total cost of Covid-19 has reached £126.6 billion by June 2021, according to Simply Business. About 81% of small businesses said they did not receive enough government support. With lockdowns into 2022, small businesses will lose over 30% in sales while the big online stores will see increases of up to 25% or more.
According to the Guardian, the UK economy has plunged into a supply chain crisis. Inventory levels at major retailers are at their lowest since 1983. This is partly due to transport disruptions caused by Covid and Brexit.
“We could see this last longer than people are expecting. Skill shortages could persist for a number of years, the impact of Brexit on our ability to recruit workers from the EU is not going away anytime soon and the training process has been significantly disrupted by the pandemic with people not working and furloughed.”
-Andrew Sentance, former member of the Bank of England’s Monetary Policy Committee
Steve Murrells, Cooperative Group said:
“The supply chain disruptions were the worst he had ever seen. McDonald’s has been forced to remove milkshakes and bottled drinks from its menus, and Nando’s has announced the temporary closure of 45 stores due to a shortage of chicken wings.
Business surveys have revealed supply chain disruptions in several other countries, including the US, Germany and New Zealand. Toyota said it will cut global production by 40% due to a global shortage of microchips and other components.
Cosmetic Business explained that Estée Lauder Companies has outlined measures to circumvent the difficulties global supply chains will continue to experience in 2022. In its report for fiscal first quarter 2022, ELC cited port congestion, labor and container shortages, and shipping delays as the key challenges forecast to negatively impact the business. It also indicated that higher transportation costs will impact cost of sales.
Is there hope in 2022?
According to scientists around the world, the Omicron virus is not as serious as Covid, just more contagious. Many believe that the era of Covid is coming to an end and our lives will return to normal – for those who still have jobs and businesses. Let’s hope Wuhan doesn’t repeat itself. Let’s look away from the promises made by politicians and the scapegoats they present. Let’s look at the facts presented to us by respected scientists around the world. May we all learn to decipher the presented statistics and think for ourselves. May you strive and move forward with hope and respect for all.
Is there hope in 2022?
According to scientists around the world, the Omicron virus is not as serious as Covid, just more contagious. Many believe that the era of Covid is coming to an end and our lives will return to normal – for those who still have jobs and businesses. Let’s hope Wuhan doesn’t repeat itself. Let’s look away from the false promises and the scapegoats that are presented to us. Let’s look at the facts presented to us by respected scientists around the world. May we all learn to decipher the presented statistics and think for ourselves. May you strive and move forward with hope and respect for all.
