13thOct
News article

Resolution Foundation warns of a 'lost COVID generation'

Think tank the Resolution Foundation has suggested that the coronavirus (COVID-19) has created a 'U-shaped crisis', with young adults and pensioners most likely to have stopped working during the pandemic.

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Think tank the Resolution Foundation has suggested that the coronavirus (COVID-19) has created a 'U-shaped crisis', with young adults and pensioners most likely to have stopped working during the pandemic.

A report by the Foundation revealed that over half of those aged between 18 and 24 and 65 and over who were employed before the COVID-19 pandemic have since stopped working, either by being furloughed or by losing their jobs altogether, compared to fewer than a third of those aged 30 to 50.

The report also showed that the impact of the pandemic on people's living conditions has 'fallen most heavily on young people'.

Commenting on the matter, David Willetts, President of the Resolution Foundation, said: 'The pandemic has already cost tens of thousands of lives, millions of people their livelihoods and upended everyone's daily lives.

'For younger generations, this crisis has created wider problems. The growth of the high-cost, low-security private rental sector has led to missed housing payments and cramped living spaces during lockdown.

'With infections rising again, the COVID crisis is sadly far from over. That means the risk of losing a COVID generation to long-term youth unemployment is real. But there is plenty that policy makers can do to prevent it – from extra training provision to a greater focus on creating new jobs to support people out of this crisis.'

12thOct
News article

Job Support Scheme expanded for local lockdowns

The government's Job Support Scheme (JSS) will be expanded to protect jobs and support businesses required to close their doors due to local lockdowns as the number of coronavirus (COVID-19) cases continues to rise in some areas.

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The government's Job Support Scheme (JSS) will be expanded to protect jobs and support businesses required to close their doors due to local lockdowns as the number of coronavirus (COVID-19) cases continues to rise in some areas.

Under the JSS extension the government will pay two thirds of employees' salaries to protect jobs over the coming months.

Cash grants for businesses required to close as a result of local lockdowns are being increased to up to £3,000 per month. Under the expansion, firms whose premises are legally required to shut for some period over winter as part of a local or national lockdown will receive grants to pay the wages of employees who cannot work.

The government will support eligible businesses by paying two thirds of each employee's salary, up to a maximum of £2,100 a month.

In response to the expansion, Carolyn Fairbairn, Director General of the Confederation of British Industry (CBI), said: 'The steep rise in infections in some areas means new restrictions to curb numbers feel unavoidable.

'The Chancellor's more generous job support for those under strict restrictions should cushion the blow for the most affected and keep more people in work.

'But many firms, including pubs and restaurants, will still be hugely disappointed if they have to close their doors again after doing so much to keep customers and staff safe.'

9thOct
News article

Government to proceed with plans to create freeports across UK

The government has confirmed that it will create new freeports across the UK in 2021.

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The government has confirmed that it will create new freeports across the UK in 2021.

The Treasury has outlined the next steps for the creation of freeports, which it hopes will drive investment and create jobs after the end of the Brexit transition period.

Sea, air and rail ports in England will be invited to bid for freeport status before the end of 2020, the Treasury said. Freeports will benefit from streamlined planning processes to aid brownfield redevelopment; a package of tax reliefs to help drive jobs, growth and innovation; and simplified customs procedures and duty suspensions on goods.

The government is working with the devolved administrations to seek to establish at least one freeport in each nation of the UK.

'Our new freeports will create national hubs for trade, innovation and commerce, regenerating communities across the UK and supporting jobs,' said Chancellor Rishi Sunak.

'They will attract investment from around the world as we embrace new opportunities following our departure from the EU and will be key drivers for economic recovery as we build back better post-coronavirus.'

The first freeports are set to be open by the end of 2021.

8thOct
News article

NAO warns loan scheme could result in £26 billion in losses

The National Audit Office (NAO) has warned the government that it faces a potential loss of £15 billion to £26 billion as a result of criminals taking advantage of the coronavirus (COVID-19) Bounce Back Loan Scheme (BBLS).

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The National Audit Office (NAO) has warned the government that it faces a potential loss of £15 billion to £26 billion as a result of criminals taking advantage of the coronavirus (COVID-19) Bounce Back Loan Scheme (BBLS).

