Business cash deposits down over 40% year-on-year due to pandemic
Latest data from the Post Office’s January Cash Tracker shows the impact the Covid-19 pandemic has had on SMEs, as business cash deposits are down over 40% compared to January 2020. In contrast, personal cash deposits were up 4.6%.
Business cash deposits totalled £582m last month. That compares to £788m that was deposited in December.
Post Office data indicates businesses were better prepared for the December lockdown compared with the first UK-wide lockdown in Spring last year when business deposits fell to £313m in April. They totalled £345m in May and £493m in June before recovering over the summer.
In January, personal cash withdrawals amounted to £463m. That was down almost 28% on December (£640.7m) and also down 24.3% on January 2020 when £611m was withdrawn. The figure for January was the lowest amount withdrawn at Post Offices counters since May 2020 (£450m).
Overall, cash deposits and withdrawals by personal and business customers amounted to £1.99bn in January. This compares to £2.43bn in December 2020. December and the run-up to Christmas always sees the biggest cash deposits and withdrawals over the counter at Post Office’s 11,500 branches.
Commenting on January’s data, Martin Kearsley, Director of Banking at the Post Office, said: “An over 40% fall in business cash deposits compared with same period last year continues to highlight the impact the Covid-19 lockdown is having on the UK’s small businesses.”