Tag: Economy

Green Recovery Summit

Scotland’s environment experts to inform economic recovery after coronavirus with online Green Recovery Summit

Environmental protection must be prioritised in economic recovery plans, Scotland’s top sustainability experts are to tell decision-makers next week. 

Around 50 of the nation’s thought-leaders on the environment and the green economy are to come together on Monday (8 June) to outline their vision for a sustainable recovery from the coronavirus. 

An online summit hosted by the Royal Scottish Geographical Society (RSGS) and sponsored by Zero Waste Scotland will bring together industry experts, transport chiefs, academics and policy advisors to shape the environmental considerations that must be at the core of Scotland’s strategy for economic recovery post-pandemic.

Delegates at the invite-only Green Recovery Summit are expected to discuss a number of considerations, from financing the green recovery to sustainable procurement, then collectively decide which options to prioritise before the half-day event concludes.

A report from the summit is expected to help shape recommendations to the Scottish Government ahead of a recovery plan for Scotland. 

The Green Recovery Summit builds on four earlier events designed to generate solutions to the climate emergency – including most recently the role of the construction industry in driving the circular economy, in which products and materials are made to last for as long as possible. 

Iain Gulland, Chief Executive of Zero Waste Scotland, said: “We are all aware that swift, decisive action is needed to avoid deepening the climate emergency we find ourselves in.

“Scotland has long been recognised as a leading nation on the circular economy, and as we emerge from the coronavirus pandemic we have an unprecedented opportunity to reaffirm our commitment to a more sustainable future. 

“The circular economy has huge potential for Scotland with economic opportunities worth up to £3billion estimated before coronavirus impacted the economy, as well as significant benefits for our environment.

“As we set out key next steps that will shape how we live and work for years to come, it’s vital that we ensure progress towards a greener, more resilient economy is right at the heart of our plans.” 

Mike Robinson, Chief Executive of the Royal Scottish Geographical Society (RSGS), said: “The coronavirus pandemic has transformed our societies both nationally and globally, and we have borrowed a huge amount of money to get us through this crisis.

“It is vital we use this coming period to build and shape our continuing emergence from this crisis in a way that ensures we best protect ourselves from any future ones.

“Climate change has to be the most profound of these, and it would be a huge missed opportunity not to use this forced change as a springboard for a transformation to a more sustainable society.

“The upcoming Green Recovery Summit is a perfect platform to propose positive changes and present solutions.”

 

Scottish Firms’ confidence rises but remains near record low

Bank of Scotland’s Business Barometer for May 2020 shows: 

  • Overall confidence for firms in Scotland rose 17 points in the past month to -33%
  • Firms’ confidence in their own business prospects was -26%, compared with -29% in April
  • Growing number of firms experienced an increase in demand for goods and services

Business confidence in Scotland rose 17 points during May to -33%, remaining near record lows, according to the latest Business Barometer from Bank of Scotland Commercial Banking.

Companies in Scotland reported higher confidence in their own business prospects than in April at -26%. When taken alongside their views of the economy overall, this gives a headline confidence reading of -33%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

In an illustration of the impact COVID-19 is having on Scotland’s business, the majority of firms continued to see demand negatively affected during May, but with the picture improving slightly since April.

65% experienced a fall in demand for their products and services, down seven points on the month before. Meanwhile, 12% experienced an increase in demand, up on 5% in April.

The number of Scottish firms operating at less than 50% capacity increased 18 points to 43%. A fifth of firms (20%) weren’t operating at all, down from 32% in April.

Of the 75% of businesses reporting disruption to their supply chain during May, 19% expected the situation to improve within three months, while 14% expected it would take more than 12 months to return to normal levels.

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Scottish firms have been hit hard by this crisis, but they’re showing resilience in the face of great challenge.

“It’s encouraging to see that some businesses are beginning to reopen as demand creeps back. We’re standing shoulder-to-shoulder with companies from all sectors to help them overcome the challenges presented during this difficult time.”

National overview

Across the UK, business confidence held steady month-on-month, dipping just one point to   -33%. The North East and London both saw confidence rise month-on-month, scoring the joint-highest confidence reading at -20%. The South West recorded lowest confidence at         -51%, compared to -35% the month prior.

From a regional perspective, despite all being in negative sentiment, six of the 12 regions reported a higher confidence in May. The North East was the least negative region at -20%. The South West was the most negative region at -51% followed by the South East at -45%.

In May, the construction sector saw the sharpest decline, falling 24 percentage points to -44%. However, all the three other major sectors saw a modest increase. The retail sector increased eight points to -25%, while manufacturing rose to -27% and services saw a small increase of four points to -18%.

Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said: “While May continued to show the unprecedented impact of the shutdown for businesses across the UK, it is important to see that now half of all regions are climbing back from the lowest levels seen last month.

