Business News Round Up (23/04/2020)
UK economy shrinks most on record amid Coronavirus Lockdown
The UK economy contracted at the fastest pace in April as the coronavirus lockdown brough commerce to a standstill, according to new figures. The IHS Markit/CIPS Flash UK Composite Purchasing Managers’ Index (PMI), which measures activity in both the services and manufacturing sectors, fell to a new record low of 12.9 from 36.0 in March. The services business activity index dropped to 12.3 in April from 34.5 the month before and against consensus expectations of 29.0, while the manufacturing index declined to 32.9 from 47.8, versus consensus estimates of 42.0.
Seven out of 10 firms have furloughed staff, finds British Chambers of Commerce
The latest Coronavirus Business Impact Tracker from the British Chambers of Commerce reveals seven in ten businesses have furloughed their workforce and are waiting for government funds from the Coronavirus Job Retention Scheme. The survey, which serves as a barometer of the pandemic’s impact on business and the effectiveness of government measures, shows 71% of survey respondents have furloughed staff, a 5% increase from the previous week. The survey also shows 30% said they have furloughed 75-100% of their workforce but 28% have furloughed no staff.
https://www.insider.co.uk/news/seven-out-10-firms-furloughed-21904750
Major survey of Scottish business shows widespread uptake of Covid-19 support
Nearly 90% of Scottish businesses planned to apply for one of the UK Governments five key support schemes, according to a Scottish Business Monitor. The Addleshaw Goddard Scottish Business Monitor, produced in a partnership between Strathclyde University’s Fraser of Allander Institute (FAI) and international law firm Addleshaw Goddard, revealed the response from the government to provide significant aid to the business community and its employees has “in the main” been deemed to be effective, although concern was expressed about the delivery of the various schemes.
Funding boost for North West Energy & Hydrogen Cluster
The North West Energy & Hydrogen cluster has been awarded government funding designed to help the region to become the UK’s first net zero carbon industrial cluster by 2040. The £120,000 project, which is jointly funded by UK Research & Innovation (UKRI) under the Industrial Decarbonisation Challenge Fund (IDCF), will be used to set out a clear vision for how the North West will decarbonise industry, protect jobs and help the UK meet its legally binding net zero targets. Led by the North West Business Leadership Team (NWBLT), the cluster brings together political and industry partners in a move which could yield 33,000 jobs, more than £4 billion of investment and save 10 million tonnes of carbon per year.
https://www.insidermedia.com/news/north-west/funding-boost-for-north-west-energy-hydrogen-cluster