Yesterday, on the 23rd March 2021, the UK took a moment to reflect on the past 12 months.
On the 23rd March 2020, Boris Johnson announced the first UK Covid19 lockdown. We had all seen it coming, we had watched Covid ravage Europe & we knew it was on the way; but non of us could have foreseen the impact it would have had on us all.
Yesterday, 23rd March 2021, the UK mourned the loss of life , observing a minutes silence & in many counties at 8pm, people came out on their doorsteps with candles or torches to honour those who have lost their lives to this deadly disease.
So very much has changed & so very much is yet to change. With Covid variants now in Europe & laws being passed to fine those traveling abroad (without good reason) £5000 & impose strict quarantine rules on travellers; we are surely nowhere near out of the woods yet.
However, the UK Covid vaccine rollout has thus far vaccinated nearly 30 million people, with some 2.1 million people having already received their second dose. Therefore, there is hope, there are chinks of light at the end of what seems like a very long tunnel.
But what effect has this had on us as a nation & our economy? It is no secret that the UK Government have borrowed billions to support the UK furlough scheme.
‘With the third lockdown in its second month, the Office for National Statistics (ONS) said public sector borrowing was £19.1bn in February, £17.6bn more than in the same month last year and the highest February borrowing since monthly records began in 1993. City economists had expected February’s deficit to hit £21bn.
The ONS data showed that government borrowing was on course to match the Office for Budget Responsibility’s forecast for the 2020-21 financial year of £355bn. The OBR is the government’s independent economic forecaster.
The total for the 2020-21 financial year reached an estimated £278.8bn, pushing the UK’s total debt to £1.125tn and the debt-to-GDP ratio to 97.5%.’ (1)
With these figures very much in mind & due to lockdowns & business closures/suspensions; there have been some significant changes in the way that the UK functions & for many, will continue to do so after Covid restrictions are lifted & the pandemic is mostly under control. One such area which has not only undergone changes due to Covid, but due to changes in consumers behaviours, is the High Street.
The High Street ‘v’ Online Shopping
For millions of businesses over the past year, they have for the most part been closed. If a business fell into the ‘non essential’ category, then they have been forced to close their doors & either furlough staff, help them work from home or for some, they have had no choice but to let them go.
However, as we have all been restricted on where we can purchase our day to day items, millions of us have turned to online shopping & shopping locally.
This new way of sustaining our daily needs, will for some become an integral part of life beyond the pandemic, as consumers have found online & local purchasing suits their lifestyle needs.
With this increase in online shopping demand has come an increase in employment for drivers, warehouse operators & the logistics companies who support these online businesses. Although it may not create enough of a demand for the entirety of the workforce who have lost their jobs due to Covid; it is yet another example of how some people are changing & adapting due to the way Covid has impacted their employment & their lives.
Furthermore, many traditional High Street businesses have found that their successes by moving online, have superseded what they would have achieved in a shop fronted location & have therefore moved their entire operation online permanently.
One such business which has moved online, invested & thrived, is Covent Garden based Crazy Pig Designs.
Armand Serra, owner of Crazy Pig Designs, was determined to keep his loyal staff even when his Covent Garden shop had to close for the first time since he opened in 1992.
Lockdown encouraged Serra to prioritise building a new website, with smoother browse and buy journey, and he added 15% discount to every product on the site. It helped him keep loyal customers and attract a new, younger demographic. These savvy moves helped Serra to pay his staff, keep trading and have a positive outlook for the future.
“The government is saying work from home if you can, and people are buying from home. They’re going online so the priority was the website… lucky for us we were just in time to get a fantastic new site online.
“COVID-19 has forced us to get our online store launched a lot quicker than we probably had planned. But we worked flat out to get it done. It’s done very well. My advice would be to look after your staff, go online if you can, and work hard to keep your business going.”
Written by Katy-Jane mason for & on behalf of Virtually Smart
- https://www.theguardian.com/business/2021/mar/19/covid-pushes-uk-government-borrowing-to-record-february-high
- https://www.barclaycard.co.uk/business/news-and-insights/business-collaboration
