Business News Round Up (27/04/2020)
Economy will not return to 2019 size until 2023 – report
The UK economy is predicted to suffer a deep, short recession due to the impact of Covid-19, with the economy not expected to return to its 2019 levels of output until 2021, according to a new report. The EY ITEM Club Spring Forecast 2020 predicted the economy will contract by 6.8% in 2020, before returning to positive growth of 4.5% in 2021, on the basis that lockdown restrictions are eased in May and June. The report warns that figures could be worse if the UK is hit by a new wave of coronavirus wave after lockdown is lifted, if consumers remain cautious for longer or if a large number of jobs are lost and companies go bust.
https://www.insidermedia.com/news/south-west/economy-will-not-return-to-2019-size-until-2023-report
Scottish tech sector faces serious threat due to pandemic, start-up leaders warn
Start-up leaders in Scotland are calling for more support from the government for the tech industry as companies are under threat due to the coronavirus pandemic. A recent survey of more than 100 technology start-up founders and senior executives in Scotland found that more than nine in 10 (95%) said the pandemic had already had a negative impact on their businesses, with 53% experiencing a significant or severe impact. The Turing Fest survey also found 38% have furloughed staff, 21% are considering redundancies, 50% have frozen or are scaling back hiring and 17% are unclear about what support is available. Tech entrepreneurs fear the crisis could stifle innovation and, put promising companies out of business in an industry which employs almost 100,000 people and contributes £6.6 billion to the economy.
Sciontec Liverpool signs deal with Bruntwood Scitech
Bruntwood SciTech, a Manchester based science and tech developer, has signed a contract with Sciontec Liverpool to become a 25% shareholder in the company, which operates Liverpool Science Park. Bruntwood SciTech, a property provider focussed on the science and technology sector, has a portfolio spanning Manchester, Leeds, Cheshire and Birmingham which includes more than 500 science and technology businesses. Liverpool City Council, Liverpool John Moores University and the University of Liverpool announced that Bruntwood SciTech – a 50/50 joint venture between Bruntwood and Legal & General – had been shortlisted back in July 2019 and that this £12 million deal would be a catalyst for growth within the science and tech sector in the Liverpool City Region.
https://www.businesscloud.co.uk/news/sciontec-liverpool-signs-deal-with-bruntwood-scitech
Fintech firms devise cash flow solutions for SMEs
New research by payments service bePayd has revealed money needs to flow faster to cover the £212.8 billion in unpaid invoices due to SMEs. The country’s smallest businesses (under 50 employees) generate £1.53 trillion in annual revenue for the UK economy yet wait on average 50.8 days to be paid. According to bePayd analysis, this means that, at any one-time, small companies are waiting for up to £212.8 billion in cash for work they have already done. According to bePayd, a ‘silent majority’ of UK SMEs are not accessing government support, with unpaid invoices the fastest and most effective way to unlock cash and kick-start the economy
https://dailybusinessgroup.co.uk/2020/04/fintech-firms-devise-cash-flow-solutions-for-smes/