July 12, 2023 2.00 pm This story is over 7 months old

Light at the end of the tunnel: Promising business outlook despite closures

Confidence and tourism is on the rise

By Local Democracy Reporter

Lincolnshire businesses remain optimistic about their financial future despite numerous closures, a county councillor has claimed.

Environment portfolio holder Councillor Colin Davie (Conservative) told a recent meeting that 72% of businesses in the county were confident in their outlook, as reported to the growth hub.

He also said that the tourism industry is also on the rebound, with the visitor economy improving by 28.9% compared to its 2021 figures.

The Environment & Economy Scrutiny Committee meeting on Tuesday heard that the impact of pandemic-induced supply chain disruption is decreasing, with 59% of businesses reporting no disruption in May of this year, a slight increase from 55% in April.

Councillor Davie said: “We have some new evidence that describes the economic impact of the visitor economy.

“It shows that the sector is recovering well following the pandemic. Whilst the direction of travel is positive, we need to recognise that 2021 was a very disturbed year.”

While the future may seem promising, the Conservative councillor underscored the continuing challenges faced by Lincolnshire businesses, primarily inflation and the ongoing cost of living crisis.

He continued: “These figures probably hide the fact that costs for businesses have probably risen between 40%-50% and there a still significant challenges that are clearly being demonstrated by the closure of businesses, not just in Lincoln but also the coastal areas.”

Superdry in Lincoln’s Cornhill. | Photo: Joseph Verney for The Lincolnite

Lincoln’s Cornhill Superdry store has become the latest victim of this trend, with a sign recently being put in the window thanking customers for their support as it shut.

In recent weeks, the popular Angel Coffee House on Free School Lane and Cooplands Bakery located at the junction of Tentercroft Street have also shut their doors for good.

City of Lincoln Council has blamed the series of closures in the city centre on soaring rents and energy prices.

Read more – What caused Lincolnshire’s business closure epidemic, and what can stop it?