UK economic output reduces to 31% as result of coronavirus lockdown

Research published by the Centre for Economics and Business Research (CEBR) has revealed that UK economic output has reduced to 31% as a result of the coronavirus (COVID-19) lockdown.

Research published by the Centre for Economics and Business Research (CEBR) has revealed that UK economic output has reduced to 31% as a result of the coronavirus (COVID-19) lockdown.

The CEBR warned that the lockdown has 'extremely severe economic consequences' for the UK. According to the research, the manufacturing sector is set to see the highest fall in output in absolute terms as a result of workers who produce goods being unable to do so remotely from home. The CEBR estimates that this will cost the UK economy £500 million a day, with production in the sector reduced to 69%.

The Centre also stated that the accommodation and food services sector is likely to be 'disproportionately impacted'. However, the UK services sector is less likely to be adversely affected, as employees in this sector have greater ability to work remotely.

According to the CEBR, the COVID-19 lockdown is costing the UK £2.4 billion per day.

Douglas McWilliams, Deputy Chairman of the CEBR, said: 'These results show that the manufacturing sector, as well as the more obvious sectors such as retail and leisure, is one of the more badly hit by the virus and economic slowdown.

'Many of the government measures do little to help capital intensive sectors like manufacturing, which benefits relatively less from furloughing employees and is essentially excluded from rate relief.'

ACCA
About our team

Brookwood Accountants is a firm of Chartered Certified Accountants. We aim to provide our clients with a cost effective accountancy solution which adds value to their business.

Learn more

Latest news
Contact Details

Please call:
01926 257 610

Brookwood Accountants Ltd, 158A Parade, Royal Leamington Spa, Warwickshire CV32 4AE

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

© 2020 Brookwood Accountants Ltd. All rights reserved. powered by totalSOLUTION

We use cookies on this website, you can find more information about cookies here.