Economy

£100bn boost for the UK economy

The Bank of England will pump an extra £100bn into the UK economy to help fight the economic downturn triggered by the coronavirus pandemic.

Bank policymakers voted 8-1 to increase the size of its bond-buying programme.

The extra monetary stimulus – known as quantitative easing (QE) – will raise the total size of the Bank’s asset purchase programme to £745bn.

The Bank’s Monetary Policy Committee (MPC) also voted to keep interest rates at a record low of 0.1%.

Policymakers said the jobs market was likely to remain weak for some time, with a risk of higher and more persistent unemployment.

Millions of workers have already seen their pay packets shrink as a result of lower pay for furloughed staff.

Commenting on the decision by the Bank of England’s MPC to keep interest rates on hold and expand quantitative easing, Suren Thiru, head of economics at the British Chambers of Commerce (BCC), said: “The Bank of England’s decision to significantly expand quantitative easing reflects the unprecedented impact of coronavirus on the UK economy. It is vital that the bank works with financial institutions to ensure that it translates into on-the-ground support for businesses.

“With economic conditions likely to remain challenging in the near term, further easing remains likely. However, with interest rates already at an historical low, extra loosening of monetary policy is unlikely to provide a significant boost to the economy. The central bank has rightly decided against moving interest rates into the negative, which risks doing more harm than good.

“The focus instead should be on delivering a fiscal environment that limits economic scarring and helps kick-start a recovery. This should include taking steps to close the remaining gaps in government support, including giving businesses with direct incentives to invest and hire, and stimulating consumer demand through a temporary but significant cut in VAT.”

While some businesses have started trading again, others are continuing to take advantage of the government’s furlough scheme to retain staff on their books.

However, a new survey has revealed that some businesses are asking furloughed employees to work, despite this being in direct contravention of the job retention scheme’s rules.

A poll of 2,000 furloughed workers across the UK found that 34% had been asked by their employer to commit furlough fraud by carrying out their normal duties despite their employers claiming from the job retention scheme.

A further 18% said they had been asked to work for another company linked to their employer, and a similar number (19%) were asked to cover someone else’s job within their organisation.

The research by Crossland Employment Solicitors also found that 29% of furloughed workers were asked to undertake more administrative tasks while on the scheme.

Under the rules of the scheme, staff who have been furloughed cannot be asked by their employer to continue to work either for them or a company linked to them. The scheme has been extended until October to help firms hit by the coronavirus pandemic.

Summaries of the new Border Operating Model

- 16 July 2020

The Government has provided two summary documents which outline what businesses will need to prepare for. There is one for exports (https://assets.publishing.service.gov.uk/ government/uploads/system/uploads/ attachment_data/file/901063/How_to_ export_goods_from_GB_into_the_EU_ from_January_2021.pdf) and one for imports (https://assets.publishing.service. gov.uk/government/uploads/system/ uploads/attachment_data/file/901061/ How_to_import_goods_from_the_EU_ into_GB_from_January_2021.pdf)

The Export and International Trade’s summary, flags up the key takeaways from the document. (https://www.export. org.uk/news/516880/Governments-posttransition-border-plan-published-today-13- July-10-things-traders-need-to-know-.htm)

Customs declarations are currently required by HMRC to be completed for all, or the majority of, UK imports and exports, except where the EU single market is concerned.

When the EU exit is completed, it is estimated that the number of annual declarations will rise from the current 55 or 60 million to 260-300 million. This number is irrespective of whether or not there is an EU trade deal (unless the trade deal is an extraordinary one). Companies most affected will be those who when they trade outside the UK only hitherto trade in the EU Single Market.

Currently it is believed that the vast majority of those customs declarations (CD) are completed on behalf of traders by intermediaries such as customs brokers and freight forwarders. There is concern that the market will not be able to cope and there has been a suggestion that the government have raised those concerns with BCC which helped prompt them to investigate a role for CCIs.