“As Britain sees further easing of measures in the coming weeks, with more businesses re-opening, it is hoped that this will further improve businesses’ confidence. Government schemes and finance options continue to be made readily available to businesses so that they can be best placed and prepared to open once again in the months ahead.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “Despite the results partly capturing the period since the Government’s announcement of an initial easing of restrictions, trading conditions remain difficult for most firms.

“Nevertheless, a further relaxation of constraints will enable more businesses to resume their activities.”

‘A Better Recovery’: TUC plan to get Britain back on road to a healthy economy

The TUC has set out how the UK can recover from the coronavirus economic crisis, stop the despair of mass unemployment and set working families on a path to prosperity.   

Alongside the report, the TUC publishes analysis showing that the fastest recoveries from economic crises in UK history were based on investment for growth, not cuts to services, deregulation and tax breaks for millionaires and bosses.

75 years on from VE Day, the UK should emulate the post-war recovery  

TUC analysis shows that the decade of investment for growth (1947-57) that followed World WarTwo achieved an average growth rate of 3.3% But the decade of cuts (2009-19) that followed the bankers’ crisis achieved average growth of just 1.9%.

These examples are part of a wider pattern for the UK’s responses to economic crises over the last century. The UK recovers better and faster when the approach is investment for growth, prioritising workers’ wages, strong public services, a decent safety net and building the capacity of both private and public sectors.

Approaches based on cuts to spending only serve to hold back the whole economy. This can be seen not only during 2009-2019, but also during 1921-31, when severe cuts meant growth averaged just1.9%.

In both 1921-1931 and 2009-2019, slow growth led to higher national debt. By contrast, periods of recovery based on investment for growth have reduced national debt, because they are successful at generating broad growth and making the country wealthier.

A plan to get Britain growing out of the crisis – and stop mass unemployment  

The pandemic alone did not cause this economic crisis. It was made worse by a decade of austerity and failure to strengthen the UK’s economy. Choosing the wrong approach to recovery now risks embedding low growth, long-term unemployment and all the social ills that go alongside.

An investment for growth approach means taking action on six key areas: 

  1. Decent work and a new way of doing business: New business models based on fairer employment relationships. A fairer share for workers of the wealth they create, with a higher minimum wage and new collective bargaining rights.
  1. Sustainable industry: Economic stimulus for a just transition to net zero carbon. Rebuilding the UK’s industrial capacity with modern tech and training in new skills.
  1. A real safety net: Reforms to social security to provide help faster and prevent poverty. A job guarantee scheme so everyone can work and long-term unemployment does not take hold.
  1. Rebuilding public services: Bringing our public services back to full strength, with decent pay for those who looked after us in the crisis, and a new focus on good jobs and direct employment in social care.
  1. Equality at work: Specific actions to make sure women, disabled people and BME groups do not suffer disproportionately from the impact of the coronavirus recession.
  1. International solidarity: New international rules must prioritise decent jobs and public services for all.

The evidence from the post-war recovery is that this investment for growth recovery plan can pay for itself. Millions of working families with higher disposable income create the economic demand needed for strong growth and healthy public finances. Stronger public services and an effective safety net will support people to start and grow businesses, and will better protect against a future pandemic.

TUC General Secretary Frances O’Grady said: “The UK’s weak economy and ten years of cuts left our country unprepared for coronavirus. Only the dedication of millions of individual workers kept our country going.  

“Let’s learn the lesson. Together, we can work our way safely out of this recession. Let’s make sure everyone has a decent job, with fair pay and security for their family. Let’s thank our key workers with the pay rise they have earned. And let’s not consign millions of our fellow citizens to the despair of unemployment.

“Today the TUC publishes our plan for recovery. At its heart is good jobs. Jobs in a reborn UK manufacturing sector. Jobs in a social care sector finally getting some respect. Jobs in the green tech of the future. Let’s rebuild our country through hard work, determination and investment in all our futures – not cuts to spending, deregulation and tax breaks for millionaires and bosses.”

She added:  “Seventy-five years ago, Britain was bloodied, battered – and broke. Yet after the war Britain’s economy grew faster than ever before. We did it not by pay freezes and cuts, but making the priority decent jobs for everyone, new homes, infrastructure and a new national health service.   

“So let’s channel the spirit of 1945. Coronavirus doesn’t have to equal mass unemployment and a poorer, meaner country. We can do what the post-war generation did: grow our way out of this crisis and build a better life for everyone.”

TUC Report ‘A Better Recovery’

First Minister: further action to tackle ’employment challenge created by Covid’

Statement given by the First Minister Nicola Sturgeon at a media briefing in St Andrew’s House on Tuesday 19 May:

Good afternoon everybody. Thank you for joining us. I want to start – as I always do – by updating you on some of the key statistics in relation to Covid-19 in Scotland.

