Business

Ways in which Manchester’s businesses are adapting to the COVID-19 crisis

Businesses across several verticals, like hospitality, entertainment, restaurants, sports and various others have gone remote in an attempt to flatten the curve as well as survive the challenging times.

The Manc The Manc - 28th December 2020
Matthew Waring / Unsplash

The COVID-19 crisis sabotaged the global economy and brought the superpowers to their knees.

Businesses have been floundering and trying out different means to stay afloat in the midst of the crisis. While some have been able to survive and absorb the shock, many have not.

Now, with newer and mutated strains of the coronavirus at large, pressures on the economy are mounting. That being said, we shall now look into the scenario of Manchester’s businesses and see how they are adapting to the new normal.

Businesses across several verticals, like hospitality, entertainment, restaurants, sports and various others have gone remote in an attempt to flatten the curve as well as survive the challenging times.

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The UK government had lifted the restrictions for a while, and this allowed people to enjoy themselves, and for businesses to make revenue. However, a mutated strain of the coronavirus is wreaking havoc on the country. 

Therefore, businesses will once again have to go through an ordeal and try to adjust to the new normal all over again. Therefore, without any further ado, let us delve right into the scenario of the businesses in Manchester.

Shut down of businesses in Manchester:

According to a recent survey report, about 18 per cent of the jobs in Greater Manchester have shut down for an indefinite period of time. And now, with the possibility of a second wave of the COVID-19 crisis, this figure is only assumed to go up.

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The CEO of The Growth Company said that most of the businesses in Manchester had to deal with the unavailability of more than 20% of their workforce during the lockdown. This resulted in massive losses and even led to the shutting down of several businesses.

However, amidst all the negativity and hopelessness, one thing that has come as a welcome relief is that the big businesses in Manchester have extended their support to the smaller companies. They have supported the businesses with helpful resources and sponsorship to help them stay afloat and make it through the hard times.

The shift towards the use of technology to make it through the crisis:

Most businesses, all around the world, have started resorting to cutting-edge technology to make it through the period of crisis. As mentioned earlier, more than 20% of Manchester’s workforce was not available during the lockdown. This put the businesses at a precarious condition. Therefore, the only saving grace at such times was technology.

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More and more businesses in Manchester have made a move towards Artificial Intelligence and Machine Learning to see their way through the pandemic. These innovations of technology make it possible to reduce the need for human labour and handle the work pressure better. Artificial Intelligence has seen magnanimous growth in all types of industries. From online casinos and safest poker sites accepting US players to the sector of hospitality and tourism, AI has made the tough times easier.

The Use of Social Media in the Hours of Crisis:

Local businesses in Manchester have resorted to the use of social media more than ever in these hours of crisis. Local and small-scale businesses do not have funds similar to the big businesses to absorb the shock. Therefore, their need for social media is more than the other bigger businesses. Studies have hinted that small-scale businesses in Manchester have made greater use of social media platforms to reach out to more clients and customers. 

It has also been observed that communities that have robust local businesses are eco-friendlier, sustainable and economically wholesome. Therefore, it is important for them to thrive even during the pandemic. And Manchester’s small-scale and local businesses have used the weapon of social media to cross the hurdles.

Summing up…

It is true that the scene in Manchester looks worrisome – now more than ever – with the new strain of Coronavirus at large. However, businesses have changed their core values and reworked on their dynamics to stay put amidst the hullaballoo. 

That said, while some have been able to see their ways through the crisis, some have not. However, the fight against this invisible and seemingly invincible force of nature is still on, and Manchester is doing a wonderful job at that. It is now only a wait of time to see how the second phase of lockdown, if levied upon, works out for the businesses in Manchester.  

Business

Toys R Us is back in the UK four years after going bust

Daisy Jackson Daisy Jackson

Christmas has come early for kids and parents across the nation – Toys R Us is officially back up and running in the UK.

The retailer collapsed back in 2018 and closed its 100 stores, leaving gaping holes in retail parks up and down the country.

But now the beloved toy shop chain has made a return – sort of.

The Toys R Us website has relaunched today, with more than 14,000 toys and games up for sale.

Shoppers will find world-famous brands like Lego, Marvel, Crayola and Play-Doh back on sale.

The new website features a return from the retailer’s legendary mascot, Geoffrey the Giraffe, who was photographed standing in one of the empty shops with a suitcase back in 2018, breaking everyone’s hearts.

The old Toys R Us in Manchester
Geoffrey the Giraffe saying his goodbyes

A message says: “The world’s greatest toy shop is back! We can’t wait to develop and grow with you and your loved ones, over the coming weeks, months and years!”

There don’t appear to be any plans at present to bring back bricks-and-mortar toy shops.

