"As the UK heads towards the end of its third lockdown, 41% of small and medium-sized businesses confirmed in a survey published this week that their cash position had weakened significantly during the first quarter. This situation is far worse in the tourism and hospitality sectors where the figure is closer to 80%

While this is a fairly obvious conclusion given the fact that the country was closed for the entire period, it serves as a reminder of the true situation facing the economy in the medium term.

Headline grabbing vaccination data and the support being given by both the Treasury and bank of England hide what remains a precarious situation and underlines the discussion that is taking place regarding the need for a further cut in interest rates later in the year.

For now, the Government is promoting the feelgood factor generated by the success of the vaccination programme while warning that the third wave sweeping through Europe currently illustrates that the country isn’t out of the woods just yet.

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