16 June 2020
This morning’s news that more than 600,000 UK workers have lost their jobs and the sharp increase in the number of people now claiming work-related benefits amid the COVID lockdown are painting a rather bleak picture of our economy. It has been hit hard by lockdown restrictions despite the government’s support packages.
Rightly, businesses are concerned about their future. In fact, most are now delaying spending or cancelling their investment plans to preserve already tight cashflows. While this makes sense in the short-term, this could hold back the country’s long-term economic recovery and their own ability to survive. Now more than ever, it is important that the government continues to support the UK SMEs through to more stable economic times.
As our new reality sinks in, businesses should avoid falling into the trap of not taking calculated risks or believing in a return to the way things were. Where possible, invest and innovate in new ways of doing business. Carrying on as before the pandemic simply doesn’t make good business sense, business models must evolve. To survive beyond the near-term, businesses must reimagine the opportunities for innovation this crisis brings.
Andrew Harding, FCMA, CGMA
Chief Executive — Management Accounting
The Chartered Institute of Management Accountants, part of the Association of International Certified Professional Accountants