Debt, confidence, and delays were the focus of the week, which will begin to raise questions over the UK’s recovery from Covid-19.
Company and national debt have increased dramatically over the last ten months, and these record levels will need to be repaid in time. Many will be looking to the Budget in March for guidance on how and when his repayment will take place.
Yet, consumers don’t appear to be taking on more debt, possibly as a sign of low confidence in future income as well as the inability to gain debt on large purchases such as holidays. Consumer spending accounts for a large proportion of the UK economy, meaning that there could be later impacts of lower levels of spending.
As we ease into our new relationship with the EU, companies are navigating new rules and administrative burdens, not least of all finding out the impact of rules of origin and being subject to charges or delays. However, in the current climate, it is inevitable that some of the delays seen in various sectors can be attributed to the impact of Covid-19.