CURRENT DEVELOPMENTS IN THE UK – THE ECONOMIC IMPACT OF THE COVID-19 PANDEMIC
As the world goes all out with preventative safety measures in the hope that a cure or vaccine for the novel coronavirus is found soon, we can no longer deny the obvious effects of the quarantine on the economy. Business owners around the world have expressed their deep concerns about the uncertainty caused by the pandemic on their business models. A lot of these business owners are wondering what they can do in the current situation to salvage their business.
In the bid to ease the pressure placed on these businesses by the pandemic, the UK government has initiated several economic support schemes. However, many business owners are still concerned about the efficacy of these support schemes to keep their businesses afloat.
In this post, we will take a quick look at the current economic effect of the Covid-19 pandemic in the UK.
EASING ECONOMIC PRESSURE WITH THE AID OF MODULAR TECHNOLOGY
One of the many challenges businesses around the world are facing amidst the Covid-19 pandemic is how to keep basic business operations going. The spread of the coronavirus has prompted governments around the world to impose quarantine rules and restrict people’s movement. While these measures are currently the best way to ensure the safety of lives, it is harming businesses and the world’s economy.
With several countries easing their quarantine rules, businesses in the UK are now looking for ways to continue their operations remotely and within the confines of the instructions given by the government. Companies are beginning to explore the possibility of employing the use of temporary modular facilities as a means of aiding basic business operations without putting those employees who live far from their offices at risk of exposure. Visit Smart-space to learn more about modular technologies.
Without basic business operations, businesses will not be able to survive despite the tax relief and state funding measures introduced by the UK government.
STATE FUNDING MEASURES
About 330 billion pounds was made available by the UK government to support businesses amid the Covid-19 outbreak on the 17th of March 2020. Several liquidity initiatives like the CBILS (Coronavirus Business Interruption Loan Scheme) amid others were introduced to help facilitate the business support scheme. The business support scheme aims to ease the pressure on businesses by awarding up to 25,000 pounds in cash grants to businesses. Also, several financial aid schemes for business owners have been introduced as a means of keeping businesses afloat until the pandemic is over.
EMPLOYMENT SUPPORT SCHEME
A 4-month Covid-19 job retention scheme was also introduced by the UK government on the 1st of March 2020. The objective of this scheme is to secure jobs for the workforce of employers severely affected by the Covid-19 outbreak. This scheme permits employers to apply for about 80 percent of the usual wage costs of their workers. However, it must be concerning that furloughed workers have still been laid off as a result of the Covid-19 pandemic.
The UK government has also introduced several business support measures in a bid to secure the nation’s economy until the Covid-19 pandemic is over.
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