As at 9 o’clock this morning, there have been 14,655 positive cases confirmed – an increase of 61 from yesterday.

A total of 1,447 patients are in hospital with Covid-19 – 969 who have been confirmed as having the virus, and 478 who are suspected of having Covid. That represents a total increase of 20 from yesterday, but within that a decrease of 36 in the number of confirmed cases.

A total of 59 people last night were in intensive care with either confirmed or suspected Covid 19. That is a decrease of 4 since yesterday.

I am also able to confirm today that since 5 March, a total of 3,408 patients who had tested positive for the virus have been able to leave hospital.

Unfortunately though I also have to report that in the last 24 hours, 29 deaths have been registered of patients who had been confirmed through a test as having Covid-19 – that takes the total number of deaths in Scotland, under that measurement, to 2,134.

Tomorrow we will have the latest publication from National Records of Scotland, which include not only people that have died having tested positive but all those deaths where Covid-19 has been mentioned on a death certificate.

As always, I want to send my deepest condolences to everyone who has lost and is grieving for a loved one as a result of this virus.

I also want to thank – as I always do – our health and care workers. The whole of the country continues to be very grateful to you for the extraordinary work that you are doing in these very challenging circumstances.

I have two items I want to briefly update on today. The first relates to the publication this morning of the latest employment figures in Scotland. These are for the period from January to March of this year. These are the first figures that include any of the period of the Covid-19 crisis.

They show that 113,000 people in Scotland are now unemployed – that is up from just under 100,000 in the previous three months.

That is an unemployment rate of 4.1%. Now, by historical standards, that actually is still a relatively low rate but of course it is important to stress that these figures, since they only extend up to the end of March, do not reflect the full economic impact of the pandemic.

They undoubtedly further demonstrate the need to carefully get our economy moving again as quickly as we are able to do that safely. And they underline the continuing need for government action to support the economy, and to help people keep their jobs or to enter or re-enter the workforce.

We know that the essential public health measures that we have had to take to deal with what is a public health emergency, are in themselves creating an economic emergency and that will have impact on people’s jobs, living standards and inequalities in our society.

And although the Job Retention Scheme has offered some relief to many employers and employees, I am very aware that many people will be deeply concerned about the future of their livelihoods.

That is why we have already allocated more than £2.3 billion to support businesses and protect livelihoods, and it is why we have welcomed so warmly many of the measures taken by the UK Government –including the Job Retention scheme.

In addition, Skills Development Scotland – as I discussed last week – has expanded its support for people seeking training or employment by establishing a phoneline and online service. The new online service – which highlights links to free courses which are available – has received 120,000 visits since it launched just over three weeks ago.

Today we are taking further action to tackle the employment challenge created by Covid.

Our Enterprise and Skills Strategic Board – which was first established 2 ½ years ago – will co-ordinate rapid action across our enterprise and skills agencies.

In doing so, it will ensure that our actions, now, are helping to equip people with the skills they need for the future. It will report back to us in June on what additional measures we need to take.

However I can confirm today that we will be investing a further £33 million to support people back to work as we gradually get the economy opened up again.

This initial  funding – most of which will be allocated to Fair Start Scotland, our devolved employability service –  will have a particular focus on helping those most adversely affected in times of economic downturn –  which are young people, disabled people and lone parents.

Today’s announcement is one further action amongst many in our efforts to tackle the economic impacts of this crisis, but it is, I think, an important one.

We know all too well from previous recessions that the longer people stay jobless, the greater the chance of further impacts – their skills can deteriorate, their confidence can fall, and that in turn can have an impact on future prospects.

We also know that these effects are of course bad for individuals – especially young people – and that they are also damaging for the economy as a whole. And that means that when an upturn comes, when the economy starts to recover, employers can find it more difficult to hire the people they need.

For all of these reasons, we are determined to do everything we can to protect Scotland’s workforce; to minimise – as far as we can  – the increase in unemployment; and to ensure that we are ready for a sustainable recovery. Today’s actions represent a further step in helping us to do that.

The second issue I want to talk about relates to the fact that this week is Mental Health Awareness Week. This year’s theme is kindness.

In many ways that’s especially appropriate right now. Kindness should, I think, be one of the core values of any good society.  And, as I suspect most of us have experienced in recent weeks, even small acts of kindness can make a huge difference to the way someone is feeling.

We have been aware throughout this crisis of the impact that Covid-19, and our lockdown measures, are likely to have on people’s mental health.

That is why we have expanded NHS 24’s telephone and online services to support mental health; it’s why we established a National Wellbeing Hub to support the mental health of NHS and social care staff; and it’s also why we launched the “Clear Your Head” campaign, which you may have seen in the media.

Clear Your Head provides practical advice on how to stay active, keep connected with friends and family, and create healthy routines to help get through this crisis.

Today we are making a further investment to support the mental health and wellbeing of parents and carers in particular.

