“11% reported that it is likely they will have to make redundancies in the next 3-6 months putting a potential 1.85 million jobs at risk across the UK”
Owner managed businesses coming out of the third lockdown are still struggling with the impact of Covid-19 and an uncertain economic outlook, according to the Association of Practising Accountants (APA):
11% reported that it is likely they will have to make redundancies in the next 3-6 months putting a potential 1.85 million jobs at risk across the UK
24% reported a negative or very negative impact on their business since the UK left the EU
53% of respondents identified uncertain trading conditions as their biggest single challenge
15% cited Brexit supply chain issues as their single biggest challenge
Nonetheless:
84% of respondents reported that they were either confident or somewhat confident that they would be able to access the finance that they needed over the next 6 months with anecdotal evidence suggesting that the major banks were continuing to lend
Longer term 54% were more positive about their economic prospects outside the EU while 46% were less positive
The research among 435 owner managed businesses across the UK was carried out between April and May by the APA, a network of 17 leading business advisory firms who represent over 14,000 of these businesses.
Commenting on the findings APA Chairman Martin Muirhead said: “What is clear from our research is that a significant minority of owner managed businesses who have managed to pull through the last 12 months are still in survival mode with uncertain trading conditions being the biggest concern to a majority.
“Nonetheless there is also evidence to suggest that those businesses that have managed to weather the impact of Covid-19 are now more resilient and that existing and proposed Government support measures have generally been well received.
“Over the coming months it is vital that Government maintains a flexible and targeted approach to business support focusing resource on those sectors where there is the greatest need. Owner managed businesses form the backbone of the UK economy and need continued, targeted support as we emerge from this third lockdown.”
EXPLORE Data Science Academy (EDSA) is investing up to £250,000 in the strongest and highest achieving graduates in Scotland by offering as many as 40 free scholarships for its six- month online data science courses.
Applications are open now until the 6th June 2021.
EDSA is inviting top graduates that have excelled in their studies and consistently performed well academically to apply and expand their knowledge in Data Science. The EDSA has trained over 1000 young data scientists in South Africa since 2017 and has a graduate employment rate of over 90% at above average starting salaries.
Its courses were recently recognised by Amazon Web Services (AWS), which has partnered with EDSA to offer data science learning to young Africans.
“We believe that our data science course formula, which includes self-study, team challenges, real world problem solving, and world class facilitators, can produce similar results in the UK,” said Shaun Dippnall, CEO of EDSA.
“The higher education system is not producing a sufficient number of work-ready graduates. Our courses are designed to ensure that our students, once graduated, have both the technical and practical skills needed in the workplace,” Dippnall adds.
On completion, the EDSA will assist graduates to find employment through its network.
Skills shortages
A recent survey found that 73% of UK firms believe they lack the talent to complete AI and data science initiatives. EXPLORE Data Science Academy is bridging that gap by offering a suite of comprehensive online courses including Data Science, Data Engineering, Data Analytics, and Business Intelligence, that deliver specialist training in a real-world environment.
Dippnall believes this is an ideal opportunity for highly talented Britons to top up their skills and embark on an exciting career in one of the most sought-after careers at no cost.
“As data becomes the currency of modern business, the race to become data-driven has seen organisations investing heavily in core analytics skills, but lack of support, funding and time available for upskilling are cited as current challenges within the UK data science community,” Dippnall says.
Real world problem solving
EDSA’s courses are practical and deal with real-world problems in business. “The innovative design of our learning platforms and the passion of our scientist facilitators equip EXPLORE students to do great things. Facilitators are experienced in tackling real-world problems and skilfully mentor learners throughout the programme,” he adds.
While the EXPLORE Data Science Academy is new to the UK, its consultancy division EXPLORE AI has been delivering artificial intelligence solutions for Britain’s largest water utility supplier, Thames Water, as part of a project to monitor the supply and demand on its network. There are more than 70 data scientists from EXPLORE AI working for Thames Water, many of which graduated from EDSA.
