Businesses in Warwickshire urged to ask for support in wake of Coronavirus outbreak

It comes on the back of forecasts from the British Chambers of Commerce (BCC) that economic growth will slow in 2020 before picking up again in 2021 and 2022.

Louise Bennett, the chief executive of the Coventry and Warwickshire Chamber of Commerce is working with partners across the West Midlands in dealing with the impact of the virus on the economy.

She said the Chamber was keeping members updated with the latest information from Government and would guide businesses through the support available as more details start to emerge.

Louise said: “We can already see the economic impact it is going to have in the short term and this is reflected in the British Chambers of Commerce’s forecasts.

“It’s vitally important that business gets all the support it needs through this uncertain, unprecedented period and that Government makes that as accessible as possible.

“Businesses can contact their Chamber of Commerce for information and guidance during this period – from HR and legal support through to help with overseas clients and contacts.

“We will also be guiding companies on how to access Business Interruption Loans and have already had contact with a major bank who, in the next couple of days, will be ready to begin supporting companies through this period.

“It’s vitally important that businesses know they have support and advice available at this time.”

It comes as the BCC downgraded its UK GDP growth expectations for 2020 to 0.8%, from its previous forecast of 1.0%. Outside of the 2008/09 financial crisis, this would be the weakest full-year growth outturn since 1992 and down sharply from UK GDP growth of 1.4% in 2019.

UK GDP growth is then expected to pick up in subsequent years: to 1.4% in 2021 and 1.6% in 2022. The BCC’s forecast indicates that by the end of 2022, the UK economy will have grown below its historic average growth rate of 2.6% for eight successive years, the longest period since records began.

The disruptive impact of Coronavirus is expected to weigh significantly on key drivers of UK GDP growth through the first half of 2020. A lack of clarity on the UK’s future trading relationship with the EU and other partners around the world and a struggling global economy is also predicted to limit UK’s near-term growth prospects:

Adam Marshall, Director General of the British Chambers of Commerce, added: “Coronavirus could further weaken an already stagnant UK economy, as many businesses are starting to report an impact on their cashflow and growth prospects.

“The Chancellor and the Bank of England have responded to the immediate challenge with measures to help firms hit by Coronavirus, and they must now ensure this support gets to businesses as quickly as possible.

“More will need to be done later in the year to boost business confidence and tackle prolonged economic stagnation.

"Securing new trading arrangements, taking real action to reduce the high upfront costs of doing business and putting spades in the ground on long-overdue infrastructure projects must be prioritised in order to secure our long-term economic prospects.”