BUSINESSES will be breathing a sigh of relief after the Government announced the isolation period for positive Covid tests would be cut to five days – but more still needs to be done.

Businesses are continuing to tell us they are struggling with high levels of absence due to COVID, made worse by staff struggling to get the Lateral Flow Tests they need to prove they can return to work.

The reduction in isolation time will only help if urgent action is taken to ramp up the supply of tests, so employees are not isolating unnecessarily. Many firms are still worried that staff absences will critically impact their supply chains and put pressure on cash flow at a time when economic conditions are still very difficult.

Supply of tests is also crucial to building consumer confidence as many want to be assured that they are COVID-free before they go out and meet friends in hospitality and leisure premises.

As well as the issues posed by isolating staff, businesses are also still struggling to fill job vacancies with record numbers reporting staff shortages, according to the latest recruitment survey from the British Chambers of Commerce.

Firms reported a broad range of issues which contributed to the overall recruitment squeeze – this included disruption due to Covid and a drop in the availability of foreign staff.

This, coupled with the shortage of Lateral Flow Tests, is impacting on businesses’ ability to meet demand for goods and services – further adding to already acute supply chain pressures. With the next review of Plan B restrictions due in matter of days, businesses will want to know what the Government’s longer-term contingency plans are should a new variant create a fresh wave of serious infections including how they would support businesses impacted by any potential restrictions.