“The Thames Water success story validates EDSA’s decision to expand out of the South African context and take its place on the world stage. We are excited about our entry into the UK market and I encourage exceptional graduates to apply. This could well be the gateway for 40 such candidates to embark on a thrilling and rewarding career – at no cost. What have you got to lose?” concludes Dippnall.
Data Science Course details
Learners will gain an overview of Data Science and Machine Learning – the skills required to be a data scientist. In the Fundamentals phase they learn how to clean, analyse and visualise data as well as how to effectively communicate the findings. During Machine Learning, students solve real-world problems by building regression, classification and unsupervised learning algorithms in Python. This involves data exploration insight building, improving and communicating models from a raw and unstructured dataset.
Topics Covered:
Data Science Fundamentals
SQL – Create and query a SQL database to extract valuable information
Python Programming – Create Python functions to process and analyse datasets
Visualisation – Building dynamic and interactive dashboards using Power BI
Machine Learning
Regression – Learn about linear regression, variable selection, feature engineering, regularisation, decision trees, parametric methods, ensemble methods and bootstrapping. Build regression models and test the results of forecasts.
Classification – Learn about logistic regression, natural language processing, decision trees, support vectors, neural networks, ensemble methods and hyperparameter tuning. Build and optimise classification models to improve the accuracy of predictions.
Unsupervised Learning – Learn to apply unsupervised techniques, clustering, dimensionality reduction and recommendation systems to gather insight and derive patterns from unstructured data
Have what it takes to be a data scientist?
To apply for a free slot in this world class data science course, applicants must go to https://explore-datascience.net/ and undertake an aptitude test to qualify for selection.
The scholarship application window is open now until and the 6th June.
Capital’s employability commitment hits 10 year milestone
Edinburgh’s youth employability commitment, the Edinburgh Guarantee, marks a decade while expanding its support to help people of all ages and backgrounds:
Celebrating its 10th year, the Edinburgh Guarantee, originally the Capital’s youth employability commitment, is expanding to help people of all ages access fair work, training and employment opportunities with a new look website launched today by the City of Edinburgh Council.
Recognising the impact the pandemic has had on businesses and training providers, and the ripple effect this has on people’s prospects, there will also be a particular focus on those facing additional barriers to employment with the overall aim to give equal access to job and education opportunities.
The website will be a one stop shop to connect and sign up employers across the city, while offering people a quick and easy access point to job boards, information on training opportunities and additional support routes available.
Through the Edinburgh Guarantee team and network of employability partners, employers are incentivised to get involved by getting access to additional recruitment support, information on possible funding available and ongoing assistance for their business and new hires where required. All of this makes it easy and rewarding for employers to pledge their support.
Councillor Kate Campbell, Housing, Homelessness and Fair Work Convener, said: “The Edinburgh Guarantee is rooted in the principal that everyone should have the opportunity to work, and access to training and skills development, and that everyone who is able to can be part of our city’s recovery. And that by working together, we can create those opportunities and a better future for everyone.
“Now in its 10th year, the Edinburgh Guarantee has been a great success helping so many young people move into fair work or gain the education and training that they deserve. We’re now widening this commitment to include people of all ages and backgrounds which clearly shows our intention to make sure no one is left behind as a result of this pandemic.
“It’s been great to hear how so many organisations across all sizes and sectors are able to play their part. Longstanding lead employers such as Standard Life Aberdeen, NHS Lothian and the City of Edinburgh Council, have paved the way for us to get to where we are today.
“And it is exciting to see that network grow to welcome new and smaller organisations and businesses like Basketball Scotland, JAD Joinery and The Wee Book Company – a small business that recently added to its workforce with a new recruit, made possible through Edinburgh’s Employer Recruitment Incentive, which is a funding package for private SMEs and third sector organisations to help fill vacancies and create new and additional jobs.
