FINANCE
REASONS
TO BE
CHEERFUL
Andrew Rowe, a partner at
Baldwins, on how Teesside
can bounce back from Covid
T
he Sunday Times recently reported that when
confronted with around 3.5m job losses if the
country does not reopen over the summer,
Boris Johnson apparently responded with
considerable shock.
The prospect of soaring unemployment must
surely have been at the forefront of the government’s
decision to announce the next stage of easing of
lockdown.
The “one-metre plus” rule, in particular, now means
that we are all able to legally enjoy a drink in the pub
and finally have our hair cut by a professional.
This should have a major positive impact on the
hospitality and well-being service industries, even if
venues can still only operate at around 70 per cent
capacity. Further hot summer days will help boost trade
for those venues with outdoor areas.
At Baldwins, we have looked at the Covid-19 crisis
with our clients in three phases – survive, revive and
thrive.
Accessing government support via rates and wages
grants and obtaining tax and loan repayment holidays
was the initial ‘survive’ phase. We have actively
supported businesses in obtaining several million
pounds in CBILS and bounce back loans to ensure
they have enough liquidity to make changes to their
business model. This involved preparation of cash flow
forecasts with ‘what if?’ scenarios, right through to the
completion of forms on their behalf, all done remotely.
We are now working hard on the next ‘revive’ stage
as businesses plan for the new normal – how they
interact with customers and suppliers and how they
can make that work and most importantly become
profitable, at which point we will be working with our
clients on the ‘thrive’ phase.
At Baldwins, we were already well versed in
digital working. Given our widespread use of cloud
technology, we were able to move to remote working
quickly and seamlessly.
We listened to our teams and moved swiftly to
accommodate their individual needs to work more
flexibly, especially those with childcare responsibilities.
We are now gearing up for a safe, staged return
to office working, which will include new policies that
will allow our teams to work safely on-site at client
premises.
What
might the
government do
next?
The UK has one of the highest VAT rates in Europe, so
we do expect that there might be a cut in VAT as there
was in 2008 to stimulate consumer spending and possibly
some sort of scrappage scheme to encourage new car
purchases, together with further support to encourage a
move to electric vehicles.
In the hospitality sector we may well see a relaxation of
licensing laws to enable businesses to work more flexibly.
What about Teesside?
On Teesside we are incredibly lucky to have the Tees
Valley Combined Authority with a business-focused mayor
in Ben Houchen.
When combined with new council leaders across
the area, who want to work closely with businesses, it
fortunately means that nothing is off the table.
We as professionals, will be working hard to support
our clients needing to access support from the local
authorities and present business cases that are easy to
say “yes” to.
For example, we recently helped a digital client obtain
significant grant support from Tees Valley Business
Compass to enable them to expand and move to the
Albert North digital cluster in Middlesbrough. This will
enable them to create 20 high-level, well-paid jobs in
central Middlesbrough.
The grant support will have a positive impact on
the wider local economy by generating trade for local
businesses to creating opportunities for those studying at
local colleges and university.
In addition, we are supportive of Middlesbrough mayor
Andy Preston’s plans to attract more business to the town
centre and are looking to influence this wherever we can.
Times may be difficult, but Baldwins is working hard at
every level to ensure our local businesses on Teesside are
able to survive the crisis, will be in a position to reopen
at the correct time and are able to capitalise on new
business opportunities.
Andrew Rowe
Partner, Baldwins
The voice of business in the Tees region | 53