3,626 Southampton businesses are in ‘significant financial distress’ according to Begbies Traynor.
From January to March, 3,626 Southampton businesses were severely struggling. This is an increase of 41% compared to the same period last year.
The Office of National Statistics found that from 5th-18th of October 2020, 42% of actively trading businesses reported that they had less than six months’ cash reserves and 3% said that they had none.
The pandemic has already caused the permanent closure of some businesses despite the government’s financial support such as grants, loans, and tax relief. Small businesses have been hit particularly hard, and many have been forced to take advantage of the furlough scheme, which is now extended until September 2021.
It is hoped that as COVID-19 restrictions are lifted, many businesses will be able to recover. According to the Government’s recovery roadmap, most Covid-19 restrictions are hoped to be lifted by 21st June in England.
Read more about Begbies Traynor’s report here.