Councillor Mandy Watt, Vice Convener, said: “On this 10 year anniversary of the Edinburgh Guarantee I’d like to thank those employers that have been with us since the start and led the way for other businesses and organisations by demonstrating the benefits of getting involved over the last decade.
“We’ve recognised that the end of the furlough scheme will have serious implications and most likely further increase the levels of unemployment across Scotland, so we’re working hard to support and incentivise employers to play a part in the city’s recovery – such as helping smaller supporters access funding to help them to get involved.
“Over the past year we’ve spoken to business owners and employers from across all sectors, gaining valuable insight into the key implications of the pandemic on their industry. This has given us an overview of those who are currently able to offer opportunities as well as those who we may be able to support as we begin to move into the recovery period.”
Gavin Keddie, Publishing Assistant at The Wee Book Company was recruited thanks to the Edinburgh’s Employer Recruitment Incentive
The Wee Book Company, a new publishing business in the city, became aware of Edinburgh’s Employer Recruitment Incentives and as part of the Edinburgh Guarantee offer, employers who recruit someone with barriers to employment can secure up to £6,000 to help with the costs.
With the funding available to them they have been able to create a Publishing Assistant post for Gavin Keddie which he started in March 2021.
Andrew McAllister, Head of Sales at The Wee Book Company, said: “As a small business, the Edinburgh Guarantee has literally made the difference in us being able to give Gavin an opportunity, who has been a revelation. In a matter of only a few weeks he has been really helpful to the development of our publishing business.
“Gavin has come in and we have been really impressed with his commitment, effort and excellent knowledge of modern technology. As a result of being made aware of Gavin’s Aspergers condition, we were able to recognise that he had great talent, but during the interview was a little shy and reserved and was definitely very modest about his previous achievements including the fact that he has been successfully published and written at least five books to date.”
Young business people are discussing together a new startup project. A glowing light bulb as a new idea.
Established in 2011 to address the needs of school leavers who were unable to move into a positive destination following the last economic downturn, the Edinburgh Guarantee has since worked with over 550 employers to get over 3,500 young people into apprenticeships or training opportunities.
Many partners have come together to support this initiative’s continued success including colleges, voluntary sector organisations and national programmes, while also making it easy and rewarding for private sector businesses and organisations to play their part in helping people across the city.
180 posts to include first ever apprentices in onshore wind business
ScottishPower today announced its highest trainee recruitment drive since 2016 as it welcomed COP26 President Alok Sharma to the UK’s largest onshore wind farm on the outskirts of Glasgow.
Today’s announcement will see 180 separate opportunities for young people to join the company’s operations in Scotland, England and Wales. For the first time in the company’s history, apprenticeships in its ScottishPower Renewables’ onshore wind arm are on offer.
A Principal Partner for the United Nations climate change conference (COP26) to be held in the city later this year, ScottishPower is investing £10billion in the UK over five years – £6 million every working day – to double its renewable generation capacity and drive forward decarbonisation.
Its plans include new solar, wind and battery infrastructure, green hydrogen facilities and undertaking the mammoth task of upgrading parts of the country’s energy network to accommodate the expected rapid increase in demand for electricity.
The posts, which range from renewables to networks; procurement and IT, vary from graduate apprenticeships to pre-apprenticeship programmes for school leavers as well as opportunities for those looking to retrain from other industries.
They include:
· Graduates across Engineering, Procurement & IT
· Apprenticeships across Craft & Project Management
· Trainees programmes for Adult Craft & Engineers
· Graduate Apprenticeships
COP26 President Designate Alok Sharma said:“Growing our economy while becoming greener provides fantastic opportunities and I am pleased to see ScottishPower, a Principal Partner of COP26, will be adding so many new green jobs to its current workforce.
“As we move towards our net zero 2050 target, it shows we don’t need to choose between cleaning up our environment and growing our economy. I look forward to continuing to work with ScottishPower and others as we move towards COP26.”
