The UK economy, being a serviced-based economy was hit particularly hard compared to the other G7 nations. It is however also on the path to a potentially faster recovery than many of those same G7 nations, with recently announced schemes by Rishi Sunak, the UK’s Chancellor of the Exchequer playing no small part in what appears to be an impending recovery.
Rex Ekaireb, with decades of experience in the UK business, jewellery and property sectors said of the recovery: “This recovery for the UK economy is unlikely to happen and come to full fruition over the course of a month or two. Much more likely is that the UK will see sector by sector improvements, ultimately benefiting a wide range of sectors. That said, there will be some parts of the UK economy and UK-wide industry that will be slower to recover.”
Rex Ekaireb also commented: “Industries like travel and theatre, which by their very nature require mingling and mixing of people in sometimes very enclosed spaces will take some time to see the recovery that sectors like construction and retail are seeing. But, give it time and they should start to see many of the positive signs others are starting to.”
Some of the key policy announcements by the UK Chancellor, as well as other related departments in the UK government include:
- The Stamp Duty Cut for properties below a value of £500,000
- The popular Eat Out to Help Out Scheme to help restaurants
- The recent freeze on tenant evictions being extended through the winter
Stamp Duty Cut Benefiting UK Property
By applying the holiday and changes to the UK’s Stamp Duty Land Tax, the Chancellor has enabled many thousands of people to get a foot on the property ladder.
Buyers and first-time buyers have been flocking to the property market to purchase properties for potentially many thousands of pounds cheaper. For first-time buyers, who will already be feeling the punch, having to save significant sums of money for their deposit, this policy provides some much-needed breathing space.
It also encourages many who may have been dithering on property purchases of any size, to move forward with property transactions, helping the sector and those working withing it including estate agents, valuers, tradespeople and many more.
Rex Ekaireb commented on the Stamp Duty cut: “This move has certainly helped the UK’s usually bustling property sector. With cuts to the Stamp Duty Land Tax, more people will be able to get onto the property ladder and for others, this will provide significant savings when undertaking property purchases.”
Ekaireb also said of the move: “The government needed to be bold and they have been just that with this move. They need more money in the economy to power the UK’s recovery and this is certainly one way of doing just that, which is encouraging to see.”
Each Out to Help Out Scheme Satisfying Diners
The Eat Out to Help Out scheme for the UK hospitality and restaurant sectors has led to over 10 million subsidised restaurant meals within the first two weeks alone. The scheme which pays for up to £10 per person per meal was brought in by the Chancellor to encourage people back into restaurants, amidst uncertainty amongst UK diners.
The scheme has arguably been the most successful of all of the measures with restaurants and eateries reporting huge surges in footfall and orders as well as diners reporting increased confidence to return to the restaurants they so love.
With the scheme only running until the end of August, critics of the scheme has posed the question whether footfall will greatly recede once the scheme is over or whether it will remain high or at least at improved levels.
Economic Improvements on the Horizon
Although it is no secret that the UK and its economy face difficult times in the coming months and potentially years, some industries have been and remain harder hit that others. Whilst industries such as travel and hospitality have been hit extremely hard, others like recruitment and even some private banking roles have been hit, albeit to a lesser extent (source: Redstone Private Banking Headhunters.) It will take time for the UK’s economy and various services and industries to recover, but the signs are certainly positive.
With the UK’s furlough scheme as well as the Eat Out to Help Out and others winding down in the coming months, the UK faces unchartered waters ahead.