Solihull Online is a programme that helps parents and carers to learn about what their  child may be going through, and developing nurturing and supportive relationships. From today, all parents and carers in Scotland will have access to the programme and if you are interested in this you can find more information by going to ParentClub.scot.

The final point I want to make, is that one of the most important things to remember during Mental Health Awareness Week, is that it’s okay not to feel okay – and that help is available.

You can speak to someone if you need to, and I would encourage you to do so. The Clear Your Head website – clearyourhead.scot – brings together our information about support that is available for mental health.

So please have a look at the website during the Awareness Week. And please, continue, as far as all of us can, to show kindness to each other as we try get through this crisis together.

Before I hand over to the CMO, I want to emphasise once again our key public health measures.

As is said yesterday, on Thursday this week we will publish a routemap, setting how on a phased basis, we will ease the lockdown while continuing to suppress the virus.

My hope and intention is that we will take the first concrete steps on that journey next week.

But, we will increase both the likelihood and the extent of that by sticking to the rules now.

Please stay at home except for essential purposes- such as daily exercise, going to essential work that you can’t do from home, or buying essential items.

You can now exercise more than once a day – but when you do leave home, stay more than 2 metres away from others. And do not meet up with people from other households.

Please think about wearing a face covering if you are in a shop or on public transport. And remember to wash your hands thoroughly and regularly.

Finally, if you or someone else in your household has symptoms of Covid-19, then you should stay at home completely. Those symptoms are a high temperature, a persistent cough, or now a change or loss of smell or taste.

For now, these restrictions do remain essential.

They are helping us to slow down the spread of the virus, to protect the NHS, and to save lives.

So thank you once again, to everyone, for your cooperation.

Report reveals impact of coronavirus on poverty in Edinburgh

City council leader Adam McVey has outlined the measures the Council will take following a report from the Edinburgh Poverty Commission into the impact the Covid-19 pandemic is having on residents in the city.

The interim Poverty and Coronavirus in Edinburgh report has taken testimonies from people directly affected by the pandemic focussing on areas such as jobs, people’s incomes, housing, homelessness, the cost of living, health and social isolation.

Leader Adam McVey pledged the Council will do everything it can to support those most in need and welcomed the report which will inform the future direction the Council takes in tackling poverty in the city.

He said: “I welcome that this report recognises the work done by the Council, partners, third sector and volunteers across the city to respond positively and quickly to deliver lifeline services including vital food and medical supplies for citizens affected by the coronavirus measure that have been put in place.

“Today’s report contains important findings with vital and timely testimonies on the real impact that lockdown is having on people’s lives. While we have all been affected by the ongoing situation, it is clear from this report that this pandemic has been particularly challenging for those who were already in or at risk of poverty in the city.

“We’re absolutely committed to making sure this evidence shapes our continuing response to this emergency over the coming months, as well as the planning for how we will rebuild the city when this crisis has passed.

“It’s so important that while we look to address the additional hardship and pressures this crisis has brought, we also build on the renewed sense of community and collaboration we have witnessed across the city.

“As we plan for Edinburgh’s recovery, we will continue to be ambitious and make sure our responses are guided by our long-term commitment to boosting sustainability, tackling poverty and improving residents’ wellbeing.

“We will continue working with the Scottish and UK Governments to secure the right level of ongoing financial support to allow us to rebuild and create a fairer city for all going forward.”

In specific response to the actions the Commission has put forward, the Council will:

  • continue to deliver compassionate support directly to people in the most need during this period of emergency – this includes support for essential food supplies and medicine deliveries to people self-isolating and offering critical support to people in vulnerable situations through our Resilience Centres
  • make sure the support mechanisms set up by UK and Scottish Governments reach everyone in Edinburgh who needs them – we’ve already processed over 4,600 applications for Scottish Welfare Fund support, distributed nearly £600,000 in crisis payments to citizens and directed £61m in government grants to organisations in Edinburgh to help employers and the self-employed
  • make sure safe and secure housing options continue to be available for those people in temporary accommodation and rough sleeping who have been housed through emergency measures during this crisis, and
  • make sure that the city takes a co-ordinated and joined up approach to responding to and recovering from this crisis.

In the coming weeks the Council will publish its first plans for how the city will adapt and rebuild from this crisis throughout the rest of this year and beyond. A key element of this recovery programme will be ensuring that the twin targets of being fair and green for all lie at its heart.

The council will continue to encourage partners who are invested in the prosperity of the city work with them to achieve a ‘fair and green economic recovery’ which will include the work of both the Edinburgh Poverty Commission and the Edinburgh Climate Commission.

The final report by the Edinburgh Poverty Commission and their findings will be published in the autumn.

20200518_EPC_Interim_Coronavirus_Report

 

Shapps: ‘We want to keep this momentum going’

Transport Secretary Grant Shapps gave the UK Government’s daily media briefing yesterday.