Keith Anderson, Chief Executive of ScottishPower, said:“Roles like these will sit at the very heart of delivering the UK’s net zero ambition as well as the wider green economic recovery. With COP26 coming to the UK this year, there couldn’t be a better time to join us and be part of the green industrial revolution.
“Increasingly people want to work for an organisation that shares their values and strives towards a clear and common purpose they can get behind. Everything we do at ScottishPower is about helping tackle the climate emergency and build a better future, quicker for everyone. It’s a big challenge, but it also makes ScottishPower a hugely inspiring place to work with opportunities to innovate and challenge yourself at every turn.”
Sheila Duncan, ScottishPower HR Director, added:“There are so many opportunities within an energy company that people might not think of, from project managers to quantity surveyors.
“They all share one thing in common, and that’s helping us play our part in decarbonising the UK’s energy. Whether someone is starting out on their career or looking to retrain from elsewhere, there’s never been a more exciting time to join us.”
ScottishPower is one of the largest employers in Scotland and currently has around 5,500 staff at sites across the UK, including 1650 at its Glasgow-based HQ. is the first integrated energy company in the UK to switch to 100% clean energy generation and produces all its electricity from offshore and onshore wind.
Earlier this year, ScottishPower signed up to the new Young Person’s Guarantee and committed to furthering opportunities for young people and those from disadvantaged backgrounds around the UK. This includes grassroots pre-employment schemes in local communities for young people in and around Glasgow.
It is a Principal Partner for the COP26 conference and is developing an energy model that will play a significant role in reaching the UK’s world-leading climate change targets.
ALDI RECRUITING 20 COLLEAGUES IN THE EDINBURGH AREA
Aldi, the UK’s 5th largest supermarket, is recruiting new colleagues to work in its Dalkeith and Hermiston Gate stores opening in September 2021, as a result of its continued popularity and growth across Scotland.
In a welcome boost to the Scottish economy, and to support its expansion in the area, Aldi is looking for 20 Store Assistants across Edinburgh, with training for the role starting in June.
Aldi is a multi-award-winning employer that offers one of the best working environments and competitive benefits packages in the UK supermarket sector, with the majority of Aldi colleagues now receiving a minimum rate of £9.55 per hour, rising to £10.57.
Aldi also creates opportunities for colleagues to develop and progress and has flexible contracts available, as well as healthcare and lifestyle perks for all.
Here, Aldi colleagues give insider tips on how to land a role with the supermarket:
Visit the store before your interview
Deputy Store Manager, Jim Sandhu says: “I’d suggest visiting your local store to watch the team and its daily running. This type of exercise can help candidates demonstrate their knowledge of the store, and display a sound understanding of how it operates. When applying for my role, I had a chat with the Store Manager, who kindly gave me some of their time. This put me in a very strong position in the interview as I was able to speak knowledgeably about how a store operates and identify some of the main challenges a Deputy Store Manager would face.”
Do some desk research
Kelly Stokes, Recruitment Director at Aldi, says: “We always want to see that applicants have done their homework, as that shows how invested an individual is in joining the business. We are currently in an ambitious growth period and are constantly on the lookout for people who are hungry to learn more about us and our ways of working. Candidates who put extra effort in when doing their research put themselves in a great position to start their application and their new career with Aldi.”
Show enthusiasm
Store Manager, Jade Shallow says: “You have to display a willingness to work hard, to be passionate and to be committed to the role. If you can clearly showcase those three areas, then you’re not only going to show that you want to give your best at Aldi, but you’ll also be in a strong position to get noticed by the hiring manager in the first place.”
About the roles available:
Job title: Store Assistant
Salary: £9.55 per hour rising to £10.57
Job description: Hardworking and enthusiastic candidates are being targeted for Aldi’s Store Assistant positions, carrying out responsibilities such as accurate and efficient till operation, stock management and merchandising.