The retailer closed due to a change in consumer habits and, like many traditional physical stores, a struggle to keep up with the rise of online shopping.

It teased that it would be making a comeback back in January.

At the time, Louis Mittoni, head of Toys R US ANZ, said: “Tailoring our successful Australian relaunch plan to the UK echoes the success of other e-commerce ‘platform play’ businesses that have delivered growth and value due to their ability to quickly and cost effectively expand their software, processes, partner relationships and brands into new countries.

“Since Toys R Us’ return to Australia in June 2019, we have scaled quickly as customers returned to the much-loved brand and our e-commerce model has proven its success.

“My team and I are looking forward to developing technical and commercial relationships with UK-based vendors and partners and to engage with the many loyal Toys ‘R’ Us former customers and fans in the UK.”

Featured image: Flickr

Business

Everything you need to know about Kwasi Kwarteng’s mini-budget 2022

Danny Jones Danny Jones Chancellor mini-budget summary

The Chancellor of the Exchequer, Kwasi Kwarteng, has delivered his 2022 mini-budget in an attempt to address concerns surrounding the ongoing cost of living crisis.

While significant tax cuts were already predicted ahead of the crucial economic update, many people across the country may have been surprised by the sheer extent of measures announced by the chancellor across the board.

Energy

Addressing the subjects on everyone’s mind early on, Kwarteng stated that the annual price of energy for UK households will now be limited to £2,500, resulting in savings of around £1,000 against the projected figures following the most recent energy cap.

He also confirmed that the £400 energy discount is still in place, with the most vulnerable homes receiving even more in government support. Some are less than convinced that any real ‘savings’ will be made.

Earlier this week, the government announced that they would be halving energy bills for businesses over the next six months. Today he confirmed that a relief scheme will be put in place, as well as an “energy market finance scheme” which will offer liquidity to traders.

Similar relief will be afforded to schools and charities.

Lending and inflation

The hope is that this overall energy plan will reduce inflation, which currently sits at 9.9% based on August’s figures, to 5% and see the trending rate of annual financial growth to 2.5%.

Not only does the government believes this will lower the wider cost of living pressures but also free up finances to help better fund public services.

The overall energy relief package is said to be costing approximately £60 billion, meaning a significant amount will have to be borrowed from the Bank of England.

Bankers’ bonuses cap and corporation tax hike scrapped

On the subject of banks, one of the most controversial parts of the Kwasi Kwarteng’s update was the announcement that the cap on bankers’ bonuses will be scrapped entirely, arguing that previous measures only led to higher wages and people paying tax in other countries outside of the UK.

Next year’s scheduled corporation tax increase from 19% to 25% is also going to be scrapped, the rationale being that “low tax encourages investment” both domestically and from overseas.

Once again, people are less than impressed that the nation’s highest-earners appear to be the ones benefiting the most from government policy.

Removing red tape

The chancellor also said that the government are committed to removing further enterprise barriers caused by EU regulation, hoping to streamline “planning restrictions” across childcare, immigration, agricultural productivity, and digital infrastructure.

He sighted energy, telecoms and travel as key problem areas hamstrung by red tape.

However, he conversely criticised the ongoing strike action across the country and said that they plan to imitate other countries by introducing legislation to ensure minimum level service resumes.

Tax cuts

Elsewhere, businesses in nearly 40 different ‘designated zones’ have been promised tax cuts for the next 10 years and no stamp duty on new premises. Speaking of which, as of today, no payment will be required on the first £250,000 of a property’s value, with first-time buyers paying zero on the first £425,000.

In fact, it looks as though the overall tax system is set to be reviewed once again. Not only are previous corporation tax and stamp duty plans being scrapped but income tax, alcohol duty and more are all being reexamined as part of the not-so mini-budget.

Alcohol duty is set to be frozen in February, meaning that Brits can expect to save around 7p per pint, 38p per bottle of wine and £1.35 on spirits. VAT-free shopping is also due to be introduced for overseas visitors, with aim of increasing revenue from tourism.

Kwarteng also confirmed that the basic rate of income tax will be cut by 1p to 19p from April 2023, with the 45p tax rate for those earning over £150,000 will be abolished from the same time next year.

This is said to be the biggest series of tax cuts in 50 years.

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A wary winter

Despite the ‘real’ living wage being increased by 10% in an attempt to try and curb rising costs in almost every other walk of life, it goes without saying that the UK faces an extremely difficult period ahead as energy costs continue to rise, post-Brexit prices keep rising and we approach the ever expensive winter months.

The shadow chancellor Rachel Reeves told the Financial Times that regardless of the measures announced today, both the mini-budget and Liz Truss’ appointment as Prime Minister represents “another zigzag on a path of policy failure” rather than any real sign of change.

Featured Image – Flickr @ Policy Exchange

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