Thank you, Chancellor, for the new £ 4.6 billion assistance package, so when will the main course serve you? That was the tenor of the response from the business community to the announcement of grants for the retail, hospitality and leisure sectors by Rishi Sunak. You might call the response rude, but the demand for clarification from the business community – and soon – is entirely fair: decisions are being made now about employment and investment for the spring.
If Sunak wants to extend the vacation business rates beyond March or the leave scheme beyond April, he must hurry up and make the announcement. Rishi Sunak unveils £ 4.6 billion UK retail and hospitality relief packageRead moreThe chancellor did not say definitively that until March 3, the Treasury plans to say nothing, but that was his clear hint. “We will present a budget in early March to take stock of our broader support and set out the next stage of our economic response,” he said. The willingness of the Treasury to keep its options open can be appreciated – up to a point. There is little idea of the duration of the current freeze and the vaccine program is still in its infancy. In the U.K. This fiscal year, they will borrow £ 400 billion, so they will feel forced to ensure that any help for the economy is really required. “dead costs,” the Treasury does not want to accumulate, but the delay comes at a price. For several small bars, restaurants or event businesses, the modest grants offered in Tuesday’s steps are unlikely to alter the equation. They would ask, faced with a new freeze, if it is worth holding out until spring, when tax cuts and downsizing assistance could be withdrawn in March and April. Sunak was lauded for moving rapidly at the beginning of the pandemic: the economic strategy was matched with public health initiatives. The same cannot be said for the subsequent actions of the Treasury, most of which were taken at the last minute. On top of the obvious trade risks created by the pandemic, the result is to generate more financial instability for companies. Adam Marshall, Director General of the British Chambers of Commerce, put it well: “The government needs to get away from this “drip” approach and put in place a long-term plan that allows all businesses of all shapes and sizes to plan and ultimately survive.” Based on a “central planning scenario” he then expects income to increase to £ 670 million in the financial year to January 2022, only £ 60 million less than in the last full financial year before the pandemic. Next’s Christmas profit is better than anticipated, helped by online salesRead more Sadly, drawing so many wider lessons from the experience of Next is risky. For instance, the online business of the organization produces about half of its revenue, even in normal times; so in the nine weeks leading up to Christmas, online revenues offset almost all of the sales lost in shops.
But one thing should give hope to all post-vaccine retailers: Next’s credit delinquencies have been tiny, and buyers who have retained their jobs seem inclined to spend when they have the chance. Next’s V-shaped profile would fit few retail recoveries, but most rivals will settle for a V-ish. Is Bitcoin a scam of a tulip bulb – or pure gold? Here’s a bold forecast from a team of analysts at JP Morgan, the Wall Street bank: if investors consider the digital currency an alternative to gold, one unit of Bitcoin, which has already increased fourfold in the past year to more than $30,000, might eventually hit $146,000. On 12th anniversary Bitcoin hits record high