Full training will be provided for Store Assistants over a six-week period and roles are available from 15 to 30 hours a week, with a realistic prospect of progression.
Richard Holloway, Regional Managing Director at Aldi, said: “We are really excited about the vacancies that have arisen across the Edinburgh area, as Aldi’s increased popularity and customer demand for quality products has allowed us to continue with our ambitious growth plan, and create further employment opportunities across Scotland.”
“Working at Aldi means more than just having a job; we really care about our colleagues, both personally and professionally. On top of our fantastic benefits, such as the competitive pay and benefits package, Aldi continues to offer a great working environment and real opportunities to progress within the business.
“We take immense pride in supporting the career development of all our colleagues and invest time and resource in them, in order to keep everyone motivated, fully engaged, continuously challenged and importantly, happy.”
Applications and more information on all of Aldi’s store positions can be found on Aldi’s recruitment website: www.aldirecruitment.co.uk/stores.
Nine out of 63 cities and large towns have recovered to their pre-pandemic level of job postings, with the North and Midlands outperforming the South and South East
Barnsley, Mansfield and Stoke recorded strongest job posting recovery to date; Aberdeen, Belfast and Crawley experienced the weakest
Areas with high claimant counts and slow recovery in job opportunities in greatest need of policy support, according to new research by global job site Indeed and the Centre for Cities
Britain’s resurgent jobs market is being led by cities and towns in the North and Midlands, according to new research by global job site Indeed and the Centre for Cities think tank.
Hiring gathered pace after the UK Government’s reopening roadmap was announced on 22 February but new analysis shows job growth is unevenly spread across the country.
Indeed and the Centre for Cities analysed job vacancies in 63 cities and large towns and found that in some parts of the country job postings now exceed their pre-pandemic level with those in the North and Midlands having so far witnessed the strongest recovery in job postings.
In total, nine cities or towns – led byBarnsley (+21%), Mansfield (20%) and Stoke (17%) – now have more job postings than before the pandemic started.
In contrast, Aberdeen (-53%), Belfast (-39%) and Crawley (-39%) are the three places where job postings have recovered the least, together with other cities and large towns predominantly in the South East of England.
London too is among the places with the slowest recovery: job postings in the capital are still 26% below their level before the pandemic, making it the 11th city with the slowest recovery.
Pace of job posting recovery varies
The improving jobs landscape in the North and Midlands is partly driven by the mix of available jobs.
Recoveries have been strongest in areas with a greater pre-pandemic share of postings in occupations related to the production and distribution of goods, such as manufacturing, driving and loading & stocking, as well as essential services like healthcare, social care and education.
On the other hand, places with a higher share of pre-pandemic job opportunities in food & beverage service and hospitality & tourism are lagging behind.
Production and distribution hubs lead job postings recovery
New analysis of claimant counts and job vacancies points to which jobs markets were hardest hit by Covid-19 and might take longest to return to their February 2020 level.
Places with high claimant count and low job postings include Brighton, Crawley, Slough as well as London in the south and Blackpool and Manchester in the north. These cities and large towns — which have a dependency on tourism and bustling workplaces — are the hardest hit by the pandemic as recruitment activity is lagging and more people are looking for jobs.
In contrast, places with low claimant count rates and whose job postings have mostly recovered to their pre-pandemic level – such as Mansfield, Swansea and Warrington – appeared to have been relatively sheltered from the economic impact of Covid-19.
Pawel Adrjan, head of EMEA research at the global job site Indeed, comments:“As hiring activity picks up across the country it’s clear there is a two-step jobs recovery underway in Britain.
“Cities and towns in the North and Midlands that have been buoyed by rising manufacturing, distribution, healthcare and education jobs but at the same time areas reliant on hospitality, tourism and higher paying jobs that can be performed from home have seen only sluggish growth.
“Just nine urban areas out of 63 have back above their pre-pandemic level and while the partial reopening of the economy earlier this month rode to the rescue of many businesses and workers our research shows that it alone was not enough to lift ailing area’s jobs levels significantly.
