Strategic Report Our Marketplace Our Marketplace
Since the Covid-19 pandemic took hold its effects have been far reaching and dramatic; however, the UK Government’s comprehensive stimulus package has helped to protect livelihoods and providedmuch-needed support for households and businesses.
Economic backdrop The UK’s vaccination programme has been one of the most well- executed globally. We are close to restrictions being fully lifted and there is a much-anticipated economic recovery starting to emerge. During the year the UK left the European Union, however there remain several matters to be resolved, such as financial passporting rights. Pending any major Brexit-related disruption or problematic new coronavirus variants, the outlook for the UK economy looks considerably brighter than it did this time last year. During 2020, GDP contracted by -9.8%, marking the largest annual fall in UK GDP on record. The largest quarterly fall was during the second quarter of 2020 following the first and strictest period of lockdown. Thankfully, a double dip recession was avoided. To mitigate the impact of the pandemic and stimulate the economy, there has been a large response both in terms of UK Government policy and measures introduced by the Bank of England, including the furlough scheme, business rates relief, a ban on commercial evictions, record ultra- low interest rates (0.1% since March 2020) and Quantitative Easing. In stark contrast to previous periods of recession, average house prices in the UK rose 7.7% during 2020, largely thanks to the stamp duty holiday, which has been extended in part until September 2021. The UK unemployment rate hit a five-year peak of 5.1% in November 2020, 1.3% higher than a year earlier. The furlough and self-employed support schemes were extended to September 2021 and this plus the easing of restrictions is hoped will keep a lid on rising unemployment.
Stanford Building London
Swiftbox Rugby
14
Powered by FlippingBook