Research by the bank Santander UK has found that owners of SMEs anticipate that their recovery from the COVID-19 pandemic will take until the summer of next year.

Of the SMEs that Santander spoke to, a total of 8% – which amounts to one out of every 12 – feel that they will not make it through the pandemic, despite the fact that there is now a working vaccine being distributed throughout the country. Furthermore, an additional 21% stated that they cannot be certain that they will still be operating by the time the current national lockdown is brought to an end.

Beyond these stark figures, there are significant differences in the outlook among SMEs by region when it comes to the effect that the pandemic is expected to have on profits. Those situated within London anticipate their profits to have fallen 3.8% by March, in comparison with the period before COVID-19 hit.

This is a lot lower than the expected figure for other regions. For example, SMEs in the Humber and Yorkshire are predicting a profit drop of 8%. This makes seeking out qualified accounting services in South Yorkshire potentially a lifesaver for those firms.

Speaking to East Midlands Business Link, Susan Davies from Santander UK said:

“While there is no ‘silver bullet’ solution, extensions to VAT deferrals, the furlough scheme and business rates relief could provide businesses with additional breathing space.”

The expected decline in profits is even steeper in other regions, such as the West Midlands at 9.3% and the East Midlands at 11.6%.