“We’ve seen how quickly the jobs market reacts to policy and public health announcements and policy makers will hope the eventual unwinding of Covid-19 restrictions will help level up the jobs recovery.”
Elena Magrini, senior analyst at the Centre for Cities, said:“Not everywhere is seeing yet the beginnings of post-pandemic recovery. Places reliant on tourism, aviation and office workers have been particularly hard hit and still have high shares of people who are unemployed or on furlough.
“Despite this, we have reasons to be optimistic, particularly given the pace of the recovery in the North and Midlands. Once we have reopened the economy, policy makers need to focus on building back better – growing the economy by creating better paid, higher skilled jobs for people right across the country.”
The latest jobs indicator released by Internet Association shows a large increase in the number of full time and part time job postings online as the UK economy continues its recovery from the Coronavirus pandemic.
The new data shows that over 250,000 full-time jobs were posted online in March 2021 – a 112 percent increase on March 2020. That figure also represents a 21 percent increase since February 2021, following a 5.9 percent rise since January 2021 – pointing to accelerating growth in the full-time jobs market.
There is also encouraging news for part-time work revealed by the new data. While January 2021 saw a 10 percent decrease in part-time online job postings, February 2021 saw a 12.2 percent increase, and March 2021 saw a 4 percent increase.
The positive increase points to the likely preparation ahead of the recent reopening of non-essential retail, hospitality and other sectors that are reliant on part-time work.
Key findings from IA’s ‘Industry Indicators: Jobs (3i Jobs) Q1 2021 Report’:
The number of full time jobs being posted online are at their highest for over a year. And despite the sharp fall during the height of the pandemic, the number of postings online in March 2021 is 112 percent higher than March 2020.
The part-time job market is beginning to recover – albeit slower than the full-time market. March 2021 saw a 4 percent increase in online job postings, following a 12.2 percent increase in February 2021. The number of jobs posted in March 2021 also represents a 37 percent increase on March 2020.
A fifth of UK adults (21 percent) now use the internet to earn money online – with the most common amounts being around £10-20 per month, through to over £100 a month. This rate has remained stable throughout the year, suggesting that people are beginning to use the increased flexibility of home working to earn additional income online.
The top postings for full time positions in March 2021 were Sales Assistant, Retail Sales Associates and Client Advisors. The top postings for part time positions were Crew Members, Cashiers and Sales Advisors – again pointing to the big employment boost expected from the reopening of retail last week.
The new data, part of IA’s ‘3i Report’ series, presents monthly insights on the UK job market using data from national and internet-based resources.
The report tracks month to month trends in the online job market and presents unique information on hiring, openings and an online income tracker that identifies the amount of additional income being made by people online through, for example, selling products on platforms like Etsy or Ebay.
The tracker shows that over a fifth of UK adults are using the internet to earn money online, with 9 percent of those earning more than £100 a month online.
The report also highlights how the internet is a vital tool to help people find work and create income in a variety of ways – with the latest update a cause for optimism for the UK full-time and part time jobs market.
It shows rapid growth in online job postings after a difficult period during the height of the coronavirus pandemic, and a stabilising rate of people earning money online.
The Night Time Industries Association (NTIA) is warning of an impending unemployment tsunami, with up to 24,000 jobs thought to be at risk within weeks, as a majority of struggling night-time economy businesses have now run out of cash to pay furlough contributions and fixed costs.
The Scottish Government released the latest Strategic Framework update on Friday, which confirmed businesses will be subject to the commercially unviable levels system of restrictions for many months longer despite all financial support being withdrawn by the end of April.
Worse still, there is no commitment or target date for the return to commercially viable trading for businesses in the sector, which is only possible when social distancing and all other legal restrictions end.
A survey this month of NTIA members confirmed the perilous state the sector is now in, with average Covid related debt reaching a wholly unsustainable £150,000 or more per premises, and businesses facing an imminent cash flow crunch.
