Breaks placed on workers returning to the office

25th September 2020

By Will Leyland

Boris Johnson’s government had been encouraging workers back to offices in order to stimulate spending and consumer demand in city centres, but this has now had to be paused due to a fairly sharp rise in cases whilst they get a grip of things.

The government are currently attempting a very fine balancing act between trying to control a rise in new cases with keeping the economy open and running during what will be the 9th month of the global Coronavirus pandemic.

Whilst the shock to the economy was severe and pronounced, it doesn’t appear to be long lasting and recovery has been progressing well over recent months since some measures began to be lifted back in May.

Broadly speaking, whilst infections are rising across the European continent, governments and populations now feel much better prepared to deal with a so-called ‘second wave’. Back in March the continent was ravaged through lack of preparation, lack of knowledge and lack of treatment.

That seems to have been mostly used to learn lessons for countries such as France, Germany, Spain and the UK where populations now appear to be willing to accept living alongside the virus rather than, say, back in June or July when there was widespread hope that a vaccine would turn up before the winter.

The question is, however, is this approach also working for the economy?

UK Economy

Thanks, it would seem, to a government message of encouraging everybody to get back out and spend their money the UK seems on course to have its best quarter on record for economic growth.

Spending in almost all areas, but especially in leisure and travel, appear to have far exceeded spending for the same period last year.

Added to that has been a huge boom in property (which we’ll come back to) which has come together to bounce the economy into potentially record-breaking figures.

As reported in the Financial Times, “A new average of forecasts by City of London economists suggests that GDP is set to rise 14.3 per cent in the third quarter, reversing 55 per cent of the 20.4 per cent drop in output in the three months to June 30.

The predicted GDP growth for the three months to September 30 would be a record, with economists’ forecasts showing the UK likely to move from the bottom of the G7 performance table in the second quarter to the top in the third.”

UK Property

In line with the wider economic recovery, the summer saw the UK property market enjoy record breaking growth, with prices increasing to set new historic highs.

Rental growth too saw a huge increase as demand soared after lockdown measures were lifted and along with them the pent-up demand from consumers keen to move. There has also been a huge shift of focus for many renters and home-owners towards where they live and now spend most of their time.

As reported by The Guardian, Miles Shipside, a Rightmove director and its housing market analyst, said: “The unexpected mini-boom continues to gather momentum as more nations reopen.

“The busy-until-interrupted spring market has now picked up where it left off and has been accelerated by both time-limited stamp duty holidays and by homeowners reappraising their homes and lifestyles because of the lockdown.”

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Breaks placed on workers returning to the office

25 September 2020

Boris Johnson’s government had been encouraging workers back to offices in order to stimulate spending and consumer demand in city centres, but this has now had to be paused due to a fairly sharp rise in cases whilst they get a grip of things.

The government are currently attempting a very fine balancing act between trying to control a rise in new cases with keeping the economy open and running during what will be the 9th month of the global Coronavirus pandemic.

Whilst the shock to the economy was severe and pronounced, it doesn’t appear to be long lasting and recovery has been progressing well over recent months since some measures began to be lifted back in May.

Broadly speaking, whilst infections are rising across the European continent, governments and populations now feel much better prepared to deal with a so-called ‘second wave’. Back in March the continent was ravaged through lack of preparation, lack of knowledge and lack of treatment.

That seems to have been mostly used to learn lessons for countries such as France, Germany, Spain and the UK where populations now appear to be willing to accept living alongside the virus rather than, say, back in June or July when there was widespread hope that a vaccine would turn up before the winter.

The question is, however, is this approach also working for the economy?

UK Economy

Thanks, it would seem, to a government message of encouraging everybody to get back out and spend their money the UK seems on course to have its best quarter on record for economic growth.

Spending in almost all areas, but especially in leisure and travel, appear to have far exceeded spending for the same period last year.

Added to that has been a huge boom in property (which we’ll come back to) which has come together to bounce the economy into potentially record-breaking figures.

As reported in the Financial Times, “A new average of forecasts by City of London economists suggests that GDP is set to rise 14.3 per cent in the third quarter, reversing 55 per cent of the 20.4 per cent drop in output in the three months to June 30.

The predicted GDP growth for the three months to September 30 would be a record, with economists’ forecasts showing the UK likely to move from the bottom of the G7 performance table in the second quarter to the top in the third.”

UK Property

In line with the wider economic recovery, the summer saw the UK property market enjoy record breaking growth, with prices increasing to set new historic highs.

Rental growth too saw a huge increase as demand soared after lockdown measures were lifted and along with them the pent-up demand from consumers keen to move. There has also been a huge shift of focus for many renters and home-owners towards where they live and now spend most of their time.

As reported by The Guardian, Miles Shipside, a Rightmove director and its housing market analyst, said: “The unexpected mini-boom continues to gather momentum as more nations reopen.

“The busy-until-interrupted spring market has now picked up where it left off and has been accelerated by both time-limited stamp duty holidays and by homeowners reappraising their homes and lifestyles because of the lockdown.”

Will Leyland

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