Business News Round Up (15/05/2020)
Economic impact could be hardest in northern Scotland
The North and North East will be among the hardest hit by the coronavirus pandemic in the UK, experts have warned. MSPs were told to prepare for a “big regional impact” in the Highlands and islands due to the shutdown of the vital tourism sector, and in the Aberdeen area as a result of the fresh crisis facing the North Sea oil and gas industry. The Scottish Fiscal Commission warned in a report that the impact on these two sectors could lead to specific economic shock that is more severe than the rest of the UK. The report also highlighted the importance of these sectors to the overall Scottish economy, meaning that Scotland could face a longer recovery than the rest of the UK.
£244m to improve roads and boost connections across the North West
The Government has announced it is investing £244 million in the North West region to improve roads. Drivers, cyclists, and pedestrians in the North West will benefit from the investment to make journeys quicker, smoother, and safer. It will also see smaller improvements completed to upgrade local networks, such as enhancing road safety at key locations, the installation of priority bus lanes and the creation of projects to help lock-in improvements in air quality experienced during lockdown.
Pubs and restaurants face insolvency as the Covid-19 pandemic hits – industry forum
A remote hospitality industry forum has warned many pubs and restaurants will face insolvency as the high street suffers major hit from the coronavirus pandemic. The forum, hosted by EP Business in Hospitality and Catering Scotland, also warned that workforces will be downsized but hope that many businesses can start to re-employ from late 2021. Hospitality businesses are now coming together to share knowledge and work more collaboratively in the belief that they can achieve more when businesses work together.
https://www.insider.co.uk/news/pubs-restaurants-face-insolvency-covid-22027149
University of Edinburgh under ‘serious threat’ from pandemic
The University of Edinburgh has reported it is under ‘serious threat’ from the coronavirus. Professor Peter Mathieson revealed that the university’s annual profits are set to fall by £150 million as financial pressure increased as a result of the coronavirus pandemic. Edinburgh, which has an annual income of £1 billion, has running costs, including wages, of around £90 million a month. The single biggest challenge for the university is the likelihood of a large drop in the number of students from outside Europe, some of whom pay tuition fees of around £30,000 a year. The university still does not know how big the drop will be but there have been warnings it could range from a 25% fall to a complete collapse.
https://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-52666042