ADS, representing the aerospace, defence, security and space sectors, has been analysing the Government’s response to COVID-19, and what this might mean for the industry in both the short and long term. As it’s a rapidly changing situation, we’ll be checking in regularly with ADS. Their conclusions thus far:
Likelihood of recession looks stronger: UK GDP figures showed no signs of growth, almost extinguishing any hope of growth in Q1 2020. A contraction this year is now a very real possibility.
Bank of England’s has introduced timely package of measures to help UK businesses including a 0.5 reduction to the base rate, now 0.25%, and a reduction in the UK countercyclical capital buffer rate to 0% which will provide support up to £190 billion of bank lending to businesses. That is equivalent to 13 times banks’ net lending to businesses in 2019.
Industry will feel the impacts: The biggest impacts across the economy will occur when people begin significantly reducing their social consumption and changing behaviours. Any long-term impact will depend on the length of disruption to economic activity and daily life in general.
ADS is encouraging members to update them on any areas of thier business that may be impacted or disrupted in the near future – go here: https://www.adsgroup.org.uk/blog/covid-19-government-reactions-to-support-industry/
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