Express & Star comment: Figures paint a bleak economic picture

Less than half of the firms set up in the last five years failed to make it to the end of 2019, with many of them folding within two years of starting up.

And after a year when thousands of businesses across our region have been forced to shut up shop and lay off staff due to lockdown measures, the situation is likely to deteriorate further.

The message is crystal clear: Things were bad before Covid hit, and they are only going to get worse.

Business leaders fear the New Year could see a flood of firms going to the wall, with some that have just about managed to hold on no longer able to keep their heads above water.

There are genuine concerns about a widespread collapse, which would obviously have a huge impact on an unemployment rate that is already expected to surge.

Part of the problem – and this especially applies to smaller start-ups – is cash flow, which simply cannot be planned for when everyone is naturally holding back on investment as a result of the pandemic.

Order books have collapsed, and the bottom line is that disaster is on the horizon should restrictions continue well into next year.

The uncertainty surrounding Brexit and its immediate impact on the import and export of goods and materials is another huge area of concern.

It is not just a business crisis we face, with our education system also up against it due to coronavirus.

Schools across our region have been badly hampered by the virus.

Pupils missed three months of classes during the first lockdown, and the majority will have seen their return to school after the summer severely disrupted.

Thousands of pupils have been forced to have time off to isolate due to cases in their classroom bubbles, while many schools continue to endure serious staffing issues.

Despite the best efforts of our schools, large numbers of children have not had access to the right equipment when they have been off.

And youngsters who are preparing to take GCSE and A-levels next year are currently taking mock exams having not yet been taught crucial elements of the curriculum.

Meanwhile our universities are likely to see a serious financial hit next year because of rising costs associated with the pandemic.

For the time being the majority of institutions are financially stable, with some even seeing a rise in student numbers this year.

But questions remain over the type of working world these students will be entering, particularly if unemployment hits the heights that some experts are forecasting.

Anyone who thinks that all of this will not have a massive knock on effect in years to come is a fool.

There are no easy solutions, but it is clear that the roll out of the vaccine is the key factor in preserving our future economy.

If vaccine distribution is widespread – and available to sufficient numbers – then wer could see an end to restrictions by early Spring.

Only then can our Covid fightback truly begin.

Sadly, for many businesses across our region, it may come too late.