Hundreds of new businesses set up in Gloucestershire during lockdown

Hundreds of new businesses have been set up in Gloucestershire during lockdown.

In the Stroud district there have been 186 new businesses registered in April, May and June, with 166 in the Cotswolds and 463 in South Gloucestershire.

Across the UK 180,000 new businesses have been registered, with retail by mail order/internet making up the majority at just under seven per cent.

Around 5,000 companies have filed for insolvency since March, including seven in the Stroud district, seven in the Cotswolds and 20 in South Gloucestershire.

HM Treasury says it has spent around £160bn in support for businesses.

Economist Stuart Adam said that without government intervention, the situation might have been worse, but businesses coming out of lockdown faced multiple challenges.

Social distancing measures, reduced spending, larger debt and general market uncertainty could all have an impact, he said.

He said: “Since many firms will undoubtedly shrink or go out of business and jobs will be lost – especially as the furlough scheme comes to an end – it will be vital over the coming months and years for others to start up or expand, to fill the gap and employ those left out of work.”

A HM Treasury spokesperson said: “We’ve outlined a three point plan for supporting businesses through the crisis and spurring the UK’s economic recovery.

“The first stage of this was our £160 billion support package for business that included our job retention scheme, which has protected more than nine million jobs and has been extended until the end of October.

“Earlier this month we announced the second stage of our plan which aims to support, protect, and create jobs across the UK. It includes a 15 percent VAT cut for hospitality, leisure and retail, the Coronavirus Job Retention Scheme Bonus, and job creation through investment in greening homes and buildings.

“As the economy re-opens, we will continue to look at how to adjust our support in a way that ensures people can get back to work, protecting both the UK economy and the livelihoods of people across the country.”

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