Monthly Archives: February 2021

High Street Recovery News

Posted on February 28, 2021 at 11:08 am

It is being said that next month an announcement on a High Street COVID recovery fund will be announced by chancellor Rishi Sunak who wants to “get the tills ringing again” for high street businesses. It is being said that this grant scheme entails a total £5bn going into shops and pubs that could be worth up to £18,000 for a single business. Around 700,000 businesses will be eligible for this grant but many believe this amount just doesn’t go far enough.

The Institute of Public Policy Research has said this proposed amount is only worth about 2% of the value of the entire UK economy pre-pandemic. Because of this, some are suggesting a more robust amount of £190bn, which would be equivalent to 8.6% of the value of the UK economy, would deliver a much faster recovery and stimulate business investment back to its pre-pandemic level. It is felt this could be done without the risk of creating high UK inflation and also halve the number of job losses. That amount is quadruple, of the currently proposed amount of spend.

Many are still unsure if this proposed grant is an extension to the support already offered and set to expire at the end of March, or reinforcement, post-fiscal year end. The Confederation of British Industry (CBI) have outlined areas for Rishi Sunak to focus on in next week’s budget announcement to help businesses post-lockdown, such as focusing on investment into key areas like jobs, skills and innovation. CBI represents 190,000 businesses of all sizes and warns that firms that are still in “emergency mode” are speaking out by saying any significant tax increase, in the short-term, will hold back recovery and repress investment and competitiveness.

Chancellor Sunak has expressed the strain on public finances, due to the pandemic and hopes to “level with people about the challenge” and states he remains committed to protecting the British people through this crisis.

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