FILE PHOTO: Adam Marshall, Director General of the BCC speaks at the the British Chamber of Commerce annual conference in London, Britain, March 28, 2019. REUTERS/Peter Nicholls
LONDON (Reuters) – More British companies have reported an increase in turnover as the economy reopens following lockdown, but many remain strapped for cash, a business survey showed on Wednesday.
The British Chambers of Commerce (BCC) said 38% of businesses reported a rise in revenue in its latest weekly survey, up from 34%. Another 38% said turnover had fallen.
“While some firms are seeing improvements in trading conditions, we are still very much in the eye of the storm, with further turbulence ahead,” BCC Director General Adam Marshall said.
The survey showed 39% of companies have three months or less of cash in reserve.
With so many businesses on a precarious footing, Marshall said the government would need to take more action to support them.
“Steps to reduce the burden of employers’ National Insurance contributions, big new incentives for business investment, and targeted support to help businesses placed under local lockdowns all need to be put in place now,” he said.
“Ministers must not wait until the economic storm is once again at fever pitch before they act.”
Reporting by Andy Bruce, editing by David Milliken