Once one of the cornerstones of any UK high street after 200 years though its place here is looking shaky and in a bid to buy a bit of time debt enhams is putting itself into administration beleaguered bosses are in damage limitation mode saying it’s simply a move to avoid suppliers pushing them into insolvency.
while coronavirus closes its doors but this is the second time in 12 month administrators have been called in of course Debenhams has been struggling for some time but its problems are now been repeated across the business world as companies are suddenly finding no cash coming in and that squeeze is likely to continue.
Impact After corona pandemic ?
Just today new data revealed that consumer confidence has been hit by the biggest fall since records began and that’s just the latest evidence of a dramatic collapse of economic activity not seen in almost a century one estimate today suggests a lockdown has cut economic output by an extraordinary 31 percent that means it’s costing us all 2.4 billion pounds a day.
What kind of impact will come on hotel and Restaurant after corona pandemic ?
Among the area’s hardest hit hotels and restaurants down a hundred and seventy two million pounds Manufacturing down by five hundred million pounds and non-food shops down by one hundred and fifty six million but earnings won’t simply start whenever they shot down NSA analysts we certainly can’t assume that on day one after the log down restrictions are eased the things are going to bounce ,right back up to the pre lockdown level and that we’re immediately in a matter of months going to make up for all this lost output certainly some businesses are going to see a pickup in activity as the restrictions are eased but for other ones this they are really losing output which they will arguably never never get back the drip feed of bad news from industry after industry is speeding up March is traditionally the best month of the year for car sales last month the were down 45 percent compared to last year.
Who will going to more suffer ?
Even before the door shut many customers were staying at home many more afraid of getting themselves into increased debt March sales fell to the lowest level in more than two decades and with production forecast down 23% there’s no bounce-back in sight the slowdown may be almost universal but the pain isn’t shared out equally according to new research by the Institute for Fiscal Studies women younger workers and low.
Earners are particularly vulnerable because they are more likely to work in areas like retail and leisure the IFS found that women are 1/3 more likely to work in an affected sector than men workers under 25 a two and a half times more likely to be hit than other employees and low earners seven times more likely than high earners to work in a shuttered business the longer this drags on they warn the longer the recovery long-run impacts can come because people lose their job now.
And it takes them a while to get back into work they may get back into work on lower wages and they otherwise would have would have had and then they already have been on relatively low wages if you spend some time out of a labor market particularly for young people that may have quite a long term effect on their income so if it’s already.
Those who are the less well-paid who are affected they may be less well-paid for a longer period for some firms that were limping by before coronavirus has forced their hand Laura Ashley calling in the administrators last month many others are still struggling on but the question is which names will survive and which names will disappear differently well obviously this is an unprecedented crisis it was going to be challenging for any governments to put the relevant provisions into place I have to say that you know I’m pleased in some areas that the government has acted in some cases it did take some time to put those measures in place and I suppose that’s the first place that I would start if we look at the furlough scheme for example that scheme which backfills people’s.
What kinds of effect on the salary of employees and Economy also ?
Salaries up to 80 percent to uncap now that scheme is absolutely critical for keeping people in work because as we’ve just heard from the moment that somebody leaves work and becomes unemployed that can’t be catastrophic for their income but it’s also very very bad for the economy as well.
Now it took quite some time for that scheme to be put into place and for a government to actually talk to the trade unions and to businesses about that scheme at least it’s in place.
Now but we really need to make sure that as many employers as possible participate in that scheme is absolutely critical that they retain that amount of employment if at all possible now one of the things that may have put off some employers from using it of course is the fact that it doesn’t cover all of their fixed costs.
Micro salaries but it doesn’t necessarily cover you know the relic trustee bills rent excedrin oh that means that the loan scheme that government put in place is absolutely critical you know initially there were problems with that we pointed those out some changes have been made but we really need to ensure that the banks areactually getting that money out of the door because it is going to be the government itself has been saying but when it comes to some of the big-ticket items.
What about railways ?
You know virtually nationalizing the railways guaranteeing 80 percent of salaries I mean these are the kind of things that Jeremy Corbyn was dreaming of doing you know in his most socialist dreams if you like and and now they’re actually happening under a Tory government so has really soon I can away made your job redundant well as I said with furlough scheme with the 80 percent wage guarantee.
while I absolutely welcome it and it’s necessary you know we were calling for that for quite some time before government began discussions with paid unions and with businesses about putting in place now I accept it was a challenge to get it into place but we can have that kind of delay in the future you know again it took quite some time for the package for self-employed people to be put into a put into place I accept that’s difficult but actually we’ve now got quite large numbers of people who for the time to access social security because none of these schemes cover them and when they try and do so as you know they’ve got to wait for a very very long time before they get anything and all they get after two weeks is alone okay we would not be adopting that approach we think that Lauren’s got to be switched into a grin otherwise we’re going to have even more extreme levels of pain.
URI briefly and finally who do you think should pay for the enormous amounts of money that had been borrowed here well you know we’re told sits currently so many people are sacrificing a huge amount because of this crisis and that’s absolutely right but us was just mentioned in your program actually the impact of all of this is falling very very unequally we need to make sure in the future that it’s those with the broadest shoulders who are actually contributing to our recovery where they can that’s going to be really critical as we go forward particularly when so many people will have some little income and then they stick out you saw we’re gonna have to leave it there thank you.