3. Business Impact of Coronavirus (COVID-19) Survey

Financial performance

Figure 1: 45% of businesses that responded reported that their turnover was “lower than normal” Effect on turnover, percentage of all responding businesses, UK, 9 March to 22 March 2020 Source: Office for National Statistics – Coronavirus, the UK economy and society, faster indicators Notes: Bars will not sum to 100 as a fourth category, Financial performance not affected, is not included on this chart. Download this chart Figure 1: 45% of businesses that responded reported that their turnover was “lower than normal” Image .csv .xls

Of the businesses that had responded to date, approximately 45% reported that their turnover was lower than their normal range, 5% reported their turnover was higher than their normal range, and 9% reported that while their turnover had been affected between the period 9 to 22 March 2020, it was still within their normal range. Of the affected businesses, 98% of those that reported that their turnover was abnormally affected between this period attributed this to the coronavirus (COVID-19). These effects were widespread across all sectors.

Most of the period that businesses were asked to refer to and report on occurred before the closure of all “non-essential” businesses, which formally came into effect from 20 March 2020. This included nightclubs, theatres, cinemas, gyms and leisure centres being ordered to close immediately from this date in response to COVID-19. It is likely that the weakness in turnover reported by many businesses reflects, in part, consumers’ anticipation of that announcement and their increase in social distancing.

Workforce

Figure 2: Measures taken to manage workforce as a result of COVID-19 Percentage of all businesses, UK, 9 March to 22 March 2020 Source: Office for National Statistics – Coronavirus, the UK economy and society, faster indicators Notes: The percentages in this chart will not sum to 100 as businesses were able to select multiple options. Download this chart Figure 2: Measures taken to manage workforce as a result of COVID-19 Image .csv .xls

Of businesses that responded to our survey, almost half (46%) reported encouraging their staff to work from home between 9 March and 22 March 2020, with 46% of businesses making it mandatory for staff to work from home. However, it should be noted that there is likely overlap in these figures.

Over a quarter (27%) of responding businesses said they were reducing staff levels in the short term in the period 9 March to 22 March 2020, while 5% reported that they were recruiting staff in the short term.

Prices

Figure 3: Impact on prices bought and sold Percentage of all responding businesses, UK, 9 March to 22 March 2020 Source: Office for National Statistics – Coronavirus, the UK economy and society, faster indicators Notes: “Other” category includes responses for "mixed changes" and "not sure". Download this chart Figure 3: Impact on prices bought and sold Image .csv .xls

Between 9 March and 22 March 2020, prices of materials, goods or services bought generally stayed the same for 63% of responding businesses. However, 12% of responding businesses reported that prices had increased.

In the same period, 68% of responding businesses reported not having to change the price of items they sold.

Of businesses that responded, 48% were able to get required materials, goods or services from within the UK in the given period. An additional 19% of reporting business were able to get the required materials, goods or services but had to change suppliers to do so. Of reporting businesses, 13% were unable to get required materials, goods or services.

Trade and supply chains

Figure 4: The majority of importing and exporting businesses felt the impact of COVID-19 in the past two weeks Percentage of all responding businesses, UK, 9 March to 22 March 2020 Source: Office for National Statistics – Coronavirus, the UK economy and society, faster indicators Notes: These data include goods and services for import and export. Download this chart Figure 4: The majority of importing and exporting businesses felt the impact of COVID-19 in the past two weeks Image .csv .xls

Of businesses that responded to our survey, a higher percentage of businesses reported exports being affected by COVID-19 than unaffected (20% and 14%, respectively). The same pattern was seen regarding the impact on imports (24% and 18%, respectively). Excluding businesses that said the question was not applicable, almost three-fifths (59% of exporters and 57% of importers) of respondents said their trade had been affected by COVID-19.