The Bank of England (BoE) has announced plans to pump an additional £100 billion into the UK economy to aid the country’s recovery from the COVIID-19 crisis.
The Bank’s nine-member Monetary Policy Committee voted 8-1 on expanding its government bond-buying “quantitative easing” programme to £745 billion, up from £645 billion. The move was largely predicted by economists, who estimated an increase of £100-150 billion.
The MPC also voted unanimously to maintain interest rates, which currently stand at a record low of 0.1%.
In its statement on the new policy decisions, the Bank noted that there are reasons to be optimistic about the state of the UK economy amid the pandemic – particularly the lower-than-expected fall in GDP during Q2 of 2020 – though it added that the outlook for the UK and world economy remains “unusually uncertain”.
“There is a risk of higher and more persistent unemployment in the United Kingdom,” the statement reads. “Even with the relaxation of some Covid-related restrictions on economic activity, a degree of precautionary behaviour by households and businesses is likely to persist.”
“Inflation is well below the 2% target and is expected to fall further below it in coming quarters, largely reflecting the weakness of demand.”
The tapering down of different initiatives will spark fresh concerns within many organisations, raising questions of whether they will be able to stand on their own two feet again.
The furlough scheme is at the heart of this subject. That is because it has been the most widely-used of all the financial support schemes available – around 8.4 million workers are having 80% of their salaries paid for by the Government at present (up to £2,500 a month). But at the end of May, the Chancellor Rishi Sunak confirmed that the furlough scheme is to end on 31 October 2020, and it will undergo some changes before then.
There are two key questions, then, that business leaders must address. Firstly, what do they need to know about the upcoming reforms to the furlough scheme? Secondly, what can they do if the curtailing of this initiative is likely to cause significant financial distress? Nic Redfern, Finance Director at KnowYourMoney.co.uk, offers his thoughts to Finance Monthly.
What are the changes to the furlough scheme?
Currently, it is estimated that the Government has spent £15 billion so far in covering the salaries of furloughed staff. By the end of the scheme, that figure is likely to reach £80 billion – that is £10 billion for each month the scheme was running.
While the Office for Budget Responsibility is set to publish more detailed costings in the coming days, what these approximated figures show us is that there are billions of pounds that is still yet to be paid for the initial four months of the furlough scheme.
This chimes with the findings of a recent study that KnowYourMoney.co.uk conducted among over 900 UK businesses. We found that as of April almost half (48%) of British companies had furloughed staff – this figure will likely be even higher now – but of those, 71% were still awaiting funds to be transferred to them from the Government.
Currently, it is estimated that the Government has spent £15 billion so far in covering the salaries of furloughed staff.
The Government must prioritise getting up to date with furlough payments to employers; businesses with many members of staff on furlough will not only be feeling the strain if they are not being reimbursed for their salaries, but they will also struggle to understand the real financial health of the business when some supports are yet to be issued.
Employers must do all they can to clearly track how much of their expenditure on salaries is likely to come back into the business. But they can only do so if they understand how the scheme is due to change in the months ahead.
Here are the key changes that were announced by the Chancellor on 29 May: from Wednesday 1 July, businesses using the Government's furlough scheme will be able to bring furloughed employees back part-time; from August, employers will have to pay national insurance and pension contributions; and from September, while employees on furlough will continue to get 80% of their salary, the proportion that the state pays will be reduced each month (government will only pay 70% in September and 60% in October).
The part-time furlough option may interest some employers. Let’s take a simplified example: a member of staff who earns £2,000 per month and works 40 hours a week, but has been furloughed and their employer is not topping up their salary beyond the 80% offered by the Government. If said member of staff returns part-time and work 20 hours per week throughout July, they will now receive 50% of their monthly salary from their employer as normal (£1,000). Meanwhile, the remaining 50% will be paid via the furlough scheme (80% of it – so £800). That means they employee will now earn £1,800 per month, which is higher than the amount they would be paid if they were furloughed full-time (£1,600).
[ymal]
This solution could suit both employers and employees. Not only can it bolster the workforce and aid the transition back into work for some people who have been furloughed for many weeks, but financially it would ensure the part-time employees are better off. Plus, the business does not need to suddenly jump back to paying all of their salaries.
What are the alternatives?
