Record borrowing outside of world wars
20 October 2020: With the UK in one of its fastest debt spirals it is going to take a generation to balance the books. The table below shows the only comparable gap in GDP vs. debt… war.
How we move forward we don’t yet know. The chancellor’s budget keeps getting postponed and understandably so. How can you plan for an ongoing pandemic that affects and cripples a whole nation without any sign of abatement or a known cure?
There are ultimately winners and losers which only seek to increase the rich poor divide. Focussing on the losers, those on national minimum wage working in retail, hospitality and leisure have no certainty over their jobs. Likewise their employers have extreme uncertainty over the future of their businesses. But as you can see from the graph below we do bounce back.
The whole of the UK will need to come together to eliminate our debt pile via a possible mix of tax rises and spending cuts; we don’t yet know how steep of for how long these will be. A similar approach needs to be taken in business, finding new methods to market and sell your products or services whilst reducing overheads. Preserving cash when cash is king. If your business is facing uncertain times and you need to discuss plan A, B, C, D… then we’re here to help.
Please contact any of the BRI Business Recovery and Insolvency management team to discuss your options https://www.briuk.co.uk/contact/