AUS
NZ
UK
CA
USA
IND
.jpg)
Summary
- Industry association has asked for fresh financial support as the British economy expected to enter a double dip recession
- BCC chief Adam Marshall has written to Chancellor Rishi Sunak to adopt a package that would cover the whole of 2021
Rishi Sunak, chancellor, British exchequer has come under pressure from various lobby groups to offer more Covid support to the UK businesses. Government figures are likely to confirm that the nation is under a double-dip recession with many businesses finding it difficult to survive.
The British Chamber of Commerce has asked the government for more cash grants. The national industrial lobby wants Sunak to extend the ongoing tax cut benefits and even expand on the existing list to help the struggling businesses survive the stricter lockdown restrictions. Adam Marshall, director general, BCC has written to the chancellor for prolonging the business rate reliefs, give a higher number of cash grants, and continue with the existing VAT deferral schemes. He has asked the government to provide aid throughout this year.
(Image source: ©Kalkine Group 2020)
The association insisted for an immediate action. It said that its members were not in a financial position to wait for the help till March 3, when the budget is to be announced. Sunak had indicated earlier that the government would be announcing its renewed response to the pandemic during the upcoming budget.
According to media reports, the ONS (Office for National Statistics) figures could point out that the economy slowed down again in November, when a lockdown was imposed in the nation to contain the rapidly rising Covid cases.
Economic experts are projecting the month’s GDP to be lower by 5.7 per cent compared to October 2020. UK’s GDP dropped by 19 per cent for the second quarter last year as a result of the coronavirus pandemic.
The impact of the latest set of restrictions has been felt most badly by the hospitality sector as cafes, restaurants, bars, and pubs had to either close down or operate only as takeaways. Another worst affected sector has been retail, whose bottom lines were also hit severely due to the mandatory store closures. At the same time, other businesses such as construction, manufacturing and essential shops were allowed to operate.
NRG’s plea
The consultancy firm Northern Research Group has also called upon the government for more financial help to the people during the ongoing lockdown. Jake Berry, chairman, NRG said that while it is commendable that the government had provided unprecedented level of support to the needy, but withdrawing it abruptly could lead to long-term damages.
He added that the treasury should now provide stability instead of any uncertainty, as the times are still challenging. It should continue to support people and businesses like it did in the past.
Within a few weeks from now, most of the government tax reliefs for businesses and furlough support to individuals are set to expire.
Treasury’s response
According to sources, a treasury spokesperson said that government has always put people and businesses at the heart of its pandemic response. Everyone should feel assured that this approach would not change even now or in future, he added.
