TAKING over the family business Munir Tatar & Associates back in February, Account Serkan Tatar spoke with Londra Gazete about the effect Covid has had on the business as well as consumers. As the UK moves along the road map of out of lockdown Tatar raises the question many businesses will face government supports like furlough set to end and loan repayments set to start in the coming months ahead.
“In terms of the general outlook on the current UK economic situation, there are intermittent patterns since the pandemic. Various advocates underlined that 2021 economic growth is set to be higher but no higher than pre-coronavirus. Hence, the vaccine rollout, easing of lockdown and opening of businesses have been encouraging for our clients. Primarily the hospitality sector slowly but surely is trying to work its way up but not to full normality. It has been admirable how restaurants reacted and acted within the current circumstances. They have adapted well to new technology and changing menus. Grants and furlough provided by the government have been a safety net for businesses however, the aftermath is vital. Whilst there is the demand, of customers people were comfortable because the cost was covered by the government but the main question is what’s going to happen when furlough is put to an end. This is the main question accountants are constantly asked.
“Furlough support has been very crucial during the pandemic, not a generous giveaway but they to go ahead with it. It is a valuable approach but it has a cost too. For instance, the bounce back grant or furlough does come at a cost and now the UK debt is almost 100 per cent GDP. Naturally, one must be pragmatic and ask how this debt would be paid back. This could occur through inflations or raise in taxes. The government has left a few clues that a corporate tax increase could be possible in the future. Money borrowed has to be repaid and that’s a very tough decision.”
Looking at how the first 6 months of Brexit effect on the economy may have not initially been felt, Tatar said “In general, there is a great amount of instability and moving parts in the economy. Brexit has been unnoticed this year due to coronavirus but it’s had a massive impact on international trade. Concerning international exports, there has been a mighty increase in cost and this naturally will have a long-term effect on trade too. Accounts let business owners know they have to manage and accept. Withal, the patience portrayed by businesses and the right mind-set has allowed them to continue. We’re hoping the worse is over, the road to recovery should be positive for the future.”
