Business News Round Up (08/07/2021)
UK Covid-19 business loans total £80 billion
Pandemic hit businesses in the UK have received government-guaranteed loans worth £79.3bn, according to new data published by the HM Treasury. With the end of government restrictions in sight, as well as the end of support measures such as the furlough scheme, businesses and lenders alike are looking to the post covid economy and eventual recovery. While businesses continue to benefit from the Recovery Loan Scheme, emergency support that began in the wake of the pandemic in April 20200 and ended in May 2021. In total 1,670,939 loans were made through banks, neo banks and alternative lenders via the Bounce Back Loans Scheme, Coronavirus Business Interruption Loans Scheme, and the Coronavirus Large Business Interruption Loans Scheme. More than 1.5 million Bounce Back Loans worth £47bn were provided during the pandemic, with £26bn also provided as Coronavirus Business Interruption Loans (CBILS) as well as over £5bn worth of CLBILS. A further £1.12bn of funding has been provided in the form of convertible loans to 1,140 high growth firms through the Future Fund.
https://www.altfi.com/article/8086_uk-covid-19-business-loans-total-80-billion
Scotland’s trade figures fall fast during pandemic
Scotland’s exports fell by 21.7% to £25.6bn during the year to March 2021, while imports dropped 14% to £19.7bn, according to the latest HM Revenue & Customs figures. The nation’s largest export trading partner by value was The Netherlands, at £4.5bn, while the largest import partner was China, at £3.2bn. Mineral fuels, lubricants and related materials were Scotland’s top exported commodities – although this still fell by 45.7% to £7.1bn. All four UK countries had a decrease in the value of exports and imports compared with the previous 12 months. However, Trade Minister Ivan McKee was quick to point out that the Scottish figures compare favourably with a reduction across the rest of the UK.
https://www.insider.co.uk/news/scotlands-trade-figures-fall-fast-24480282
Northern PE deals pass £10bn in first half of 2021
Dealmakers in the North of England have remained active during the first half of 2021, with private equity houses completing a total of 30 deals worth £10.4bn. This is according to data from CMBOR, the Centre for Private Equity and MBO Research, which was re-established within Nottingham University Business School last month. Funded by Equistone Partners Europe as exclusive sponsor, the research reveals the highest private equity deal volume seen from the regions for more than five years, with the value almost 10 times the £1.9bn completed during the same period last year. The North also saw the completion of the largest transaction in the UK this year to date – the £6.8bn sale of Leeds-based supermarket chain ASDA by Walmart to a consortium led by TDR Capital and the Blackburn-based Issa Brothers, owners of the EG Group. The North West was the most active market for deals in the North, with 15 completed in the first six months of the year. Behind this, Yorkshire saw 11 transactions, followed by four in the North East. On a national scale, London remained the most active deals market with 32, followed by the South East (17), North West, East of England (14) and Yorkshire.
Positive outlook for Scottish labour market after further recovery in June
Scottish labour market conditions recovered further in June, according to new data out today from Royal Bank of Scotland (RBS) – which expects the rebound to continue. The lender found that hiring activity gained pace again amid reports that companies were stepping up their hiring efforts in line with easing lockdown restrictions and rising economic activity. The latest upturn in permanent placements slowed “noticeably” from May’s all-time high but was still quick overall. The permanent placements index reached 63.8 in the month, down from 71.2 in May, while temp billings growth also remained historically elevated, with the latter index settling at 66.2. Meanwhile, vacancies for both permanent and short-term staff grew at the steepest rates in the survey’s history, but recruiters signalled steeper falls in staff supply.