Business News Round Up (14/05/2020)
UK economy shrinks at fastest pace since 2008 financial crash
The UK economy contracted 2% in the first quarter of the year – the fastest pace since the 2008 financial crash – revealing the impact of the coronavirus lockdown on economic activity. Data from the Office for National Statistics showed the UK economy contracted by 2.0% in Q1, its biggest quarterly drop since Q4 2008. The decline largely reflects a 5.8% fall in output in March, driven by monthly declines across the UK production, construction and services industries. Output from the UK services industry slumped by 1.9% in the first quarter, driven by a 6.2% monthly decline in March as public health restrictions and social distancing measures led to a widespread disruption of economic activity. The vast majority of service industries suffered declines, with education, wholesale and retail trade, auto repairs, food and beverage, accommodation and travel agencies among the worst affected sectors.
One in three small Scottish businesses fear they are closed for good
A new survey has revealed one third of small business owners in Scotland fear they will not reopen after the lockdown has ended. The Federation of Small Businesses found that 53% of Scottish businesses have been forced to close, compared to 41% across the UK as a whole. The survey of 5,471 small business owners across the UK, 758 from Scotland, also revealed one fifth of businesses have failed or are struggling to make rent or mortgage repayments due to the economic impact of lockdown. More than 70% of businesses have furloughed staff to aid their survival, with 46% saying the ability to bring back staff gradually would keep their business viable.
https://www.insider.co.uk/news/one-three-small-scottish-businesses-22014993
UK – Japan trade talks to open, but timing ‘challenging’
The UK has today published its negotiating objectives for the deal and trade talks are set to begin shortly. Based on the existing EU-Japan free trade agreement, a bespoke UK-Japan agreement will aim to secure additional benefits for British businesses trading with Japan. The UK has today published its negotiating objectives for the deal and trade talks are set to begin shortly. Based on the existing EU-Japan free trade agreement, a bespoke UK-Japan agreement will aim to secure additional benefits for British businesses trading with Japan.
Praetura Ventures launches first evergreen fund
Praetura Ventures, the Manchester-based investor that backs quality businesses in high-value sectors, has launched the Praetura EIS Growth Fund as it continues to see increased demand for capital and support from high-growth businesses. As an ‘evergreen’ fund, the Praetura EIS Growth Fund is looking to raise up to £30 million per annum. It will soft close twice a year and the funds raised will be deployed to support the growth ambitions of businesses in the North and across the UK. This will include early-stage businesses looking for smaller, seed-stage investments as well as capital and support for more developed businesses that are looking to scale.
https://businessmanchester.co.uk/2020/05/13/praetura-ventures-launches-first-evergreen-fund/