A sustained recovery in the British economy will depend on small businesses being able to “return to normal” and grow through innovation once the restrictions are lifted, a Centre for Policy Studies webinar found on Wednesday.
John Glen, economic secretary to the Treasury, told delegates at the virtual Roadmap to Recovery session that the right interventions must be made to ensure small firms, which make up 99 per cent of all UK businesses, can thrive and lead the economic recovery once the pandemic is over.
“There have been £45 billion ($62.6bn) of bounce-back loans and the business failure rate last year was lower than normal at about 25 per cent … so we need to create the conditions where businesses can have support with working capital, so that they can actually grow forward," Mr Glen said.
Britain's coronavirus-ravaged economy shrank 9.9 per cent in 2020, the biggest annual fall in output since modern records began. Meanwhile, public sector borrowing soared to £34.1bn in December, taking government borrowing since the start of the financial year in April to a record £270.8bn.
While the pandemic has hurt the business community at all levels, at least 250,000 of the 5.9 million small companies in the UK are set to close in 2021 unless the government provides more assistance, according to the Federation of Small Businesses.
The government has issued 1.4 million loans to prop up businesses as part of its £280 billion support package since the start of the crisis.
Mr Glen said UK finance minister Rishi Sunak is expected to “do everything he can” at the March 3 budget to support small businesses post pandemic and ensure the maintenance and creation of jobs.
The Treasury will also focus on setting interventions that will enable businesses to operate freely including a soon-to-be unveiled support scheme for bank lending, Mr Glen said.
“We must support SMEs and we've got to be sensitive to the range of experiences across different sectors, but recognise that a sustained recovery is going to be based on them getting back to normal and growing through the innovation at these challenging times.”
Gary Turner, cofounder and managing director of Xero, a platform used by 600,000 small businesses to manage their accounts, said technology will play a key role in ensuring small businesses can lead the UK’s economic rebound.
Mr Turner set up Xero in 2009 and has helped to transform it from a company of three employees with a turnover of £50,000 to one employing thousands of people across the globe with a turnover of more than £100 million last year.
While small firms hold the key to job growth, they face significant challenges, he said, but four strategies can set them on the right track including the acceleration of digital adoption to ensure companies are ready for any future disruptions.
The second strategy is to put in place new legislation to end unfair payment practices and ensure small businesses have the cash flow to kick-start the new economy. The third is to champion the work of accountants and business coaches, who have effectively been "the key workers of the pandemic" by helping small businesses survive the double hit of Covid and Brexit.
Finally, Mr Turner called for the small business community to have better representation on the political stage.
“The small business economy must have a greater voice to argue for the measures that will drive growth and economic recovery,” Mr Turner said.
Claire Walker, co-executive director of policy and campaigns at the British Chamber of Commerce, said the government’s exit strategy from the pandemic, set be unveiled on February 22 by Boris Johnson, will be “a key test of business confidence”.
Expectations are high with the BCC hoping the government will offer businesses a clear roadmap out of the crisis and reassure them that long-term support will remain in place.
“Businesses have been really shocked not only by the pandemic, but by the stop-start nature of the pandemic, which has almost been the most punishing thing.
“We would like to see a whole year of support in 2021 so that businesses know that this will be the support as we move out of lockdown.”
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Information: www.emirateslitfest.com
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
UAE currency: the story behind the money in your pockets
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
More coverage from the Future Forum
Squads
India: Kohli (c), Rahul, Shaw, Agarwal, Pujara, Rahane, Vihari, Pant (wk), Ashwin, Jadeja, Kuldeep, Shami, Umesh, Siraj, Thakur
West Indies: Holder (c), Ambris, Bishoo, Brathwaite, Chase, Dowrich (wk), Gabriel, Hamilton, Hetmyer, Hope, Lewis, Paul, Powell, Roach, Warrican, Joseph
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The biog
Favourite film: The Notebook
Favourite book: What I know for sure by Oprah Winfrey
Favourite quote: “Social equality is the only basis of human happiness” Nelson Madela. Hometown: Emmen, The Netherlands
Favourite activities: Walking on the beach, eating at restaurants and spending time with friends
Job: Founder and Managing Director of Mawaheb from Beautiful Peopl
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
More from Neighbourhood Watch:
Match info
Uefa Champions League Group H
Manchester United v Young Boys, Tuesday, midnight (UAE)
UAE currency: the story behind the money in your pockets
LA LIGA FIXTURES
Saturday (All UAE kick-off times)
Valencia v Atletico Madrid (midnight)
Mallorca v Alaves (4pm)
Barcelona v Getafe (7pm)
Villarreal v Levante (9.30pm)
Sunday
Granada v Real Volladolid (midnight)
Sevilla v Espanyol (3pm)
Leganes v Real Betis (5pm)
Eibar v Real Sociedad (7pm)
Athletic Bilbao v Osasuna (9.30pm)
Monday
Real Madrid v Celta Vigo (midnight)