The survey also confirmed that less than a quarter of premises have licensed outdoor areas, the vast majority are many months behind on rent or mortgage payments, fewer than a third have been able to trade viably at any point in the last year, and almost all cannot reopen or trade viably while social distancing remains.
These businesses have now exhausted financial resources. Cash reserves have been depleted, more borrowing is now impossible with no guaranteed opening dates and businesses are rapidly running out of cash to pay their fixed costs and furlough contributions.
Business insolvencies and mass job losses are now inevitable within weeks unless the Scottish Government acts urgently. The NTIA wrote to First Minister Nicola Sturgeon earlier this month highlighting the issues and requesting immediate crisis talks.
It is beyond disappointing that as yet we have had no response whatsoever.
NTIA Spokesman Gavin Stevenson said: “Our members have done the right thing, closed their previously successful businesses for the sake of public health, and gone deep into debt paying the enormous fixed costs and furlough contributions to keep staff employed for over a year now.
“We were the first to close and will be last to open. No sector has suffered more. But Government have consistently taken our sector for granted and refused to engage meaningfully with our representatives.
“Many of our members have been closed for over a year now, and virtually all have suffered crippling financial losses. In short, the money going out every month has been far greater than the money coming in, and government support has typically covered less than a quarter of this deficit.
“To add insult to injury government support has now ended while there is no end date to forced closure and other restrictions. Scottish Government now only has two options, provide substantial and immediate additional support for as long as it is mandated that our businesses stay closed and/or operate under the restrictions that make them unviable, or provide a clear route map with target dates for the end of all legal restrictions on capacity, activity, and opening hours.
“If neither of those options are forthcoming then our First Minister is, in effect, asking thousands of small Scottish business owners to bankrupt themselves.”
First Minister Nicola Sturgeon will make a statement this afternoon. She is expected to confirm the latest easing of restrictions will take place next Monday (26 April) and will include the reopening of hospitality, gyms and non-essential shops.
A new UK government-backed loan scheme has launched to provide additional finance to those businesses that need it.
new loan scheme will provide further support to protect businesses and jobs
loans will include 80% government guarantee and interest rate cap
government has backed £75 billion of loans to date as part of unprecedented £350 billion wider support package
The Recovery Loan Scheme will ensure businesses continue to benefit from Government-guaranteed finance throughout 2021.
With non-essential retail and outdoor hospitality reopening next week, Ministers have ensured that appropriate support is still available to businesses to protect jobs. From today, businesses – ranging from coffee shops and restaurants, to hairdressers and gyms – and can access loans varying in size from £25,000, up to a maximum of £10 million. Invoice and asset finance is available from £1,000.
The Chancellor of the Exchequer, Rishi Sunak, said: “We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved we have ensured that our support continues to meet businesses needs.
“As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”
This is in addition to furlough being extended until 30 September, and the New Restart Grants scheme launched last week, providing funding of up to £18,000 to eligible businesses.
The UK Government is also supplementing this with the Plan for Jobs, focused on protecting, supporting and creating jobs across the country through the Kickstart scheme, T-level and a National Careers Service.
The scheme, which was announced at budget and runs until 31 December 2021, will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders.
26 lenders have already been accredited for day one of the scheme, with more to come shortly, and the government will provide an 80% guarantee for all loans. Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases, and Ministers are urging lenders to ensure they keep rates down to help protect jobs.
The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme – put into place last year.
So far, the government’s emergency loan schemes have supported more than £75 billion of finance for 1.6 million British businesses and this new scheme will build on that success. This is part of the government’s unprecedented £350 billion support package which has included paying millions of workers’ wages through the furlough scheme and generous grants and tax deferrals.
Business Secretary Kwasi Kwarteng said: “We’re doing everything we can to back businesses as we carefully reopen our economy and recover our way of life.
