Business News Round Up (02/06/2020)
Economic shock for UK but rapid recovery likely
The economic impact of Covid-19 will shrink the UK economy, with a strong change of rapid recovery, according to new research. The UK economy could shrink by 8.3% in 2020, the largest decline since 1921, according to the report by Oxford Economics. The Institute of Chartered Accountants in England and Wales (ICAEW) research partner predicts that the deficit is likely to reach £290 billion this year, equal to 14% of GDP in the second quarter, exceeding the previous record drop of 10.2% set in 2009-10. However, a strong change of rapid recovery has been forecast given that GDP fells as a direct result of a planned, partial economic shutdown.
£4000 wiped off average UK home value during lockdown, says study
More than £4000 was wiped off the average house price in May, the biggest monthly drop in property values in 11 years, according to new figures from Nationwide Building Society. Across the UK property values fell 1.7% month-on-month in May, marking the biggest month-on-month fall since February 2009 and pushed the average house price in May down to £218,902. In April, the average UK house price was £4,013 higher, at £222,915.
https://www.insider.co.uk/news/4000-wiped-average-uk-home-22123927
STUC: £13bn clean stimulus package could create 150,000 jobs in Scotland
The Scottish Government could create 150,000 jobs and re-absorb workers who were made redundant as a result of Covid-19 if they invested £13 billion into clean infrastructure projects, according to the Scottish Trade Unions Congress (STUC). A study by research company Transition Economics revealed that upwards of 50,000 jobs could be created in building retrofit, with another 40,000 in transport and 20,000 in manufacturing and offshore wind infrastructure. The research is released following the announcement of the paring back of the Job Retention Scheme, threatening a massive increase in redundancies across the economy, ongoing concerns about the future of the North Sea, and while low-carbon supply chain decisions such as the future of the BiFab renewables facility hang in the balance.
Chamber launches GM Business Community
Greater Manchester Chamber of Commerce is offering all businesses not currently members free access to a new initiative launched in response to the coronavirus outbreak. The GM Business Community powered by the GM Chamber will allow non-members free access to the network and support of the largest Chamber of Commerce in the UK. The free membership will allow businesses access to help and support from the Chambers and its members to navigate the uncertainty Covid-19 has caused.
https://businessmanchester.co.uk/2020/06/01/chamber-launches-gm-business-community/