Business News Round Up (26/11/2020)
Find out more about Where Now Consulting. We update our business news daily.
Scottish economy grows again, but at a low ebb
SCOTLAND’S economy has grown for the fifth month in a row, but the recovery from coronavirus is slowing down, according to official figures. The latest monthly estimates found onshore GDP increased by 1.6% in September. However the economy remains 7.6% smaller than when Covid first struck in February. The 1.6% increase in September was the smallest since the economy slumped during the first lockdown and GDP fell by 5.6% and 19.3% in March and April respectively. Since then it has grown by 2.4% in May, 6.3% in June, 6.9% in July, and 2.6% in August. September saw growth in all of the main sectors of the economy, but again this was slower than in the summer, pointing to economic struggle this winter. Output in the dominant services sector grew 1.6% on August, production sector output increased by 1.4%, and construction sector output increased by 2.7%.
https://www.heraldscotland.com/news/18896806.scottish-economy-grows-low-ebb/
Hospitality jobs can stifle unemployment and drive recovery – UKHospitality
Reacting to today’s Comprehensive Spending Review, UKHospitality has reiterated that hospitality jobs can catalyse the UK’s economic recovery, and avoid predicted unemployment growth, but only if it is supported to navigate a harsh winter. Commenting on the announcement, UKHospitality Chief Executive Kate Nicholls said: “Hospitality jobs are at the core of the grave unemployment forecasts the Chancellor announced today, yet the sector has shown repeatedly, most recently in August, how those jobs can help deliver economic growth for the economy. But it can only do so if it survives the winter, and that means getting the necessary support now. The increase to the National Minimum Wage will be a great benefit to many workers in our sector only if the businesses that employ them are still around.
New plan outlined to reinvigorate city’s economic recovery
A plan setting out how Manchester will emerge reinvigorated from the economic shock of the COVID-19 pandemic – and other challenges such as the uncertainties of Brexit – has been published. Powering Recovery: Manchester’s Recovery and Investment Plan, which has been developed by Manchester City Council with the support of city business leaders, is a statement of confidence in the future of the city’s economy. It shows a resilient city with a diverse economy and strengths in key growth sectors as well as strong existing partnerships and a track record of delivery. Manchester has both the foundations and building blocks to re-establish its previous momentum as the UK’s premier growth city. The economic interruption of the pandemic has not diminished the city’s aspirations for a more inclusive and greener economy. It has two main elements – early actions to cushion the impact of the COVID-19 pandemic downturn on Manchester people and businesses, and ready-made long-term investment programmes in key sectors to help power the recovery by creating new jobs and acting as a catalyst to further investment.
Scotland has already had £8bn more to spend than expected at the start of the year
The Scottish Budget will receive more than £8bn in additional spending in 2020-2021 than it was expected to in February. The substantial increase amounts to almost £1,500 more per head than was planned and was calculated before the latest figures announced in today’s Spending Review. The University of Strathclyde institute went on to say: “The pace at which new funding has been allocated and new policies have been announced means that keeping track of how the additional funding has been allocated in Scotland is not always easy. The paper written by the Institute’s David Eiser said that more than £2bn of Barnett consequentials – the Scottish share of the UK budget allocated by population – remain to be allocated although some of that has already been committed by the Scottish Government. The Fraser of Allander’s analysis shows that more than £2.4bn additional funding has been allocated to health, business has received more than £1.5bn of grant support plus £900m of Business Rate reliefs.
https://www.insider.co.uk/news/scotland-8bn-more-spend-expected-23064041