He described how the time during lockdown has been used to fix and upgrade road and rail infrastructure, including plans to help the economy bounce back.

Good afternoon and welcome to today’s Downing Street press conference. I’m pleased to be joined by Professor Jonathan Van-Tam.

Latest data

Let me start by updating you on the latest information from the Government’s COBR data file.

Through our monitoring and testing programme, as of today:

  • 2,219,281 tests for coronavirus have now been carried out in the UK, including a new record of 126,064 tests carried out yesterday
  • 233,151 people have tested positive, that’s an increase of 3,446 cases since yesterday
  • 11,041 people are in hospital with COVID-19, down 14% from a week ago, when 12,802 patients were hospitalised
  • and sadly, of those tested positive for coronavirus, 33,614 have now died – that’s an increase of 428 fatalities since yesterday.

This new figure includes deaths in all settings not just in hospitals.

Our deepest sympathies go out to the families and friends as the nation battles to defeat the disease.

Main content

Today I’m going to set out how – whilst the country has been at a virtual standstill – this downtime has been used to fix and upgrade the nation’s road and rail infrastructure, along with plans to help our economy bounce back.

But before I set out today’s transport announcements, let me briefly remind you of the government’s roadmap out of this crisis.

As you know, we have established a new COVID Alert System, with five levels – based primarily on the R value and the number of cases.

Throughout the lockdown, we have been at Level 4.

Thanks to the British people, we have brought the R down and we can now begin moving carefully to Level 3.

From this week we’re at Step 1, meaning that:

  • those who cannot work from home should now speak to their employer about going back to work
  • you can now spend time outdoors and exercise as much as you like
  • you can meet one person who’s not part of your household outside, provided you stay 2 metres apart

Step 2 – from June 1, at the earliest, as long as it’s safe, we aim to allow:

  • primary schools to reopen for some pupils, in smaller class sizes
  • non-essential retail to start to reopen
  • cultural and sporting events to take place behind closed doors, without crowds

And then Step 3 – no earlier than July 4, and again, only if the data says it’s safe, we aim to allow:

  • more businesses to open, including those offering personal care, those in the leisure sector, together with places of worship

We can control this virus if we stay alert.

But what does staying alert actually mean?

Staying alert, for the vast majority of people still means staying at home as much as possible, and working from home if you can.

But it also means:

  • limiting contact with other people
  • keeping your distance if you go out
  • washing your hands regularly
  • wearing a face covering in enclosed spaces where it’s difficult to be socially distant – for example on public transport
  • and if you or anyone in your household has symptoms, you all need to self-isolate

If everyone stays alert and follows the rules, we can control coronavirus by keeping the R down and reducing the number of infections.

This is how we can continue to save lives, and livelihoods, as we begin as a nation to recover from coronavirus.

Transport context

Today I want to update you on the measures we’re taking to speed up our economic recovery while keeping people safe.

For 2 months, we’ve remained in lockdown, travelling as little as possible, and in doing so, the whole country has protected the NHS and helped reduce the number of COVID infections.

But as we begin making tentative steps towards restarting our economy and people in some sectors who can’t work from home begin to return to their workplaces, it is clear that transport has a critical role to play.

Last Saturday, I explained why it’s our civic duty to avoid public transport, if at all possible.

Because, even when we have 100% of services up and running, there may only be socially-distanced space available for 1 in 10 passengers.

Therefore, in order to help reduce crowding, we set out a £2 billion programme to put cycling and walking at the heart of transport, with £250 million emergency spending already underway.

Over the past week, we have followed this up by publishing 3 pieces of detailed guidance.

First, for local authorities in England, explaining how they should prepare for significantly-increased numbers of cyclists and pedestrians.

Next, for the transport sector, to ensure they provide safer services for those travelling, and safer workplaces for their staff.

And third, and most importantly, for passengers.

We’re asking the public to help ensure that the transport system does not become significantly overwhelmed by returning commuters.

The guidance makes clear, that if you can’t walk or cycle but you do have access to a car, please use it, rather than travelling by bus, train or tram…..

Especially where that public transport is liable to be overcrowded.

And, for those people who absolutely need to use public transport…

It also explains how you can best protect yourself and those around you.

Transport upgrades during lockdown

In the coming weeks, as we carefully and cautiously restart sectors of our economy, and people begin to travel once again…

They should notice that, whilst the country has been in down-time …

…with the roads and railways quiet…

We’ve been busy…

Getting on with essential work….

Fixing the nation’s infrastructure…

So we can recover faster when the time comes.

This upgrade programme…

…the kind of work that – at any other time – would cause inevitable disruption and service delays, whilst costing the taxpayer more…

…has instead been carried out in previously unimaginable circumstances of a largely unused transport network.

