Now that the UK is officially in a recession, focus has to be placed on recovery. The government has taken several steps to ensure the economy can kickstart now that the lockdown is ending.
Here, we’ll look at some of the steps necessary for economic recovery in the UK.
Support provided to businesses
The government has provided an unprecedented level of support to businesses during this time. Tax relief, cash grants and loans have all been made available to ensure the economic impact is minimal.
During the lockdown, employers were able to furlough their staff and gain 80% of their salary from the government. Self-employed people were also given grants up to 80% of their salary for three months. Businesses which do need financial help should take advantage of the support available.
However, not all businesses have been able to get the financial help they need. Various loopholes have meant that thousands of businesses have been left unprotected. In these cases, alternative finance can prove invaluable. Many people have turned to companies such as Nucleus for alternative business funding during the pandemic.
Trade and travel
As part of the lockdown, international flights were grounded, preventing tourists entering the UK. To get the economy back on track, there needs to be a focus on trade and travel.
Opening up the travel sector will bring a lot more spending into the UK. However, the prime minister still has his work cut out to negotiate good trade deals in light of Brexit. With “no deal” still on the table, it could have a significant impact on the economy.
One of the biggest challenges the pandemic has brought is the huge amount of job losses. Millions of people have lost their job due to the coronavirus. This means, in order to get the economy back up and running, additional jobs will need to be created.
There is no getting away from the fact that the UK economy has a long way to go in order to recover. Businesses are going to find it difficult to bounce back quickly due to the sheer amount of losses experienced in the first part of the year.
With the risk of a second wave of the virus later in the year, it may be too soon to say how long it will take the economy to bounce back. These are difficult times, but help is available to businesses that need it.