Posted 21.08.2020
BBC News announced an official recession in August, meaning that the UK experienced two consistent quarters of economic decline 1. Our first taste of recession since 2009.
The lockdown initiated in March in response to the Coronavirus pandemic contributed to a 20.4% decline of the UK economy, since the start of 2020 2.
Living in lockdown and the impacts of furlough reduced household spending, with many shops shut and construction work reduced.
As lockdown restrictions have eased, the economy is steadily bouncing back.
Non-essential shops have reopened, whilst the economy grew 8.7% in June 2. Government incentives, such as the August ‘eat out to help out’ scheme have encouraged consumers to start spending again.
Although this economic growth is bringing more positivity to the UK, we are still well below where we were before the virus struck. The Bank of England expects recovery to extend beyond the end of 2021.
The government furlough scheme is planned to end in October, with predictions of many further job losses. Many small businesses are benefitting from UK grants to help them through 2020 and these have proven to be a vital lifeline during the height of the pandemic.
The team at Rhodes Wealth Management have been busy during this difficult time, working closely with both new and existing clients to ensure their financial security. We provide financial advice to both individuals and business owners.
If you are facing uncertainty or would like to explore your options, contact us today to arrange a no obligation financial review on 01332 497670 or email us at rwm@sjpp.co.uk