Close Menu
No.1 in UK for Limited Company Liquidations
UK Liquidators

Insolvency Related News

Latest News from UK Liquidators

Low-Cost Liquidation
100% Confidential
Stop HMRC & Creditor Pressure
Partner-led Service

Working from Home Predicted to Badly Hit UK Economy

By Jon Munnery
2 September 2020

Widespread working from home among people who would previously have been based in offices in towns and cities across the country is being highlighted as potentially a major drag on overall activity within the UK economy.

In fact, a study conducted by the Centre for Economics and Business Research (CEBR) has concluded that if people who worked in offices prior to the Covid-19 pandemic don’t return to those spaces soon then the costs to the economy could be as high as £480 billion.

The consultancy firm CEBR is owned by Douglas McWilliams, who previously worked as the chief economic advisor to the Confederation of British Industry (CBI), a prominent business lobby group which itself has expressed serious concerns about the potential impact of widespread working from home.

The UK economy took a huge hit as the virus pandemic struck earlier this year and it’s not clear how long it might take for overall GDP to reach the levels recorded in late 2019 and early 2020.

According to the CEBR, that will depend partly on the extent to which working from home becomes normalised, with a lack of commuting and office occupancy expected to drag significantly on the economy and prevent GDP from reaching pre-Covid levels until as late as 2025.

“If we carry on working at home when at least half want to return, we run the risk of turning into a 90 per cent economy stuck a 10th down off its peak,” Mr McWilliams from CEBR is quoted as saying by the Guardian.

Businesses set to be most badly impacted by a lack of office space occupancy and routine commuting are likely to include sandwich shops, convenience stores and other retailers who rely on footfall to support their sales.

Retailers have been cutting jobs extensively in recent months with the virus crisis having made much worse economic conditions that were already very testing.

The corporate insolvency experts of Begbies Traynor said recently that the second half of 2020 will see a sharp rise in the number of business entering administration and liquidation, with hundreds of thousands of enterprises across the country reportedly showing signs of significant financial distress.

Jonathan Munnery
Partner
Is Liquidation the best option for you?

By completing the test, you will receive:

Your Liabilities & Assets
Types of Liquidation Available
Your Companies Health Risk
Alternatives to Consider
Related Articles
28/01/2021
Companies in ‘Significant Financial Distress’ Up by 27 Per Cent
The number of companies across the UK in a position of ‘significant financial distress’ increased by 27 per cent year-on-year between the final quarters of 2019 and 2020 respectively.
Read more
13/01/2021
Record Numbers of Small Firms Could Fold, Says FSB
A record number of small companies could fold over the course of 2021 unless swift action is taken to help them in the coming weeks.
Read more
05/01/2021
Lockdown Grants ‘Won’t Be Enough to Save Some Firms’
The government’s pledge to provide grants in support of businesses affected by the latest lockdown measures in England will not be enough to save many firms across the country.
Read more
Ready to Liquidate?
Express Liquidation Service
Ready to start liquidating today? Complete the form and a member of our team will be in touch.
Please note: By completing this form you are not liquidating your company
Contact the UK Liquidators Team

If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.

  • Free initial consultation
  • Strictly confidential
  • Fully licensed insolvency practitioners
  • Local office support
  • Named case handler throughout

Looking for immediate support?

Complete the below to get in touch

 
 
 
 
 
100% Free & Confidential Advice