U.K. Could Ease Lockdown Monday With Firms Warning of Difficulty

(C) Bloomberg. A pedestrian passes the Bank of England (BOE) in the City of London, U.K., on Wednesday, May 6, 2020. Bank of England policy makers will meet this week knowing that they’ll probably have to do more to combat the U.K.’s economic slump, if not now then soon. Photographer: Simon Dawson/Bloomberg

(Bloomberg) — The U.K. is set to ease parts of its nationwide lockdown Monday, with companies warning that continuing social distancing will hurt any economic recovery.

Speaking to Parliament Wednesday, Prime Minister Boris Johnson said he wants to start relaxing some measures from next week “if we possibly can,” with a full statement on his plans due Sunday. The premier is under pressure to get the British economy moving again without causing another surge of the virus, after the U.K. became the first European nation to record more than 30,000 deaths from the pandemic.

Seeking to mitigate the growing economic damage of the coronavirus crisis, Johnson’s government is drawing up guidance for employers on how to return to work safely as part of relaxing lockdown restrictions. But in a sign of the challenges facing Britain, a survey by the Institute of Directors said only about half of firms would be able to operate at full capacity under social distancing rules, and a majority would take more than a month to return to pre-lockdown activity levels even if all measures were lifted.

“Leaving lockdown, when it happens, won’t be plain sailing for business,” said Jonathan Geldart, director-general of the IoD, whose survey covered 800 company directors. “Social distancing presents an unprecedented challenge for firms, and some may be simply unable to make it work.”

Here’s How Boris Johnson Is Planning to Lift the U.K.’s Lockdown

The IoD’s findings temper some of the optimism from a similar British Chambers of Commerce survey this week, which suggested most U.K. businesses could be up and running days after restrictions are lifted. Chancellor of the Exchequer Rishi Sunak is currently considering how to wind down some of the unprecedented economic support that has kept British firms afloat, facing warnings of mass insolvencies and redundancies if he moves too quickly.

On the national lockdown, various newspaper reports suggested the easements Johnson is likely to announce Sunday include measures such as allowing unlimited exercise, sunbathing and picnics in parks. 10 Downing Street declined to comment on the specifics of Johnson’s plans.

“What people want to see is a careful, sensible program attracting the widest possible support to continue to suppress the disease right down but to allow our economy to start up again,” Johnson said in Parliament.

Johnson Seeks Path Between Friends and Foes to End U.K. Lockdown

Key to the next phase of the government’s plan is a mass program of testing and tracking coronavirus cases. With the help of an app, the aim is to be able to tell people who’ve been exposed to carriers of the virus that they need to isolate, while allowing life to get back to normal. Johnson set a new goal to raise testing capacity to 200,000 a day by the end of the month, from about 108,000 now.

Communities Secretary Robert Jenrick said the greater testing capacity may allow for lockdown restrictions to be re-imposed in targeted areas if the virus flares up in future, but the government’s preference is for measures to be relaxed everywhere at once.

In other developments:

• People may be required to wear face masks on public transport and border checks could be introduced in the next phase of the U.K. response, the Financial Times reported
• Speaking on ITV’s “Peston” program, former Prime Minister Gordon Brown said the government will need to step in to stop companies from failing in in the coming months
• Jenrick said the government wants infrastructure and construction work to re-commence as soon as it is safe to do so, and the pandemic wouldn’t stop plans to boost investment in deprived areas of the U.K.

(C)2020 Bloomberg L.P.