Coronavirus: The local businesses set to suffer post-lockdown

Abigail Fenton
·2-min read
Two-thirds of Brits are planning to spend less money over the next year, according to a survey. Above, cafes and restaurants in Soho, London. Photo: Getty

Two in three Brits will spend less over the next 12 months, and some industries are expected to fare worse than others.

In a survey of 2,000 UK adults by personal finance comparison site Finder, 66% said they expect to reduce their spending in certain industries over the next year.

However, not all consumers have plans to tighten their belts. A quarter (26%) said they expect to spend the same amount or more compared with before lockdown, across all local businesses.

The businesses that will be hit the hardest are restaurants, with over a third of Brits (35%) saying they will spend less at eateries over the next year than they did previously.

READ MORE: Consumer spending fell by 36.5% annually in April — Barclaycard

Following this are takeaways and clothing stores, with over a quarter (27%) of responders planning to spend less of their money on these businesses.

Pubs (26%) and cafes (25%) may also not fare so well, with about a quarter of consumers expecting to reduce their spending over the next year.

Nurseries and childcare, solicitors and accountants will be sectors least affected, with only 4% saying they plan to rein in their spending on each of these areas.

It is also relatively good news for builders, painters and decorators and plumbers, who will remain unscatched, with only a 5% decrease in consumer spending expected.

READ MORE: Two in five families spending more money on children during lockdown —survey

“The last few months have brought a huge amount of disruption to most sectors, and this is reflected in the number of businesses that have sought out the government-backed [coronavirus business interruption loan scheme] and bounce back loan schemes,” said Matt Slater, credit and loans specialist at Finder.

“This will have been a huge help to a lot of local businesses, but they still have a lot of work to do in order to survive going forward. Many will need to spend time and money rethinking their business model to offer the same service while being compliant with new government regulations.

“They will also have to do all of this against the backdrop of less income, as shown by this research.”