For example, we completed 419 separate Network Rail projects over Easter, with a further 1,000 upgrades being carried out throughout the May bank holidays.

Meanwhile, Highways England has been busy accelerating maintenance projects on the nation’s roads.

Last week, for example, we opened the vital A14 upgrade 7 months ahead of schedule.

This is a route normally used by 85,000 drivers daily, which will dramatically improve access to the UK’s largest container port at Felixstowe and permanently boost the distribution of goods around the UK.

As Northern Powerhouse minister – I can report that – in the North, we’ve delivered £96 million of rail infrastructure improvements during April.

And throughout the country, we’ve accelerated maintenance projects on road and rail…

Whilst always sticking to PHE safety guidelines…..

So that altogether, Highways England has delivered over £200 million of upgrades, and Network Rail £550 million worth, during April alone.

I’d like to thank the army of transport and construction workers who have been grafting very hard throughout the lockdown.

Building future infrastructure

But to make sure that Britain is ready to bounce-back from coronavirus…

Today I can announce nearly £2 billion to upgrade our roads and railways, to put our transport infrastructure in the best possible shape and to get our economy growing once again.

This package includes £1.7 billion for local roads – making journeys smoother and safer for drivers, hauliers, cyclists, motorcyclists, pedestrians and others…

By filling millions of dangerous potholes, we will make our roads safer – and encourage more people to cycle, or even take part in the upcoming e-scooter trials…

Helping more people play a part in relieving pressure on public transport.

This investment will also help fix damage caused by winter flooding, repair roads and bridges, and fund numerous road improvement schemes.

As more people become mobile again, we’ll be building a network of rapid charging stations for electric cars…

Including a big expansion of rapid-charging facilities at motorway service stations…

Helping the country to lock-in the dramatic air-quality improvements we’ve experienced during the coronavirus lockdown.

A better future

Amid all the sad news and tragedy of loved ones we’ve lost, we’ve somehow managed to do things in weeks that would normally take years…

Building new hospitals…

Moving public services online…

Making instant reforms and fast-tracking new laws…

Extraordinary changes in the way that employers and employees work…

Effectively taking large swathes of the economy online almost overnight…

Now we want to keep this momentum going.

If building a new hospital takes 2 weeks, why should building a new road still take as long as 20 years?

If GP surgeries can quickly move online, why are most rail passengers still travelling on cardboard tickets?

We must exploit our newfound capacity to respond at pace and apply it to rapidly improving our infrastructure.

And we must examine why it is that bureaucratic bindweed makes British infrastructure some of the costliest and slowest in Europe to build.

Because whilst many will continue to work from home even after this immediate crisis…

…both the long-term transport trend and the pressing need to level-up communities across the country, dictate that infrastructure will be even more important in stimulating our recovery and supporting new jobs.

So by combining fast home-internet access, with vastly upgraded transport connections, we can help revive many of our small and medium-sized towns which over decades have been left behind.

Closing remarks

This has been a devastating start to the year, not just for Britain, but for the world.

And we are only at Phase 1 of the recovery plan.

But we all know that it is our reaction to adversity that will ultimately define how we recover.

We must harness our approach to tackling the pandemic….

And apply it to rebuilding our own infrastructure.

With the same swift action, innovation, and collective determination that has characterised the past few months…..

And in doing so, we can emerge stronger.

Chancellor extends furlough scheme until October

The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today.

  • Coronavirus Job Retention Scheme will continue until end of October
  • furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
  • new flexibility will be introduced from August to get employees back to work and boost economy

In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.

As we reopen the economy (at least in England – Ed.), we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.

The scheme is just one part of the government’s world-leading economic response to coronavirus, including an unprecedented package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.

Today the UK government is also publishing new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis.

This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.

Mike Cherry, National Chairman of the Federation of Small Businesses, said: “The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome.

“Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today.

BCC Director General Adam Marshall said: “The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

“The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

Dame Carolyn Fairbairn, CBI Director-General, said: “The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.

“Extending the furlough to avoid a June cliff-edge continues the significant efforts made already and will protect millions of jobs.

“Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step-by-step, while supporting livelihoods.

“Firms will, of course, want more detail on how they will contribute to the scheme in the future and will work with government to get this right.

“Above all, the path of the virus is unpredictable, and much change still lies ahead. The government must continue to keep a watchful eye on those industries and employees that remain at risk. All schemes will need to be kept under review to help minimise impacts on people’s livelihoods and keep businesses thriving.

“The greater the number of good businesses saved now, the easier it will be for the economy to recover.”

Commenting on the extension of the government’s job extension scheme today, TUC General Secretary Frances O’Grady said: “We are pleased ministers have listened to unions and extended the job retention scheme to the autumn. This will be a big relief for millions.  

“Changing the rules to allow part-time working is key to enabling a gradual and safe return to work. And maintaining the rate at 80% is a win for the pay packets of working families.