“The launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead, protect jobs and prepare for a safe reopening as we build back better from the pandemic.”
Reactions from business groups:
Rain Newton-Smith, CBI Chief Economist, said: “The coronavirus loan schemes have provided a critical lifeline to businesses, and so its successor – the new Recovery Loan scheme – comes as a huge relief to firms.
“These loans can be taken alongside existing COVID loans to help firms refinance, restructure and go for growth.
“It’s vital support remains as restrictions relax and demand returns to normal, allowing businesses to recover, save jobs, and support for reopening.”
Commenting on the Recovery Loan scheme, Suren Thiru, Head of Economics at the BCC, said: Accessing finance remains crucial to the lifeblood of a business and so the launch of the Recovery Loan scheme is welcome.
“The new scheme can play a potentially pivotal role in supporting the recovery by getting credit flowing to the firms who most need it.
“Chambers of Commerce will continue to work with government and the banks to ensure that businesses have the clarity they need to enable them to use the new scheme to help them return to growth.”
David Postings, Chief Executive of UK Finance, said: The banking and finance industry remains committed to supporting businesses of all sizes through the next phase of the pandemic response.
“As focus turns to economic recovery, we know that many firms are still facing uncertainty. The new Recovery Loan Scheme, alongside other commercial financial support, will help firms rebuild and invest for future growth.”
New research from Yolt, the award-winning smart money app, reveals that almost 20 million UK adults have experienced a financial shock, such as a pay decrease, job loss or a drastic change in financial situation, since the beginning of the pandemic.
Those who have had to deal with a financial shock saw their income decrease by over £530 per month on average – which almost equates to one full week of spending for the average family in the UK, according to the Office for National Statistics (ONS). Despite this, over half (51%) of UK consumers revealed they have not taken steps to protect themselves against a sudden change in income, or a shift in their finances that would mean they couldn’t cover their usual outgoings.
The research found that in many cases (19%) people had seen their income decrease and one in ten (11%) have been furloughed during the pandemic. In responses to these shocks, over a third (34%) have dipped into their savings and a quarter have turned to credit card spending (26%). One in five people who experienced a financial shock (20%) tried to raise money by selling things online and one in seven (16%) borrowed money from their family.
Experiencing a financial shock makespeople much more likely to put precautions in place in the future, as three out of four (74%) who had previously experienced a financial shock have taken action – compared to a third (33%) who hadn’t faced a shock.
Amongst all UK adults, these preventative steps included, reviewing theirmonthly outgoingstosee where cutbackscanbe made (23%), putting money aside in a rainy day fund (15%) and a focused approach to paying off debts (12%) to help ease financial pressure.
In fact, one in four of Brits (25%) said that the pandemic has made them finally look totackle their debt – as evidenced by recent data from the Bank of England which found that UK households repaid a total of £16.6bn on credit cards and loans in 20205.
Financial uncertainty continues to fuel consumer anxiety in the UK. Almost two out of five UK adults (38%) are extremely worried about their financial future and half (54%) want to protect their family financially more now, than ever before.
PaulinevanBrakel,ChiefProductOfficeratYolt,said:“Our research shows that the impact of the pandemic on people’s finances has been far reaching.
“There is no uniform financial experience or response tothe current economic climate and we’re unfortunately seeing a widening wealth gap, with some people able to save during this period, as the opportunity to spend has declined, and other people unfortunately having suffered a significant reduction in income at an average cost of £538 per month.
“With the UK still experiencing great levels of uncertainty there could be further financial shocks on the horizon for many – especially with government support schemes such as furlough due to come to an end in the coming months.
It’s no doubt a challenging time for all but engaging with your finances and looking to see where you could make cutbacks to save even a small financial cushion can be a lifeline if you do experience a financial shock.
“At Yolt, our recently launched evolution of the app is designed to help you manage your finances and take the hassle out of saving – by helping people save while they spend and making creating savings habits easier.”
