UK economy receives fresh warnings before Rishi Sunak addresses MPs May 18, 2020 Chancellor Rishi Sunak is preparing to address MPs today following new dire predictions of the impact of coronavirus on the UK economy. Sunak is set to face questions over how the UK will pay for huge public borrowing currently propping up the economy. The Treasury boss extended his job retention scheme to October last week, [...]
Job market set for ‘significant’ downturn despite furlough scheme May 18, 2020 The UK job market is set for a “significant turn for the worse” over the next three months, a new report from the Chartered Institute of Professional Development (CIPD) has found. According to the research, more than half of private sector firms are preparing to freeze pay for the next 12 months, while hiring intentions [...]
Treasury mulling plans for ‘bad bank’ to manage stakes in bailed-out firms May 17, 2020 The Treasury is considering plans to develop a so-called “bad bank” in order to hold stake in bailed out companies, the Sunday Times reported, amid fears that key firms could fail due to the coronavirus pandemic. The initiative reflects similar steps taken by the Labour party during the 2008 financial crisis, when it set up [...]
When will the UK economy recover from coronavirus? May 15, 2020 The UK economy is set for its worst contraction since at least the Great Depression this year as the coronavirus lockdown brings activity to a halt. There’s little doubt about that. There is doubt about what comes next, however. Economists have made huge numbers of predictions, using an array of letters to describe the recovery. [...]
Exclusive: Brits think lockdown measures will hinder economic recovery May 14, 2020 Britons think the UK economy will be unable to recover quickly if the coronavirus lockdown measures continue, according to an exclusive poll for City A.M. The poll, conducted by Redfield and Wilton Strategies, found that 56 per cent of Britons believe that if the lockdown measures continue, the UK economy will reach a point at [...]
Job retention scheme could cost £84bn, says UK budget watchdog May 14, 2020 The UK’s budget watchdog has said the coronavirus job retention scheme could cost £84bn this year, which would push up government borrowing to well north of £300bn. It comes after chancellor Rishi Sunak extended the furlough scheme on Tuesday. Under the programme, the government pays 80 per cent of “furloughed” workers’ wages up to £2,500 [...]
Three quarters of UK businesses apply for furlough scheme May 14, 2020 More than three quarters of UK businesses have applied for the government’s job retention scheme, according to an official survey that laid bare the extent to which the furlough programme is supporting the economy. The Office for National Statistics (ONS) said 76 per cent of UK firms had applied for the scheme, up from 66 [...]
Starling and Funding Circle to provide £300m in small business loans May 13, 2020 Starling Bank and Funding Circle today said they have teamed up to provide £300m in loans to small firms under the coronavirus business interruption loan scheme (CBILS). Starling will lend through Funding Circle alongside other institutional investors, granting access to funding for more than 4,000 small businesses across the UK. Both fintech firms have been [...]
Scrapping the furlough scheme would have been a disaster May 13, 2020 Businesses can breathe a little easier today. Fears that the Chancellor would cut back on the furlough scheme that is subsidising wages for a million businesses were put to rest as he confirmed that it would run into the Autumn. After days of mixed messages, Rishi Sunak’s reassurances that the withdrawal of support would not [...]
Why staying close to your accountant matters more now May 13, 2020 Accountants exist to ensure the accuracy of financial statements and advise how to save money or boost revenue. The coronavirus pandemic, then, with its profound and deepening impact on the economy has jolted the profession like all others. Depending on their role, accountants have been battling to keep on top of the unprecedented flurry of [...]