Coherent Identifier About this item: 20.500.12592/w4mb3x

Bouncebackability - The UK corporate sector’s recovery from Covid-19

31 May 2022

Summary

This should be a temporary factor and have limited effect in the long-term but it could be interacting with the time-limited nature of the ‘super-deduction’ such that some firms will miss out on the current tax-advantage (although the upcoming increase in the corporate tax rate reduces the difference in the tax benefits for investing now). [...] Unfortunately, the timescale of the survey makes conclusions relating to the impact of the pandemic difficult, especially as some of the activity might have been front-loaded as found by the CEP and CBI. [...] 25 The impact of working from home on the economic geography of the UK is the subject of a follow-up paper as part of the Economic 2030 Inquiry. [...] These shifts have been important for understanding the scale of the economic changes during the pandemic and, given that global demand for goods is still likely to be affected by the impact of the pandemic, are a big factor in driving rising inflation and the cost of living crisis. [...] The analysis in the report is intended to provide a comprehensive stocktake of how the pandemic has affected firms and what that means for the future of the economy.

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