The BBLS was announced on 27 April 2020 and is designed to quickly provide loans of up to £50,000, or a maximum of 25% of annual turnover, to small businesses to support their financial health during the COVID-19 pandemic.

Over the coming months, the extent of losses due to fraud will become clearer, the NAO said, but the full extent of losses, both credit and fraud, will not emerge until BBLS loans are due to start being repaid from 4 May 2021.

When compared to other COVID-19 support schemes, the BBLS has less strict eligibility criteria in place, the NAO said. It stated that the lower level of checks presents credit risks as it increases the likelihood that loans are made to businesses which will not be able to repay them.

Commenting on the issue, Gareth Davies, Head of the NAO, said: 'With concerns that many small businesses might run out of money as a result of the COVID-19 pandemic, government acted decisively to get cash into their hands as quickly as possible.

'Unfortunately, the cost to the taxpayer has the potential to be very high, if the estimated losses turn out to be correct.

'Government will need to ensure that robust debt collection and fraud investigation arrangements are in place to minimise the impact of these potential losses to the public purse.'

7thOct
News article

Survey finds business conditions remained weak in third quarter of 2020

A survey carried out by the British Chambers of Commerce (BCC) has found that, despite the UK economy reopening, business conditions 'remained weak' in the third quarter of 2020.

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A survey carried out by the British Chambers of Commerce (BCC) has found that, despite the UK economy reopening, business conditions 'remained weak' in the third quarter of 2020.

Almost half of UK firms reported a decrease in domestic sales, whilst just 27% reported an increase in domestic sales.

47% of businesses reported a decrease in export sales, and 24% reported an increase in export sales.

The balance of firms in the services sector reporting increased domestic sales rose to -25% in the third quarter of 2020, up from -64% in the second quarter. Meanwhile, in the manufacturing sector, the balance of firms reporting increased domestic sales rose to -15% in the third quarter of 2020, up from -59% in the second quarter.

'Our latest survey indicates that underlying economic conditions remained exceptionally weak in the third quarter,' said Suren Thiru, Head of Economics at the BCC.

'While the declines in indicators of activity slowed as the UK economy gradually reopened, they remain well short of pre-pandemic levels, with little sign of a swift 'V'-shaped recovery.'

6thOct
News article

Coronavirus permanently changes working patterns

Most office workers will not return to their workplaces five days a week even after the coronavirus (COVID-19) pandemic is over, according to a survey carried out by the British Council for Offices (BCO).

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Most office workers will not return to their workplaces five days a week even after the coronavirus (COVID-19) pandemic is over, according to a survey carried out by the British Council for Offices (BCO).

The survey of 2,000 office workers found that employers and employees alike see home working as a long-term measure, as the pandemic has changed working patterns.

Employees at all levels, from executives to trainees, intend or hope to divide their time in future between their homes and their workplaces, according to the survey.

Over 60% of senior executives and 58% of entry-level workers want to alternate, the BCO found.

Commenting on the findings, Richard Kauntze, Chief Executive of the BCO, said: 'We are never going to go back to how things were before.

'The idea that people will return to the five-day week in the office has gone, and I think a much more blended approach is likely, two or three days in the office and two or three at home or wherever is going to be a much more typical pattern.

'Most people will value being able to work on that basis.'

5thOct
News article

Retirement plans altered by pandemic

The COVID-19 pandemic has changed the retirement plans of one in eight older workers, according to research by the Institute for Fiscal Studies (IFS).

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The COVID-19 pandemic has changed the retirement plans of one in eight older workers, according to research by the Institute for Fiscal Studies (IFS).

The think tank's study was based on a survey of data from the English Longitudinal Study of Ageing (ELSA) COVID-19 survey covering some 10,000 people aged 50 and over.

The findings show 13% of older workers have already changed their planned retirement age due to the coronavirus pandemic.

Over half of those are now planning to retire later than they had previously intended. This is largely due to pension funds that have fallen in value or the ability to work from home.

Almost a third of older workers report that their financial situation has worsened because of the crisis.