For some businesses, though, they might not be in a position to bring furloughed staff back, even on a part-time basis. Yet they will need to do so once November arrives. So, what can they do to put themselves in a stronger financial position as they prepare to pay all of the employees’ full salaries again?
The important thing to remember is that there remain many options available for businesses requiring financial support.
For one, the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce-Back Loans initiatives are both still operational. Elsewhere, the Government is providing a Small Business Grant Fund (SBGF) to businesses that already receive Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR).
Furthermore, it is worth remembering that any VAT payments due between 20 March and 30 June 2020 can be deferred to a later date. Also, any Income Tax Self-Assessment payments that are due by 31 July 2020 can be deferred until 31 January 2021.
The viability of these options will very much depend on each business’ circumstances. But importantly, if the tapering down – and eventual ending – of the furlough scheme is causing financial concerns within your organisation, remember that there are other forms of support in place.
The Vicarage
Set on the outskirts of the sleepy village of Holmes Chapel, The Vicarage offers everything you could possibly desire for a glorious countryside weekend. Housed in a 17th Century Grade II listed building and centred around its cosy restaurant and bar area, the hotel finds the perfect balance between rustic, vintage interiors and contemporary edge. Stunning woodwork, perfectly restored original features and thoughtful details give the inn a sense of place and the general friendly and warm ambiance make you feel at home.
The 26 rooms fall into two categories, standard and signature, and offer supremely comfortable Queen and King-sized beds, Nespresso coffee machines, rainmaker showers and a lovely selection of second-hand books – a nice little touch that adds to the hotel’s charm. For a real treat though, book one of the three signature rooms which are a tad more lush and characterful.
Driven by the gardeners, foragers, farmers and suppliers of Cheshire, everything in the main restaurant’s menu is locally sourced and comprises a number of beautifully cooked classics. Stand-outs include a mouth-watering smoked salmon and caviar starter and a cooked-to-perfection sea bass main. Served in the light, bright conservatory and the restaurant room next to it, the breakfast buffet isn’t huge but covers all the essentials: fruits, yoghurts, cereals and granola, juices, pastries and an impressive toast bar which comes with everything from butter and a selection of jams through to Marmite and peanut butter. You can also opt for freshly cooked to order Full English breakfast (vegetarian option available too), Eggs Benedict, Florentine and Royale, avocado on toast and sweet or savoury pancakes.
For more information and to book your visit, please go to: https://www.thevicaragecheshire.com/
The Courthouse
A renovation of what was previously Knutsford Crown Court is another great base for a weekend escape in Cheshire. Beautifully refurbished to mimic the building’s style and history, The Courthouse is home to Barristers Restaurant, and The Court Room – a popular weddings and events space, as well as the recent addition of three stunning bedrooms.
As one would expect when hearing its name, Barristers Restaurant stays true to the history of the building – barristers’ wigs hanging from pegs, framed pictures of famous offenders lining the walls and a menu that consists of ‘opening statements’, ‘proceedings’ and ‘main evidence’ instead of the more commonly used ‘nibbles’, ‘starters’ and ‘mains’. Why not make the most of what’s already there? Working closely with local suppliers, Executive Chef Steven Tuke crafts traditionally British menus that change with the season and include classics such as slow braised lamb shoulder, smoked cod loin and swordfish steak. And the verdict seems to be that everything he’s doing is working - whether it’s for breakfast, lunch, afternoon tea or dinner, locals flock to the restaurant for Chef Tuke’s hearty creations.
Earlier this year, The Courthouse opened its first three rooms – the Twin King Suite, the Superior Bridal Suite and the Signature King Suite. However, the owners of Flat Cap Hotels, brothers Dominic and Oliver Heywood, are not planning to stop here and are opening eight more luxury bedrooms in the existing wings of the iconic building. Stay tuned for more from the duo.
For more information and to book your visit, please go to: https://thecourthousecheshire.com/
It’s hard not to fall in love with Cornwall and its long, rugged coastline and hundreds of sandy beaches. It’s also hard not to fall in love with Fistral Beach Hotel & Spa and its perfect location right next to surfers’ favourite Fistral Beach. In addition to sensational views, staying in a room here grants you access to the hotel’s stunning Dune Restaurant, the cosy Bay Bar, excellent spa, pool and an abundance of things to do within a walking distance from the hotel. Should you wish to venture outside of the grounds, the beach and the Quiksilver Surf School are less than 200 yards away, while Newquay is just about 2 miles from the hotel.