British Chamber of Commerce (BCC) has been working on a scheme – ChamberCustoms – which is based on a company backed by i2i/SGS which has developed software and trained staff to gear them to assist UK importers and exporters to complete CD. We will be participating in the scheme and are working on a business plan on how we will roll it out.

Reopening our high streets

Monday 15 June was a big day for the retail sector. After eleven weeks of being unable to open their doors, many high street shops were back in business.

Here in Royal Greenwich we’ve been working hard to help businesses reopen safely. We’ve produced ‘Shop safe’ collateral packs containing things like floor graphics, posters, queueing tape and window clings to reassure shoppers that it’s safe to return to our high streets. The packs were given out at business advice surgeries held in our seven town centres the week of 8 June, and over 600 have been distributed since then.

Cllr Denise Scott-McDonald, Deputy Leader and Cabinet Member for Economy and Skills visited town centres in the borough to build confidence and demonstrate to shoppers the new measures that are in place to keep them safe. Cllr Scott-McDonald said:

“To see our high streets slowly coming back to life after such a long and worrisome time is inspiring. Our local retail economy has had a tough time – and for many the struggle still isn’t over. I spoke to shop keepers and employees on my visits who were both excited and nervous about reopening because of the uncertain economy they’re coming back to. But I am encouraged to see the great effort made by all of them to make sure shopping in the ‘new normal’ will be a safe experience. Business owners are eager to welcome customers back and I would encourage residents now more than ever to support their local shops.

As a borough we have done a lot to support the reopening of our non-essential retail businesses with the money allocated to us from the Reopening High Streets Safely Fund, but we’ve got a long way to go still. The Business Discretionary Grand Fund scheme doesn’t go far enough, and we’ll be lobbying the government for more support.”

Beresford Square Market and our bid for the Future High Streets Fund

It wasn’t just our town centres that resumed business this month; on 8 June 18 market traders returned to Beresford Square Market to join the eight fresh produce and food sellers who remained open during the lockdown. Supported by our Street Trading team, traders can operate as long as they meet the NHS health guidelines and government COVID-19 secure guidelines, to protect both visitors and workers.

Markets in Woolwich are hoping for a further boost with the council’s bid for the Future High Streets Fund. The £675 million central government initiative aims to rejuvenate the UK’s high streets and, although it was launched before the COVID-19 crisis, is arguably now more important than ever. Royal Greenwich is one of 101 boroughs shortlisted to submit a bit and the council has put Woolwich forward to benefit from the fund, should we be successful.

The aims of the bid are to make Woolwich an inviting place for people to locate their businesses, employing people and creating economic opportunity. The bid seeks to do this by investing in buying key buildings and developing new workspace with first class digital infrastructure. A repurposed market and trading area also form part of our proposals. You can read more about the bid, and tell us what you think about it on our website at: www.royalgreenwich.gov.uk/

future-high-streets-fund

Streetspace transformation

The Mayor of London’s Streetspace plan aims to transform London’s streets to accommodate a potential ten-fold increase in cycling, and five-fold increase in walking as lockdown restrictions are eased. We’ve already taken steps to transform the streets of Royal Greenwich and we’ve got plans to do more. Our plans depend on funding allocations from Transport for London (TfL), and include: • widening footpaths in

Greenwich, Eltham and

Woolwich town centres to create space for social distancing

As a borough we have done a lot to support the reopening of our non-essential retail businesses with the money allocated to us from the Reopening High Streets Safely Fund, but we’ve got a long way to go still. The Business Discretionary Grand Fund scheme doesn’t go far enough, and we’ll be lobbying the government for more support.”

strategic cycle routes to help the majority of our residents who don’t own a car to travel while avoiding public transport school streets to support social distancing at the school gate filtering more residential streets to reduce through traffic while maintaining access for cyclists, pedestrians and emergency vehicles, therefore creating low traffic routes and neighbourhoods

We need to avoid a carled recovery and support the significant uptake in cycling and walking. This will not only help tackle the current health emergency, but will encourage active travel, bringing public health benefits, improvements to air quality and carbon emissions in the longer term.