UK economy could take four years to recover, says EY July 27, 2020 The UK economy will take four years to return to its 2019 size as consumer caution and high levels of unemployment weigh on growth, economic forecaster EY Item Club has predicted. EY Item Club said it expects the UK economy to shrink by an enormous 11.5 per cent this year and then grow by just [...]
Want a recovery that works for everyone? Fix the injustices in the tax system July 27, 2020 The lockdown shone a spotlight onto a two-speed, two-nation Britain, where better-paid white-collar professionals worked from home, while less well-off key workers had to keep travelling to work, often on crowded public transport, to do riskier jobs. Even worse, it turned out that those less well-off key workers were paying much higher tax rates than [...]
US economy: Demand hit by new coronavirus lockdowns July 24, 2020 The US’s private sector stabilised in June but demand faltered as states re-imposed lockdowns in response to rising coronavirus cases, survey data has shown. An early estimate of the IHS Markit purchasing managers’ index – a gauge of the health of the economy – hit a six-month high of 50 as output improved after the [...]
Don’t believe the Scottish independence hype — I’d bet on Johnson’s tortoise to beat Sturgeon’s hare July 24, 2020 For his first significant political event outside the Westminster bubble, timed for his one-year anniversary of becoming Prime Minister, Boris Johnson chose to go to Scotland. The significance of that choice cannot be overestimated. Politics is as unpredictable as ever, and despite chancellor Rishi Sunak hosing Scotland with the billions confected by the Bank of [...]
Three charts suggest a V-shaped recovery, but economists are sceptical July 24, 2020 British businesses reported the best growth in five years in July and shoppers spent their money at close to pre-coronavirus rates in June, data showed today in a positive sign for the UK economy. It was a stark contrast to two weeks ago, when figures showed that the economy undershot expectations in May with just [...]
Private sector grows at fastest pace in five years as UK economy reopens July 24, 2020 Britain’s all-important services sector grew at its fastest pace in five years in July as much of the UK economy reopened from the coronavirus lockdown, a survey has shown. Private sector output as a whole also grew at its fastest clip since 2015 as manufacturing production picked up speed, according to the early survey reading. [...]
UK bosses more positive on hiring but worried about economy July 24, 2020 Employers became more positive in July about making hiring and investment decisions for the first time since February, although more companies laid off workers as coronavirus bit the UK economy. Bosses’ confidence in bringing in new workers and spending to grow rose to a net level of four in July, according to the Recruitment & [...]
UK retail sales surge close to pre-lockdown levels in June recovery July 24, 2020 UK retail sales almost recovered in June from their staggering drops during Britain’s coronavirus lockdowns, official data showed today. The volume of retail sales jumped 13.9 per cent from May to June as shops and non-essential stores opened their doors to customers once again following a lockdown that started on 23 March. Non-food store sales [...]
We can’t tax our way out of the Covid-19 crisis — instead, the chancellor must drive growth July 24, 2020 There has never been a time to my knowledge when, in the run up to a Budget or other fiscal event, the Treasury has not highlighted the pressures on public finances which made the option for significant (or, indeed, any) net tax cuts unwise. Typically, projected shortfalls in the state’s annual budgets have been in [...]
How badly will the UK unemployment rate spike when furlough ends? July 22, 2020 Chancellor Rishi Sunak’s furlough scheme has so far saved the UK unemployment rate from sharp increases during the coronavirus lockdown, but it is drawing to an end. Consequently job losses are set to spike after furlough concludes in October, according to economists. Currently the government is paying 80 per cent of over 9m British workers’ [...]
