Business News Round Up (21/07/2020)
UK quarterly borrowing hits record high
The UK Government borrowed £127.9 billion between April and June to combat the coronavirus pandemic, more than double the amount it borrowed the previous year (£55.4 billion). The Office for National Statistics (ONS) said public borrowing in the first quarter of the 2020-2021 financial year increased to £127.9 billion, the highest quarterly sum since record began in 1993. The Office for National Statistics (ONS) said debt at the end of June 2020 as a percentage of economic output was 99.6%, the highest debt to GDP ratio since the financial year ending March 1961. But the ONS also warned that its borrowing estimates are currently “subject to greater than usual uncertainty”.
https://www.bbc.co.uk/news/business-53482895
Fraser of Allander Institute sees contraction in Scotland
The Scottish economy is on course to have contracted by more than 19% during the height of the lockdown measures. The Fraser of Allander Institute suggested that activity between April and June would be shown to have decreased drastically compared to what it was before the coronavirus pandemic. The Scottish government said that GDP has grown by 1.5% in May compared with April, however output in May was 22.1% lower than it had been in February before the lockdown was imposed.
Greater Manchester showing slow signs of recovery says Chamber survey
The results of the first fortnightly GM Recovery Tracker survey conducted by Greater Manchester Chamber of Commerce show a slight improvement in customer demand as the relaxation of lockdown measures continues. After a historic collapse in demand during lockdown, the survey reveals an improvement in sales but 43% of the respondents fear their revenues may dip further in the coming weeks. Order books are also still a concern for many businesses with only 21% reporting an increase in advance orders as against the half that reported a decrease. With customer demand showing improvements, cash positions have improved in the last few weeks. Businesses report that payments from HMRC for staff furloughed under the Coronavirus Job Retention Scheme were all received in time, which has helped cashflow positions.
https://aboutmanchester.co.uk/greater-manchester-showing-slow-signs-of-recovery-says-chamber-survey/
£90m investment to drive economic recovery in Falkirk
The Scottish and UK governments have announced £90 million of funding as part of a new growth deal which aims to drive inclusive and sustainable economic growth across the region. It will help support the chemical manufacturing industry at Grangemouth, innovation in low carbon technology, investment in infrastructure, transportation, innovation, energy transition and skills. The Falkirk Growth Deal is the 11th such deal in Scotland. Regional growth deals are agreements between the Scottish Government, the UK Government and local government designed to bring about long-term strategic approaches to improving regional economies.
https://www.scottishconstructionnow.com/article/90m-investment-to-drive-economic-recovery-in-falkirk