Business News Round Up (22/01/2021)
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UK borrowing hits highest December level on record
UK government borrowing hit £34.1bn last month, the highest December figure on record, as the cost of pandemic support weighed on the economy. It was also the third-highest borrowing figure in any month since records began in 1993, the Office for National Statistics said. The figures underline Chancellor Rishi Sunak’s problems as he prepares his March Budget. Borrowing for this financial year has now reached £270.8bn. That is £212.7bn more than a year ago, the ONS said. The independent Office for Budget Responsibility (OBR) has estimated that borrowing could reach £393.5bn by the end of the financial year in March. The increase in borrowing has led to a steep increase in the national debt, which now stands at £2.13 trillion.
https://www.bbc.co.uk/news/business-55762674
Scottish business mental health crisis revealed in survey
Two fifths of business owners say they’re worried about their mental health, a survey of 1200 Scottish entrepreneurs has found. More than half of the respondents (55%) to the Federation of Small Businesses (FSB) poll said that they had concerns about the survival of their business, while slightly less than half (46%) were worried about keeping up-to-date with changing government regulations. About a third of business owners (30%) said that repaying debt weighed on their mind, while just under half (44%) are worried about their pay or the income of their family. FSB is urging those that work for themselves in Scotland to do what they can to look after their mental wellbeing during the coronavirus crisis. They also want to see the Scottish Government pilot a new support service specifically for small business owners and the self-employed to prevent a mental health crisis.
https://scottishbusinessnews.net/scottish-business-mental-health-crisis-revealed-in-survey/
Almost 10,000 hospitality firms closed in 2020
Almost 10,000 pubs and restaurants closed across the UK last year as the Covid lockdown ravaged the hospitality sector. Casual dining was the hardest hit sector and “many more” businesses are expected to close this year, according to the latest Market Recovery Monitor from CGA and AlixPartners. Despite the crisis, 3,955 businesses opened last year. With 9,930 closing permanently it left It a net decline of 5,975 sites which was three times as many as in 2019. In the casual dining sector total site numbers dropped by 9.7%, or 3.8 permanent closures for every opening. The community, food and high street pub segments saw numbers fall between 3.9% and 5.1%. The sports and social club sector, which has suffered from bans on events and socialising, recorded a decline of 6.2%.
https://dailybusinessgroup.co.uk/2021/01/almost-10000-hospitality-firms-closed-in-2020/
56% of North West businesses expected to invest in their eCommerce capabilities in 2021 with 88% confidence of growth
56% of North West businesses are expected to invest in their eCommerce capabilities over the next 12 months according to a recent survey by Digitl, the Manchester based web design and marketplace agency. 78% of all respondents had increased their use of eCommerce since the start of the COVID-19 crisis. Whilst 55% of retailers had used external marketplaces for the first time to drive sales with over 80% of them choosing Amazon – mainly because of its profile and reach. 75% confirmed that the decision to use an external marketplace had played a considerable factor in helping them survive 2020. 48% of all service-based businesses had also ramped up their ability to provide online transactions with law and accountancy firms leading the way. In terms of business confidence, 88% of firms believed that they would see growth in 2021 with most citing average upturns of around 15-25%. However, there is still caution with an effective vaccine rollout and the easing of lockdown restrictions by early Spring being key factors.