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Disorderly Brexit could damage UK’s economic recovery from Covid, says OECD

Disorderly Brexit could damage UK’s economic recovery from Covid, says OECD

Britain’s economy faces a double risk to recovery from a disorderly Brexit as the coronavirus pandemic drags down growth, the Organisation for Economic Co-operation and Development has warned.



a car parked on a sidewalk: The UK car industry and food and textiles producers could be hit hardest by a disorderly Brexit, suffering a fall in exports of more than 30%.


© The Guardian
The UK car industry and food and textiles producers could be hit hardest by a disorderly Brexit, suffering a fall in exports of more than 30%.

On the eve of a critical EU leaders’ summit in Brussels, the influential Paris-based thinktank said the Covid crisis would further complicate a disorderly Brexit as companies were less prepared for the end of the transition period, having diverted attention away from leaving the EU.

It warned that failure to secure a free trade agreement before the UK leaves the Brexit transition period at the end of December would leave the economy 6.5% lower in the next few years than would have been the case if existing arrangements with the EU had been maintained.

In a development with potential to cause severe disruption for cross-border trade, it said a disorderly Brexit would have the most significant impacts for manufacturing, with the UK car industry, food and textiles producers hardest hit, suffering a fall in exports of more than 30%.

Álvaro Pereira, the director of the country studies branch at the OECD, said: “We know Covid has been the largest economic shock and social shock in the last few decades all across the world. Brexit obviously compounds the issue.

“The most important thing in the next few days and months is to focus on a deal, so the closest possible relationship is established between the UK and EU. Both parties lose if there is no deal.”

Publishing its first major economic survey of the UK since 2017, the OECD said a disorderly Brexit had potential to compound the risks to the British economy from

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UK’s Sunak Readies New Jobs Plan as Economic Recovery Wanes | Investing News

UK’s Sunak Readies New Jobs Plan as Economic Recovery Wanes | Investing News

LONDON (Reuters) – British finance minister Rishi Sunak will announce on Friday his latest plan to support jobs hit by the expected closure of bars, restaurants and other businesses as the government tries to slow the spread of COVID-19.

The second wave of the coronavirus is threatening to derail Britain’s economic recovery which was already starting to wane, according to official data.

With the government’s main furlough scheme closing at the end of the month and health restrictions tightening by the day, swathes of workers in hospitality, arts and other sectors face unemployment and Sunak has come under pressure to help them.

“The chancellor will be setting out the next stage of the job support scheme later today that will protect jobs and provide a safety net for those businesses that may have to close in the coming weeks and months,” a Treasury spokeswoman said.

There are around 2.5 million jobs in the hospitality sector.

Friday’s official data showed economic output rose by 2.1% in August – less than half the median forecast in a Reuters poll of economists and the slowest increase since the economy began to recover in May from a record slump.

Pubs across England, Wales and Scotland were forced to enact early closing times last month. Scotland’s government has since ordered a 16-day closure of pubs in the country’s two biggest cities starting on Friday.

Sunak’s new jobs plan would subsidise two thirds of the wages of workers in pubs, restaurants and other businesses forced to close, the Times newspaper reported.

“Today’s figures show our economy has grown for 4 consecutive months, but I know that many people are worried about the coming winter months,” Sunak said in a statement.

“Throughout this crisis, my single-focus has been jobs – protecting as many jobs as possible, and

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UK’s Sunak readies new jobs plan as economic recovery wanes

UK’s Sunak readies new jobs plan as economic recovery wanes

By Andy Bruce



a man wearing a suit and tie: Britain's Chancellor of the Exchequer, Rishi Sunak, leaves a television studio in London


© Reuters/TOBY MELVILLE
Britain’s Chancellor of the Exchequer, Rishi Sunak, leaves a television studio in London

LONDON (Reuters) – British finance minister Rishi Sunak will announce on Friday his latest plan to support jobs hit by the expected closure of bars, restaurants and other businesses as the government tries to slow the spread of COVID-19.

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The second wave of the coronavirus is threatening to derail Britain’s economic recovery which was already starting to wane, according to official data.

With the government’s main furlough scheme closing at the end of the month and health restrictions tightening by the day, swathes of workers in hospitality, arts and other sectors face unemployment and Sunak has come under pressure to help them.

“The chancellor will be setting out the next stage of the job support scheme later today that will protect jobs and provide a safety net for those businesses that may have to close in the coming weeks and months,” a Treasury spokeswoman said.

There are around 2.5 million jobs in the hospitality sector.

Friday’s official data showed economic output rose by 2.1% in August – less than half the median forecast in a Reuters poll of economists and the slowest increase since the economy began to recover in May from a record slump.

Pubs across England, Wales and Scotland were forced to enact early closing times last month. Scotland’s government has since ordered a 16-day closure of pubs in the country’s two biggest cities starting on Friday.

Sunak’s new jobs plan would subsidise two thirds of the wages of workers in pubs, restaurants and other businesses forced to close, the Times newspaper reported.

“Today’s figures show our economy has grown for 4 consecutive months, but I know that many people are worried about the coming winter months,”

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How coronavirus has hit the UK’s creative industries

How coronavirus has hit the UK’s creative industries

As the days get shorter and the second wave of coronavirus sets in, the UK is switching to a new winter economy plan. The package of measures marks a shift in government rhetoric from “jobs retention” to “jobs support” as the new plan focuses on so-called “viable” jobs, rather than protecting jobs in general.

For those that previously made their living in the creative industries, this is worrying news. With many sectors of the creative economy unable to resume activity due to the pandemic, many creative jobs may not be seen as viable under the rules of the new scheme.

An even greater crisis faces the many creative freelancers who have been excluded from all forms of jobs and business support since the pandemic hit in March. Campaign group Excluded UK estimates that 3 million UK taxpayers have been unable to access meaningful government support. For some, this may be because they have a part-time job on a company’s payroll. For others, it is due to the small profits made by their limited companies. And there is a litany of other reasons.

Ironically, many of the excluded are those creatives who worked on the recorded content – the TV shows, the albums, the National Theatre streams – that sustained the nation during lockdown. While 15% of the working population is freelance, in creative sectors that leaps to 47%.

Creative responses to coronavirus

In our research on the effects of the pandemic on creative freelancers, most of those we have spoken to had every gig, job or commission in their diaries cancelled in those first few days and weeks of lockdown earlier this year. Projects that may have been three years in the making were shelved indefinitely, and there was an immediate halt of cashflow in many cases.

Many creative freelancers

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