Sirius News Bulletin â€“ 27th November 2020

27th Nov 2020

This bulletin provides a summary of topical news, announcements and policy developments affecting business across the UK.
Spending review
New £3bn unemployment scheme
The Chancellor has announced a £3 billion ‘Restart’ programme to provide those who have been out of work for more than 12 months with tailored job-seeking support.
Read more about the programme at: www.peoplemanagement.co.uk/news/articles/chancellor-announces-3bn-unemployment-scheme-and-minimum-wage-increases

National Living Wage increase to protect workers’ living standards
From April 2021, the National Living Wage will increase by 2.2% from £8.72 to £8.91, and will be extended to 23- and 24-year-olds for the first time.
Read more about the increase at: www.gov.uk/government/news/national-living-wage-increase-to-protect-workers-living-standards

Covid-19
Consumer spending to fall by nearly £200bn in 2020
Total UK consumer spending is expected to fall by £183.6 billion (14.9%) in 2020 due to national and regional lockdowns. This equates to a drop in spending of around £6,600 per household with the biggest fall in the transport, foodservice, and tourism sectors.
Read more about the spending fall at: https://catererlicensee.com/uk-consumer-spending-to-fall-by-nearly-200bn-in-2020/

HSE checks to ensure transport sector is Covid-secure
HSE inspectors and local authority officers will be visiting warehouses and distribution centres across the UK to make sure workplaces are Covid-secure and are following the relevant guidance.
Read more about the inspections at: https://press.hse.gov.uk/2020/11/23/hse-is-checking-businesses-in-the-transport-sector-are-covid-secure/

Covid-19 hits small retailer six times harder than 2008 recession.
Small retailers have been impacted by Covid-19 six times harder than by the recession in 2008, according to research from O2 Business and the Centre for Economic Business Research. Retail sales fell by 24% between Q2 2019 and Q2 2020 due to national and regional lockdowns compared to 3.9% during the 2008 recession.
Read more about the research at: https://www.mobilenewscwp.co.uk/News/article/covid-19-hits-small-retailers-six-times-harder-2008-recession

Hospitality
Hospitality businesses face Eat Out Scheme checks
HMRC will carry out compliance checks on Eat Out to Help Out Payments at around 4,000 hospitality
Businesses as it seeks to recover funds paid in error.
Read more about the checks at: www.morningadvertiser.co.uk/Article/2020/11/19/How-many-businesses-face-potential-EOTHO-repayments

Almost three quarters of hospitality firms at risk of closure
Over 70% of hospitality and pub businesses expect to be unavailable and cease trading in2021, a new survey has found.
Read more about this survey at: www.morningadvertiser.co.uk/Article/2020/11/19/How-many-pubs-will-close-in-2021

Agriculture
Details emerge of Defra’s interim support scheme
Expressions of interest are being accepted for a pilot of the Sustainable Farming Incentive (SFI) scheme, which will start in April 2021. The SFI is the interim scheme that will replace CAP Direct Payments before the new Environmental Land Management (ELM) scheme starts in 2024.
Read more about the interim scheme at: https://www.fwi.co.uk/news/farm-policy/details-emerge-of-defras-stepping-stone-support-scheme

Scottish farmers welcome £5m fund
Scottish farmers have welcomed a new £5 million fund to help the country’s food and drink sector recover from the impact of the Covid-19 pandemic.
Read more about the fund: www.farminguk.com/news/scottish-farmers-welcome-5m-fund-to-help-recover-sector_57036.html

Green energy
Halfords to train 1,500 electric vehicle technicians
Halfords estimates that the UK motor industry will need to double the number of electric vehicle technicians undergoing training each year to ensure the UK is able to service and repair an estimated 11 million electric vehicles on the roads by 2030.
Read more about Halford’s training programme at: www.personneltoday.com/hr/halfords-electric-vehicle-training/

Government to subsidise onshore renewable energy projects.
The Government has announced that it plans to double the amount of renewable energy it will subsidise in 2021 after agreeing to include onshore wind and solar power projects for the first time since 2015. Energy companies will compete for subsidy contracts in an auction that will take place at the end of 2021.
Read more about the subsidies and auction at: www.theguardian.com/environment/2020/nov/24/uk-government-to-subsidise-onshore-renewable-energy-projects

Construction
Construction industry recovering from impact of Covid-19
The construction industry is slowly recovering from the impact of the Covid-19 pandemic according to a number of industry reports. An ONS report revealed that construction output grew by 47.1% in Q3 2020, compared with Q2 2020. However a report by IHS Markit/CIPS revealed that October 2020 saw the weakest rise in construction output since June 2020.
Read more about the reports at: https://cadvantage-knowledge.co.uk/product/news-articles/market-update-news-articles/construction-market-overview-november-2020

Office developments impacted by Covid and Brexit
A survey by Deloitte has revealed that the business and developer sector is currently in a ‘state of suspension’ due to the impact of the Covid-19 pandemic and Brexit. The completion of new office developments has been delayed as contractors work out how to manage sites in a Covid-secure way. Lockdowns have also prevented developers from marketing buildings with many tenants facing expiring leases being reluctant to commit to new space.
Read more about the survey at: https://www2.deloitte.com/uk/en/pages/real-estate/articles/london-crane-survey-2020.html

Finance and professional services
Taskforce to increase diversity in professional services sectors
A new taskforce has been launched to improve socio-economic diversity at senior levels in financial and professional services across the UK.
Read more about the taskforce at: https://news.cityoflondon.gov.uk/new-taskforce-to-boost-socio-economic-diversity-in-uk-financial-and-professional-services-sectors/

Music
Increase in music industry’s contribution to economy pre-Covid
The UK music industry contributed £5.8 billion to the UK economy in 2019, up 11% from £5.2 billion in 2018. This is according to a report by UK Music, which is urging the Government to provide the right support to help the industry recover from the impact of the Covid-19 pandemic.