UK economy shows green shoots as more people return to high street

The economy is showing signs of recovery, with recent ONS figures showing that retail sales were rising across the country.

July retail sales volumes increased by 3.6% when compared with June, and are three per cent above the pre-pandemic levels in February 2020, while interestingly, online sales dipped by seven per cent as people started returning to the high street.

Responding to these latest figures, Federation of Small Businesses (FSB) National Chair Mike Cherry, said, “In what is no doubt one of the toughest periods of trade for small businesses in recent history, it’s promising to see that people are indeed confident enough to go out and shop once again.

“One clear sign that people are physically shopping once again is the first drop in online sales (down 7% on June ’20) since November 2019, which after a record period of online sales throughout lockdown was inevitable. But many small firms, especially in recent months have either expanded or developed their online presence, so it’s vital that both physical as well as online sales remain buoyant.”

Mike added, “Many small firms have been only open for a matter of weeks, but the support that was on hand such as the job retention scheme, incentives like Eat Out to Help Out and access to funds via local authority grants are all going to be closing or wound down over the next few weeks or months, which means that the struggles for small businesses show no end in sight.

“We are in the midst of the deepest recession on record, and we need the Government to take a proactive approach to how it will support business right across the country. After months of measures to ensure job and business survival, the next stage is about how we can grow once again to aid business and job creation.

“We are calling on the Government to issue the most pro-business, pro-self-employed Budget ever seen that encourages innovation, brings goods and services to market while avoiding taxes that could further stifle already struggling businesses.”

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