Companies are operating at 53 per cent capacity compared to pre-lockdown levels, new research from the British Chambers of Commerce suggests.

The business group says the economy remains “in first gear” as it releases its latest coronavirus impact tracker.

The BCC believes tax cuts can stimulate a recovery as half of employers fear local lockdowns and lax consumer demand will continue to hamper a return to full capacity.

There are some positive signs, as the survey from early July – before Boris Johnson predicted a return to work by Christmas and eased Covid-19 restrictions further – shows companies are no longer seeing the sharp drop suffered at the beginning of the coronavirus outbreak.

However, BCC director general Adam Marshall says the findings “demonstrate that the UK’s economic restart is still very much in first gear”.

Nearly half of firms polled saw revenues drop last month, and late payments are affecting 43 per cent more firms than in the second half of 2019.

Marshall adds: “Businesses are grappling with reduced customer demand, an on-going cash crunch, and the potential for further lockdowns during an uncertain autumn and winter ahead.

“The prime minister’s encouragement to return to workplaces and further updates to business guidance will not be enough on their own.

“The time has come for the government to take radical steps to slash the tax burden around employment to help companies pay valued staff, rather than the revenue.”

More employees may begin coming back to offices, stimulating demand for town centre services.

However, the BBC reports data from jobs website Indeed that shows a 60 per cent reduction in vacancies compared with pre-coronavirus levels.

Indeed economist Jack Kennedy tells the BBC: “The furlough scheme has been an important lifeline to millions of people but the fear is there will be a sudden rise in unemployment after that umbilical cord has been severed.”