Commenting on the survey, Rowena Crawford, Associate Director at the IFS, said: 'The current pandemic risks having serious and long-term financial consequences for older workers, affecting living standards into and through retirement.

'The crisis has also been disruptive to major life plans, with one in eight older workers so far changing the age at which they planned to retire.

'Those on furlough are now more likely than those working to be planning to retire earlier and it will be important to monitor that this does not represent a rise in involuntary retirement among people discouraged from finding new work.

'On a positive note, those working from home are now more likely to be planning to retire later; suggesting changes to work practices could benefit some older workers.'

2ndOct
News article

British Business Bank warns of fraud risks with coronavirus business loans

The British Business Bank has warned of 'significant fraud risks' with coronavirus (COVID-19) business loans.

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The British Business Bank has warned of 'significant fraud risks' with coronavirus (COVID-19) business loans.

The Bank recently published a letter to the Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma, outlining concerns in regard to fraud and the COVID-19 Bounce Back Loan Scheme (BBLS). The BBLS enables small and medium-sized businesses affected by COVID-19 to access finance more quickly.

The British Business Bank previously warned ministers that COVID-19 business loans could be subject to fraud.

Commenting on the issue, Keith Morgan, CEO of the British Business Bank, said: 'The scheme is vulnerable to abuse by individuals and by participants in ogranised crime.

'Alongside the fraud risk, there will be considerable credit risk in the current economic environment, which will be exacerbated by removing significant elements of the credit checks that would otherwise have been undertaken.'

A government spokesperson stated: 'We've looked to minimise fraud, with lenders implementing a range of protections including anti-money laundering and customer checks, as well as transaction monitoring controls.

'Any fraudulent applications can be criminally prosecuted, for which penalties include imprisonment or a fine, or both.'

1stOct
News article

Benefits-in-kind regime 'not fit for purpose', says ICAEW

The Institute of Chartered Accountants in England and Wales (ICAEW) has suggested that the current benefits-in-kind (BiK) system is 'not fit for purpose' for a post-coronavirus (COVID-19) world.

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The Institute of Chartered Accountants in England and Wales (ICAEW) has suggested that the current benefits-in-kind (BiK) system is 'not fit for purpose' for a post-coronavirus (COVID-19) world.

Taking into account the 'new normal', the ICAEW said that the BiK tax legislation is no longer fit for purpose 'in light of the likely increase in employees working from home'.

It stated that responsible employers are likely to permit their employees to choose whether they work from home or in the office, and recommended that employee choice should not be detrimental to the deductibility of expenses incurred by homeworkers.

The ICAEW's Tax Faculty has submitted a series of recommendations to HMRC, outlining improvements to the employee BiK and expenses regime in light of the COVID-19 pandemic.

The Institute stated that the BiK regime needs to 'adapt to accommodate changes in working practices arising from the COVID-19 lockdown', including the introduction of social distancing measures.

Further information can be found here.

30thSep
News article

Criminals exploiting coronavirus pandemic, trade association warns

UK Finance is warning that criminals have been exploiting and adapting to the coronavirus (COVID-19) pandemic, with a growth in fraud and scams that target people online.

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UK Finance is warning that criminals have been exploiting and adapting to the coronavirus (COVID-19) pandemic, with a growth in fraud and scams that target people online.

The trade association's research revealed that unauthorised fraud fell by 8% to £374.3 million in the first half of 2020 as the banking industry prevented £853 million worth of losses.

The amount lost to Authorised Push Payment (APP) fraud was £207.8 million, which was in line with the same period in 2019. Finance providers were able to return £73.1 million of APP fraud losses to victims, up 86% when compared to last year.

However, the growth in online fraud has seen more scams harvest customers' personal and financial details, for example through phishing emails or smishing text messages, which impersonate trusted organisations.

There is often a delay between criminals obtaining people's details and using them to commit fraud, meaning the full losses from COVID-19-related scams in the first half of this year are likely to not yet have been fully realised.

Commenting on the data, Katy Worobec, Managing Director of Economic Crime at UK Finance, said: 'Criminals have ruthlessly adapted to this pandemic, with scams exploiting the rise in people working from home and spending time online. These range from investment scams promoted on social media and search engines to the use of phishing emails and fake websites to harvest people's data.'