The interiors take full inspiration from the hotel’s surroundings – clean lines, Navajo white walls, classic blond wood furnishings and neutral fabrics with pops of aquamarine jazzing up the rooms’ ambiance. All best rooms come with stylish bathtubs right next to floor-to-ceiling windows and balconies with wicker table and chairs – the perfect spot for a quick glass of champagne before heading downstairs for dinner.
After a morning exploring Cornwall, an afternoon in the spa will feel well-needed. Ideal for those seeking relaxation, the spa features a vitality pool, whirlpool tub, sauna and steam room and an extensive list of superb treatments. If you like to work up a sweat even during a relaxing weekend, Fistral Beach Hotel & Spa offers an excellent fitness room fully equipped with all the essential machines for a good workout.
Dune Restaurant’s carefully compiled menu changes regularly to ensure that it makes the most of fresh, seasonal Cornish produce. Perfect for a special lunch or dinner, the atmospheric restaurant celebrates freshly caught seafood and feels very intimate and relaxed. We enjoyed a beautifully prepared three-course meal paired with fantastic wines, while looking out over the sea. Settle on a squashy sofa in the bar after your meal for the perfect end to a truly wonderful day.
Breakfast is served in Dune Restaurant too, where you can find a continental buffet featuring fresh pastries, fruit and a selection of cheese and meats, as well as a menu of hot options.
Fistral Beach Hotel & Spa’s outstanding location, gorgeous food, exquisite spa and friendly staff make it the perfect base to explore one of England’s most beautiful counties. It is the perfect place to escape to – and the perfect place to spoil yourself and the one you love.
Nightly rates start from £80 on a bed and breakfast basis.
For more information and to book your stay:
Phone: 01637 852221
Email: reservations@fistralbeachhotel.co.uk
Website: https://www.fistralbeachhotel.co.uk
Looking for a comfortable hotel in the Lakes that serves award-winning food? Relax and unwind at the perfectly located Beech Hill Hotel & Spa. Expect well-cooked local produce, pampering treatments at their Lakeview Spa and some of the most spectacular views of Lake Windermere.
The Atmosphere
Nestled on the eastern bank of Lake Windermere and just a five-minute drive from the picturesque town of Bowness-on-Windermere, Beech Hill Hotel & Spa benefits from an outstanding location and peaceful surroundings. Its 57 rooms feel very homely and most of them come with private balconies or access to the hotel’s stunning garden. There is a spacious balcony next to the restaurant and the hotel’s living room which is the perfect spot for a pre-dinner sunset cocktail - if the weather permits.
The Restaurant
The AA Rosette awarded Burlington Restaurant at Beech Hill Hotel & Spa is headed by Chef Lukasz who specialises in French and English cuisine. His menu encompasses the very best from Cumbrian suppliers and some of the highlights include the light Piel Island lobster, king prawn and avocado tian starter, as well as the cooked-to-perfection sea bass fillet that comes with fondant potato, marsh-samphire ice salad, asparagus and a delicious dill beurre blanc sauce.
The breakfast buffet features all of the full-English staples, as well as some continental options such as a small selection of pastries, yoghurt, cereals and fruit.
The Spa
As its name would suggest, whether you’re unwinding by the indoor pool at Lakeview Spa or choose to de-stress in the vitality spa pool in the garden, you can enjoy magnificent views of Lake Windermere in a relaxing setting. The spa also offers an extensive list of Elemis treatments that promise to leave you feeling refreshed and rejuvenated.
For more information and to book your stay at Beech Hill Hotel & Spa, please visit:
England might not have made it to the final, which saw France and Croatia square up and France victorious, but the real winner of the 2018 FIFA World Cup has been Russia. The nation has seen a major boost in tourism interest, from the UK in particular, during the monumental tournament, reports CheapOair.co.uk.
During the first week of the football tournament, CheapOair.co.uk saw a major uplift in its flight searches to the host nation as figures came in 232% higher than the average weekly search volume. This momentum continued the following week, 17-23 June 2018, as the average weekly number of searches Brits made had peaked at 227%.
Similarly, throughout the pre-event build-up the flight search windows between 11-17 March and 18-24 March 2018 saw a significant increase, as potential bookers were searching 182% and 160% higher than the average weekly search volume.
