U.K. Businesses Enter New Lockdown With Dwindling Cash Flows

• U.K businesses were suffering even before the latest lockdown, leaving many in a precarious position as they enter new restrictions with what many say is insufficient government support, a survey showed
• The findings from the British Chambers of Commerce add to pressure on Chancellor of the Exchequer Rishi Sunak to extend aid to companies beyond the 9,000-pound ($12,000) one-time grants he’s offering.
• With non-essential shops and hospitality venues closed for weeks after a dismal 2020, a growing number of businesses are headed for a financial abyss.
• Four in 10 firms said their cash flow deteriorated in the fourth quarter, according to a survey in November of 6,203 businesses conducted by the lobby group. Almost 80% of hospitality firms reported a drop in sales in the period.
• Prime Minister Boris Johnson’s government is counting on a mass vaccination program taking root by Easter to allow an easing of the restrictions. The latest measures to support companies add to the 280 billion pounds it has cost the Treasury to tackle the virus and bolster firms and workers through the pandemic.

(Source: Bloomberg)