Business News Round Up (09/10/2020)
UK economy grew 2.1% in August, lower than expected
The UK economy grew 2.1% in August according to data from the Office for National Statistics (ONS). Much of what growth recorded in August was down to a one-off government restaurant subsidy programme, official data showed today. UK gross domestic product rose by 2.1% from July, its slowest month-on-month increase since the economy began its recovery in May after a record slump. It was not even half the median forecast of 4.6% in a Reuters poll of economists. It was the fourth consecutive month of growth, after the economy took a serious hit during the depths of the Covid-19 pandemic. But it is less than half of what experts had expected, and a major slowdown since July despite the Government’s Eat out scheme which ran during the month.
https://www.rte.ie/news/business/2020/1009/1170404-uk-gd-figures/
Confidence and sales drop despite return to trading – Scottish Chambers of Commerce report
The Scottish economy saw confidence and sales drop across several sectors despite returning to trading as coronavirus restrictions were eased, according to a new report. The Scottish Chambers of Commerce Quarterly Economic Indicator suggests retail and tourism were hit particularly hard ahead of a “bleak winter”. More than half of retail and wholesale firms reported a fall in total and domestic sales in the third quarter of 2020, resulting in net balances of minus 28% and 27% respectively, with confidence at a net balance of minus 15%. Nearly half of tourism firms (46%) reported a fall in sales compared with the second quarter while 70% reported a fall in business confidence. Around a third of construction and manufacturing companies, four in 10 retailers and more than half of tourism firms are also expecting further sales drops in the upcoming quarter.
https://www.insider.co.uk/news/confidence-sales-drop-despite-return-22817250
4,000 SMEs to benefit from £7m to bridge workforce skills gaps
The Growth Company has been awarded a £7 million contract to help 4,000 SMEs across Greater Manchester re-skill their workforces, supporting the city region’s long-term economic recovery in response to Covid-19. Funded by the European Social Fund and commissioned by the Greater Manchester Combined Authority (GMCA), the Skills for Growth – SME Skills Support package will be delivered in partnership with the Greater Manchester Chamber of Commerce (GMCC). The scheme will support businesses that need to better understand and develop their staff skill sets and business models to ensure they are future-proofed and in a strong position to grow.
Training for people facing redundancy and unemployment as new fund launched
People who have lost their jobs or who are at risk of redundancy as a result of COVID-19 can access support to retrain through a new fund launched by the Scottish Government. The £25 million National Transition Training Fund – a flagship Programme for Government commitment – will help up to 10,000 people aged 25 and over to develop the skills required to move into sectors with the greatest potential for future growth and job opportunities. The fund will help to boost the supply of skills in areas such as sustainable green jobs and raise the profile of training opportunities linked to Scotland’s transition to a net zero economy.