This goes to show that the football fixtures were not only a cause for celebration amongst football fans but also for the Russian economy, as businesses in its numerous host cities for the games have benefited from an influx in British tourists.
(Source: CheapOair)
Set beneath the pink-soil cliffs on Babbacombe beach, near Torquay, The Cary Arms & Spa is a chic inn that perfectly captures the beauty of the English seaside. Located inside the curve of a bay, the hotel promises breathtaking views of the endless sea and the old jetty (where both locals and seals can be seen fishing) and immense tranquillity.
The Hotel
Each room in The Cary Arms has been inspired by the hotel’s surroundings and has a very coastal feel to it. However, the main act are undoubtedly the two seafront suites and their private balconies that are a few metres from the crystal clear waters of the English Channel. Spacious rooms, walls of glass, log fires, wooden floors, walk-in showers with White Company toiletries and huge beds with outstanding view out to sea - these two suites are nothing short of spectacular! The six luxury white-and-blue beach huts which also boast views that stretch for miles, are another way of making the most of this hotel and its dreamy location. If you’re planning a seaside getaway with family or friends (including the four-legged members of the family), the three secluded Cottages come with three or five bedrooms and all the modern comforts you can ask for.
The Dining Experience
With its stone walls, wooden floors and a fireplace, the inn in The Cary Arms is probably the cosiest and most relaxed fine-dining restaurant I’ve been to, meant to serve ‘gastro food cooked simply’. If the weather is warm enough, dinner could be taken alfresco, however, the conservatory is also a great viewing point. The ever-changing menus centre around fresh, local ingredients and line-caught seafood, simply and creatively cooked according to the season. Starters include pan seared Bixham scallops and Devon crab and crayfish cocktail, whilst mains feature pan fried sea bass fillet and the classic fish and chips, with a Brixham twist. For breakfast, try the traditional Devon full English, or if you fancy a lazy breakfast on your private terrace, ask for the breakfast hamper the night before.
The Spa
Take time to pamper yourself in the hotel’s spa that features a plunge pool fitted with massage jets, sauna, steam room, mini gym and sun deck. The three treatment rooms, including a couple’s massage room, offer facials, massages and aromatherapy treatments inspired by marine-themed French beauty and skincare brand Thalgo.
I can go on and on about how gorgeous The Cary Arms & Spa is but I’m certain that neither words, nor photos will do this place full justice. I found myself utterly enchanted by the cosiness of the burning logs in the inn, the deliciousness of every bite of freshly caught fish, the smell of salty air, the happiness that being by the sea brings, and most importantly - the fact that I was experiencing all of this in England.
Luxury Doubles start from £245, Beach Huts from £345 and Beach Suites from £475 per room per night, on a B&B basis.
Website: https://www.caryarms.co.uk/
In an attempt to give companies the ability to experience how technology is transforming the financial world and how it can be deployed to solve critical business issues, an ultra-modern innovation centre has recently opened its doors in central London.
Dedicated to next generation banking and finance, the state-of–the-art centre was launched by Synechron Inc. – a global consulting and technology innovator in the financial services industry, which has plans to open innovation centres in New York, Florida, Amsterdam and Pune over the next few months. The first innovation centre that the company launched was in Dubai in October 2015 and was the first of its kind internationally.
Through the combined innovation of augmented reality, artificial intelligence, block chain, natural language and biometrics, mobile, and touch and smart technologies, the brand new centre gives businesses the chance to fully immerse themselves in the plethora of new technology available.
The Synechron Digital Innovation Centres’ aim is to act as innovation hubs for individuals and businesses willing to invest in technology and particularly in digital transformation - solving critical business issues and scaling these investments to achieve greater future business success.
The Synechron’s centre will be fully-operational from May 25th 2016 and will offer a number of options: from a half day of brainstorming session for executive management, to a rapid prototyping challenge, or even just a one hour dedicated technology workshop. Some of the key technologies available to visitors include artificial intelligence, Amazon Echo (Alexa), new apps around block chain and tablets with new apps and gamification.
Faisal Husain, CEO of Synechron, said, “We envisioned and invested in building a space where our clients can come and touch the latest in the digital world, get inspired and learn about what trends and technologies are disrupting their customers’ banking experiences worldwide. We want to help our clients be at the very forefront of digital transformation to drive an entirely new concept of banking interaction and engagement.”
