Trade Association Update: July

From unlocking to recovery… and on to a brighter future 

Come July 19, some 493 days will have passed since the first lockdown began. Yet latest noises emanating from government suggest this remains the date when we will see final restrictions lifted and freedoms restored.  

For businesses operating across virtually all sectors, this will be welcome news.  

Business leaders have always understood public safety had to come first, and have gone to great lengths to make their operations Covid-secure and to protect staff and customers. But the uncertainty of shifting dates has created enormous challenges. Member associations I have spoken to have typically favoured certainty over haste, so the Prime Minister’s insistence that relaxation will be ‘irreversible’ will be crucial in enabling firms to plan for the next stage of their recovery. 

For some, the anticipated end to restrictions comes in the nick of time, relieving pressure on jobs and livelihoods which have teetered on the brink for more than a year. For others, it may sadly be too late – it is imperative to do everything possible to keep this number to a minimum. The emphasis now is rightly moving from crisis to recovery, but that recovery will be faster and stronger if every sector is able to play its part.  

That means government must move quickly to tackle any unanswered questions about what comes next. Businesses operating in hospitality, leisure and live events, for example, need confirmation of what is likely to happen on July 19. An end to social distancing? No more masks? What will it mean for the ‘work from home’ guidance or workplace testing? 

For those in travel and aviation, the uncertainty is even greater. The traffic light system for international travel has restored some opportunity for trade, but is subject to flux – and potential restrictions for travellers at destination countries. It is vital that the UK works with the EU and governments around the globe to establish common standards which enable travel to safely resume in full – otherwise, we risk not only losing jobs and skills from the sector, but hindering the UK’s global competitiveness for the long term.  

Financial support is still needed too – especially for those sectors which are yet to truly embark on their recovery, and where a full revival remains some way off. 

That support will come in a number of guises. The furlough scheme – so successful in protecting jobs throughout the crisis – began tapering last week, yet will still have a role to play in supporting those in heavily impacted sectors as they ease their way back to full economic health. The same is true of business rates relief; while it has also begun winding down this month, its reduced terms will still afford some leeway to firms as they rebuild their trade. 

And demand is indeed recovering. You may have seen details of the CBI’s recent economic forecast for the next 18 months, which is predicting a far faster revival than previously expected. Indeed, such has been the acceleration in economic activity – with 9 out of 10 firms now trading again – that we are expecting all ground lost during the pandemic to have been recovered by the end of this year.  

It’s an encouraging prognosis. And businesses across the UK stand ready and eager to play their part in the region’s recovery. They await July 19 with interest, and look forward to making 2021 a summer to remember.  

I hope you enjoy a good summer break, and I look forward to meeting with you for our next Trade Association Council, and many more events besides, to continue our work together. 

Henry Aldridge 

Head of Trade Associations 

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Useful resources 

• The CBI's Coronavirus Hub has all the information regarding COVID-19, including advice, guidance, and what your business can do to help. 

• The CBI's UK Transition Hub has the most up to date developments regarding the UK-EU Trade and Cooperation Agreement (TCA) and provides guidance on specific issues. 

Both these hubs are accessible on our public site, so do feel free to signpost them to your members. 

Have you had any changes in your team? 

We are keen to hear your news about staffing changes so that we can update how we communicate with you accordingly. Please let myself or Talisha know. 
 
Access to MyCBI is also open to any staff member in your organisation. With a wealth of resources and access to informative webinars do let your team know to use this valuable resource and check which opportunities and policy publications you can access.