“As the economic consequences of Covid-19 become clear, unions will keep pushing for a job guarantee scheme to make sure everyone has a decent job.”

Anneliese Dodds MP, Labour’s Shadow Chancellor, said: “The furlough scheme is a lifeline for millions. The Government was right not to pull it away.

“It is welcome that the Chancellor has heeded the call by Labour, trade unions, and businesses for more flexibility in the scheme, to support employees to go back to work part-time.

“The government must clarify today when employers will be required to start making contributions, and how much they’ll be asked to pay. If every business is suddenly required to make a substantial contribution from the 1st August onwards, there is a very real risk that we will see mass redundancies.”

Extension to Furlough Scheme could cost the Government £70 billion

The Chancellor has extended the current Furlough scheme until the end of October but he now has a huge challenge to get this right, say leading tax and advisory firm Blick Rothenberg.

Heather Self a partner at the firm said: “He needs to achieve a “Goldilocks” effect – not too hot, and not too cold.  If he provides too much it will be very expensive and may discourage firms from reopening. If he provides too little thousands of people could lose their jobs.

She added: “It is going to be a turbulent time for the labour market in the Autumn. Some sectors, such as the hospitality and tourism sector, are likely to see significant redundancies, while others such as construction and financial services will be relieved to see a gradual winding-down of support.

From the announcement today, we now know that:

–          Support will be continued to the end of July in full, with employers required to contribute after that date.

–          Part time working will be permitted, but only for some employees

–          The same level of overall support – 80% of wages up to a maximum of £2500 a month – will be maintained

Heather said: ” As the furlough scheme is reduced the Government needs to incentivise business and come up with creative ideas about how business can keep going and retain staff.

“The Chancellor could not go on paying out billions of pounds indefinitely, and everyone understands that, but there needs to be much more joined up thinking between Government and business.”

So far, some 7.5m employees have been furloughed, at a cost approaching £10bn.

The expected costs to the end of July are likely to be around £50bn, with the extension at a reduced level to the end of October perhaps costing a further £20bn.  These are very significant sums, amounting to around 10% of total Government receipts.

As Britain seeks to get back to work, the pressures on different sectors will be very uneven.

While some sectors, such as construction and financial services, are getting back to work, others such as leisure and hospitality will be much slower to recover.

And the position in the tourism and heritage sectors is likely to become critical if they lose the whole of the Summer season.

Heather Self said: “Enabling part time work is welcome, as it will permit a gradual return to work.  But the Chancellor said this would only be available to businesses “currently using” the scheme – it is not clear what the cut-off date will be for businesses still considering whether they need to furlough employees.

“The Chancellor needs to pay attention to the needs of different sectors, difficult though this may be.  Leisure and hospitality businesses are unlikely to be able to cope with reopening fully by the end of July, and may need to contemplate redundancies.

“Additional support beyond the furlough scheme will be needed for a long time – whether loans such as the CBILS scheme, or grants, or incentives such as an increase in the Employment Allowance to encourage employers to maintain their staff levels, or even take on new employees.”

Small business Bounce Back Loans launch today

  • small businesses will be able to apply for quick and easy-to-access loans from today
  • businesses will be able to borrow between £2,000 and £50,000 with the cash arriving within days
  • loans will be 100% government backed for lenders, and businesses can apply online through a short and simple form

Thousands of small firms and sole traders – including high street staples like hairdressers, coffee shops and florists – will be eligible for 100% government-backed Bounce Back Loans to help them make it through the coronavirus outbreak.

From 9am this morning, small business owners can apply to accredited lenders by filling out a simple online form, with only seven questions.

The government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans. And any business that has already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to this generous new scheme.

The Bounce Back Loan scheme is the latest step in a package of world-leading support measures launched by Chancellor Rishi Sunak – with £7.5 billion already awarded in business grants, 4 million jobs supported through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.

The Chancellor of the Exchequer, Rishi Sunak, said: “Small businesses will play a key role creating jobs and securing economic growth as we recover from the Coronavirus pandemic.

“The Bounce Back loan scheme will make sure they get the finance they need – helping them bounce back and protect jobs.”

Business Secretary Alok Sharma (above) said: “We are backing small businesses, which are the backbone of our communities, with the support they need to stay afloat.

“This new scheme of 100% government-guaranteed loans gives owners of even the smallest businesses the confidence and flexibility to borrow a sum which works for them. This will help ensure they can continue to trade, and be a key part of our efforts to reboot the British economy.”

As part of the scheme, small businesses can borrow between £2,000 and £50,000. The government will provide lenders with a 100% guarantee and cover the cost of any fees and interest for the borrower for the first 12 months. No repayments will be due during this period to enable firms to get back on their feet.

The loans are available through a network of lenders, including the five largest banks.

