The Financial Impact On Regions Across The UK

A recent survey of small business owners in the UK reveals details about how different regions in the UK are being financially impacted by coronavirus.

As a nation we’ve been informed about the figures on a large scale basis, but little is known about how the different regions are coping with the changes to the economy.

Below we share some details from the survey about which areas have been hit the hardest.


Biggest Financial Hit:

London, Scotland, North East

The average lost earnings for SME’s across the UK is £11,779 – which is a hard figure to see.

However, figures show that there are many areas that have been hit far harder than this.

London sees the biggest loss of earnings at £17,074, and this figure far exceeds other regions in the UK.

On the one hand, this news isn’t hugely surprising – with the capital city being a lucrative place to work, with high wages, high living costs and high tourism. Many of these have had to come to a halt due to Covid-19.

Scotland and The North East are the next regions that have been severely hit. Scotland has a loss of income of £15,484 and the North East a figure of £15,039

  • London – £17,074
  • Scotland – £15,483
  • North East England – £15,039
  • South East England – £12,753
  • Wales – £11,804
  • North West England – £11,494
  • The Midlands – £11,079
  • South West England – £10,989

Regions Least Impacted: South West & South East

Of course, every region has been hugely impacted by coronavirus, but as we compare across the UK we can see that some have been less affected than others.

The South West has seen only 2% of businesses shut their doors for good during the coronavirus pandemic, and the South East has seen 3% of businesses permanently closed.

At the top end of this data is London, which has seen 7% of businesses permanently closed and the North West has seen a slightly less figure of 6%.

Percentage Of Permanent Business Closures

  • South West 2%
  • South East 3%
  • Wales – 4%
  • North East – 4%
  • Midlands – 4%
  • Scotland – 5%
  • North West – 6%
  • London – 7%

Planning For The Future: South West & South East

All of this information helps us to understand why some regions are more confident about continuing on as normal than others.

The South West & the South East have both seen the least amount of business closures, and so it’s not surprising that 79% and 78% of businesses in those regions are planning to continue as normal.

The North West, although seeing one of the highest figures for business closures, seem resilient in the face of this – as 76% of business owners plan to continue on as normal.

At the bottom of the list is, of course, London – where only 70% of businesses feel confident about continuing as normal in a post lockdown Britain.

  • South West – 79 per cent
  • South East – 78 per cent
  • North West – 76 per cent
  • Scotland – 76 per cent
  • North East – 75 per cent
  • Midlands – 74 per cent
  • Wales – 74 per cent
  • London – 70 per cent

For more information from this survey visit simplybusiness.co.uk.

 

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