Business News Round Up (27/07/2020)
UK’s post-Covid economic recovery could take 18 months longer than expected
A revival of the UK economy will take 18 months longer than earlier forecasts, according to a new report from EY. The EY Item Club Summer Forecast that GDP is now expected to contract by 11.5% for 2020, compared to the previous prediction of an 8.0% contraction, with hopes of a V-shaped recovery diminishing. EY now expects the second quarter GDP contraction to come in at a record 20% – a sizeable downgrade from the 15% contraction predicted last month. Positively, growth prospects for 2021 have been raised slightly, with the economy now forecast to grow 6.5% over the year, up from the 5.6% predicted in June’s forecast, and up from 4.5% in April’s forecast.
One in four businesses still predict gloom despite growth in confidence
Confidence in Scotland’s small business community is increasing following a ‘complete collapse’ in optimism earlier this year, according to new research. The Federation of Small Businesses’ (FSB) Scottish small business confidence index jumped from -154.8 points in Q1, the lowest ever figure recorded, to -10.1 points in Q2. Over the same period, the UK-wide index increased by 138.4 points to -5.0 points. However, expectations of future performance were polarised, with a quarter (25%) of the 195 Scottish business owners surveyed in June expecting performance to be “much worse” over the coming quarter, while just over one in 10 (11%) forecast the opposite.
https://www.insider.co.uk/news/one-four-small-businesses-still-22417876
Funding deal struck for £185m Manchester scheme
A £185 million scheme in Manchester city centre will start on site next month following the agreement of major funding and contractor deals. A major institutional investor will forward fund the 450,000 sq ft residential phase of New Victoria for an undisclosed sum. VINCI Construction UK has also signed to build the scheme, which will be completed within current government guidelines over a three-year period, on behalf of project partners. Earmarked for a site adjacent to Manchester Victoria train station and being brought forward by Muse Developments in partnership with Network Rail and Manchester City Council, New Victoria will comprise 520 homes over two 20 and 25-storey buildings.
https://www.insidermedia.com/news/north-west/funding-deal-struck-for-185m-manchester-scheme
Live events sector to get £10 million support as venues remain closed
Scotland’s events sector is to receiving funding support of £10 million to deal with the ‘devastating impact’ of Covid-19 on the sector, according to the Scottish Government. The funding will provide direct support to organisers of cultural, community and sporting events. Supply chain firms facing hardship will also receive support to help keep them in business while restrictions on events are still in place. Earlier this month, the UK Government announced a package for the arts sector which would see £97 million given to Scotland through the Barnett formula.
https://www.insider.co.uk/news/live-events-sector-10-million-22417855