Coronavirus: ‘A Time To Be Bold’

British Chambers of Commerce President, Baroness Ruby McGregor-Smith, has written an open letter to the Prime Minister setting out principles for a phased restart of the UK economy.

The leading business group set out its integrated approach, the first step in a three-stage process,as the government prepares to ease initial lockdown restrictions.

The letter reads: “The fight against the virus must remain the top priority, but the planning and communication of a carefully phased approach to lifting lockdown must begin immediately if we are to harness the public health and economic benefits, both now and in the future.”

Praising the work of Chambers of Commerce across the UK as the “first responders” of the business world, the letter is accompanied by detailed policy proposals for safely reopening the economy, comprising steps to:

  • Safely reopen public spaces and restore services (including schools and public transport)
  • Safely reopen workplaces and commercial spaces
  • Minimise job losses and business failures
  • Rebuild supply chains and customer bases; and
  • Put the UK economy on a high-growth, high-wage and low unemployment trajectory as soon as possible

The letter continues: “This is a time to be bold. Government should not shy away from sustaining high levels of public spending in order to restart and renew our communities and the economy in the short and medium-term, while not tying the hands of future generations.

“An expansionary fiscal policy, including a commitment to transformative infrastructure investment, will be needed in order to generate the returns that will help to pay down the national debt in the longer-term.

“We see the journey ahead as having three phases:

  • Restart: a phased reopening of the economy
  • Rebuild: building resilience for firms and households
  • Renew: returning to prosperity and growth

“We plan to share some principles for each of these three phases over the coming weeks, beginning today with ‘Restart’.

“Fundamental prerequisites to beginning this journey include mass testing and contact tracing; clear decisions and guidance on what PPE is needed in workplaces; and proactive steps to ensure adequate supply of PPE to both the health service and to businesses where necessary.”

The letter welcomes the “speed and scale” of existing government support schemes and indicates that they will need to “continue to evolve to support a phased restart of the economy, enabling businesses to survive through this crisis and thrive in the future.”

The letter concludes: “We commit to working with you and your colleagues across Government on exploring these phases in detail as we plan our path forward. We owe nothing less to our businesses, and the communities and people they support, who have been battered by this storm.”

20-05-01 Letter from British Chambers of Commerce

£100 million funding package to help Scottish business

A £100 million package of additional grant support for small and medium sized businesses (SMEs) and newly self-employed people has opened for applications.

The announcement will see 3,784 Edinburgh businesses receive £49.45 million cash support to help them through the coronavirus crisis.

The three separate funds will be administered by local authorities and Scotland’s enterprise agencies and will begin to pay out grants in early May.

They include a £34 million hardship fund for the newly self-employed, a £20 million fund for small and micro enterprises in the creative, tourism and hospitality sectors and £45 million for viable SMEs crucial to the Scottish economy which are vulnerable.

Economy Secretary Fiona Hyslop said: “Our economy has been hit hard by this crisis and previously profitable businesses have seen demand dry up overnight. Our support will help alleviate the hardship those individuals and companies are facing.

“I am particularly pleased that we will be able to help the newly self-employed who do not qualify for the UK’s scheme and are facing financial hardship as a result of coronavirus (COVID-19).

“We also recognise the particular impact of COVID-19 on our creative, tourism and hospitality sectors at what would normally be their busiest period. This fund is intended to relieve the hardship of smaller firms that are ineligible for other forms of support.

“As well as dealing with this immediate crisis, we must look to the future. We must ensure that viable and vital businesses in all sectors with a part to play in strengthening the resilience of Scotland’s economy survive this crisis and thrive in future, which is why £45 million is being allocated to support those firms.

“We continue to engage with businesses on a regular basis to understand their needs and press the UK Government to deliver for them.”

SNP MSP Gordon MacDonald (above) has welcomed new figures showing that 3,784 businesses in the capital have received Scottish Government grants to support firms through the coronavirus crisis.

A total of £49.45 million has been awarded in Edinburgh through a Scottish Government scheme to support small businesses and the retail, hospitality and leisure sector.

The small business grant is worth over £1 billion to business, and is part of the wider business support package worth £2.3 billion.

In order that funding can be distributed as quickly as possible, eligibility for the grant scheme is linked to the non-domestic rates system.

Edinburgh Pentlands MSP Gordon MacDonald said: “This is a very difficult time for businesses.

“This Scottish Government funding is designed to support firms and ensure that our economy is on the best possible footing when we get through this health crisis.

“Our support for business is now worth £2.3 billion. This is more than the Scottish Government has received from the UK Government and actively works to fill the gaps in the UK schemes with tailored support for the Scottish economy.

“I encourage all businesses across Edinburgh to ensure they are receiving the support they’re entitled to.”

Applicants can access these funds and more via the www.FindBusinessSupport.gov.scot website.