Business News Round Up (02/03/2021)
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Scottish firms confident about return to normality by end of 2021 – but more support urged
Bosses of small businesses are highly optimistic their businesses will return to pre-Covid normality by the end of the year, according to a new survey. But the shorter-term picture is not quite so optimistic, prompting calls to ensure firms have the support they need to survive. Business financial platform Tide has found 64% of small business leaders with up to 50 staff agreed it was likely that, with the successful vaccine rollout, their company could get back to normal before the end of 2021. That said, only about a quarter expect to see their firm’s income increase over the next three months – and a fifth expect to have to make redundancies once the furlough scheme ends. A further 21% are unsure if they will be able to keep people on. Almost a third of small firms said extending the furlough scheme would be crucial to their business’ survival. It echoes calls from many quarters to prolong the initiative – officially known as the Coronavirus Job Retention Scheme – beyond the current end date of April 30.
Annual Chamber survey shows dual impact of Covid-19 and Brexit on North West business
This year’s first business survey conducted jointly by North West based Chambers of Commerce shows that businesses are suffering from the dual impact of Covid-19 and Brexit and need continued support to tide them over current difficulties. The third national lockdown has contributed to a sharp decrease in demand, according to the COVID-19 and Brexit Impact Tracker survey conducted between 18th January and 2nd February by British Chambers of Commerce (BCC). The BCC’s previous survey, the Economic Survey for the fourth quarter of 2020 showed that demand had weakened to levels similar to those recorded in June 2020. The latest survey results showed that businesses based in the North West faced reduced sales to both domestic and overseas customers. Customer demand has weakened considerably since December and is now at its lowest levels since at the peak of the coronavirus crisis.
Delaying the restart of international travel will cost the UK economy almost £27 billion
The World Travel & Tourism Council (WTTC) has warned that nearly £27 billion will be lost from the UK economy if the government delays restarting international travel until May 17. According to the government’s roadmap, two households will be able to mix outdoors from March 29 and WTTC believes this should signal the restart of safe international travel. Resuming international travel by just seven weeks earlier, to coincide the Easter holiday break, could save struggling Travel & Tourism businesses up and down the country and provide a much-needed economic boost to the economy. WTTC, which represents the global Travel & Tourism private sector, fears delaying the revival of international travel for another seven weeks, will hasten the further slide into collapse of a sector which contributes £200 billion annually to the UK economy, and is responsible for almost four million jobs.
https://www.hospitalitynet.org/news/4103175.html
GM businesses secured £15 million in NPIF investment in last 9 months
In the nine months from April 2020 to January 2021, the Northern Powerhouse Investment Fund (NPIF) delivered a record £15 million investment in Greater Manchester businesses. The fund has now supported a total of 175 firms in the city-region with over £60 million invested through Equity Finance (£31 million) and Microfinance and Debt Finance (£30 million). NPIF investment has also help to attract a further £67 million into the region’s businesses from the private sector. Recent recipients of funding from the NPIF include Wythenshawe software firm FISSARA. The firm secured a £125,000 investment from the government’s Future Fund as part of £250,000 investment round led by the NPIF and Maven Equity Finance. Oldham-based Linco Automotive also received a £100,000 loan from the fund to recruit staff and secure larger premises.