- Coronavirus is killing UK businesses.
And today, Rishi Sunak,
the Chancellor of the Exchequer has given us an update
on what he's gonna do to save UK businesses.
Coupled with that, the Bank of England
has pumped 150 billion pounds of quantitative easing,
that's process of printing money,
and shoving it in the economy to help people get through.
I'm gonna discuss what happened in the update today.
So in turn, you can save, grow, build your business.
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Well now I'm going through this Rishi Sunak update.
If there's anything that you need clarification on,
or you've got your own point of view,
hit them in the comments below
because I think that gives clarity to how the viewers
of the channel together we can start a conversation
because this is tough stuff that we've never done before.
Let's go.
Right gang, let's talk about this and let me try
and demystify what's going on here.
I'm sorry that we're going into this bloody second lockdown.
I feel for so many businesses that are on the edge now.
And how can I do this for another six looming months.
I wanna break this video down into two real parts,
what's happened now and what I think
the Chancellor's gonna do in the future,
sort of post-March.
My predictions of what's gonna happen, an eye on what's next
but let's look at what's happened right now.
The Bank of England have increased their printing of money,
their quantitative easing by 150 billion pounds.
They've now got 875 billion pounds worth
of quantitative easing inside the UK economy.
That's just 125 billion pounds away from a trillion pounds.
We've got a furlough now till March.
I know most furlough was coming to an end
at the end of October, and we was gonna replace it
with the JRS scheme, the job retention scheme
and lots of businesses like me were planning
on getting our grant of a thousand pounds per employee,
January stroke, February, if we keep people on
and we were cash flowing
that for us was about 350,000 pounds.
If you kept everyone on after furlough for three months
the government were gonna give
you a thousand pounds bonus per employee,
as a way of retaining employees for us,
that was 350,000 pounds.
They've now said that that's gonna be kicked
the can down the road on that one.
So we won't be getting that bonus of cash in February.
I've also been dealt another blow this week.
We was expecting half a million pounds worth
of insurance from our insurers for lockdown one.
We have now been told we haven't got a cat's hell
in chance of getting any of that money.
It's quite a gloomy summary from the Chancellor.
I think he's allowing furlough to go now
to the end of March at 80%
All employees have got to do is say oh that's quite a lot.
We've gotta put the pension in
and the national insurance contributions in,
which is still a lot of money for us.
That can be 25,000 pounds a month.
And if your income tap is turned off, how do you cope?
Well, you've gotts borrow more money.
You've gotta do more CBILs.
You've gotta do more BBLs.
He's extending the CBILs and BBLs loan scheme.
You can now pay that over 10 years rather than
the initial six years that was touted.
Part my predictions that I'll do in a minute
about what's gonna happen with those.
There's quite a gloomy summary really from our Chancellor
and the Bank of England and all of the economic watchdogs.
If you like the CBI, those types of people.
We are in for a very, very tough time.
Feel sad in saying this because I keep
on telling entrepreneurs and business owners
that we will get through this.
And I know that we will get through this
but every time we get another knock like this,
another lockdown,
people's energy, effort, enthusiasm to keep on going
is getting to be more and more suppressed,
but we have gotta keep going.
We've got to make sure
that we find a way of pivoting our businesses.
We got locked down yesterday and our online sales
for our farm shop went up 300% in one day.
In one day, people are ordering stuff in our Christmas shop
and our farm shop doing click and collect.
You know, people, the economy is already pivoting
the money is already pivoting.
And you've got to find a way of getting into that.
Let's talk about what I think's gonna happen next
in terms of Rishi Sunak.
What's gonna be his next economic play of hand of cards,
if you like, and what that means to your business.
Chancellor Exchequer has got to get this economy moving.
And I've been comforted seeing in my businesses actually
how much people want to spend money.
And I think we always need to remember the same amount
of money exists in the world.
It just stays in people's pockets
a bit longer during an economic downturn.
Money hasn't disappeared and you need to keep that
in your mindset so that you can get through this.
Now, my predictions are more people are gonna be working
at home for longer.
And I predict that city centers,
especially cities like London, Manchester, Birmingham,
are gonna have less people going into the office
and more people are gonna be working at home.
And that we are gonna still see the exodus
of people leaving cities to out of town,
villages and country houses.
And I see more people working from home and a rise
in people trying to get hold of that sort of real estate.
And so I think that's gonna do very well.
The property market has been very resilient.
In fact, more than resilient, very,
very strong through lockdown one
as people are looking to move.
You know, if they're saving themselves five
to 8,000 pounds a year on commuting fees,
they're wanting to put that five to 8,000 pounds
into a mortgage and the evidence,
the amount of people are moving
and taking up bigger mortgages, et cetera, et cetera.
We're seeing that happen and here's another thing,
we have seen the fastest pay-down
of credit card debt since records began.
So people are paying down credit card debt.
They're not doing expensive commuting, et cetera, et cetera.
So I think all of that cash is probably gonna go
into the housing market as people look
to extend their homes, great home offices, (coughs)
get out of town.
So that's good for manufacturing
and for the housing markets
so I see that still being resilient.
Now, I do think now the Chancellor is gonna be looking
at extension of help, but on a sector by sector basis
because supermarkets that got business rates holidays
in lockdown one,
I can't see them ever giving business rates holidays again
for supermarkets that have taken more money
than they've ever taken.
And I don't think
that we're gonna get business rates holidays
for sectors that are doing really well
but hospitality and leisure and non essential retail,
I can see the business rates holiday that ends
in March, 2021 being extended again by up
to another year and a complete shakedown of that system.
So I can see a huge, huge, huge shift in business rate.
Rent protections for non-essential retail,
hospitality, and leisure, that all came to the end
at the end of September.
If you own a restaurant, November and December
is when you make most of your money compared
to the whole year.
I know you flirt with Valentine's day and mother's day
but holding a restaurant and a bar and a leisure business
in November and December is critical to the profitability
and the sustainability of your business.
I think that's gone.
So I think we're going to see help a help sector
in that section and rent protections for that section,
and maybe even grants
towards some of those rents that they owe landlords.
I'm hoping for that.
And I've seen that happen in other countries.
So a lot of the evidence that I'm giving here
is all I've seen happening in other countries,
so stamp duty help.
Where no stamp duty is paid for that for the first half
a million pounds on property.
I can see that being extended past March
to keep the property market moving forward
HMRC payment plans.
There is already help if you wanna defer your tax
because you've had no, especially if you're self employed
and you're using your tax money to live.
I heard a really lovely gentleman who's never on the radio.
He's got a picture framing business.
He sells all of his pictures at events and he's used all
of his tax money to live because he wasn't eligible
for any self-employed grants but HMRC
are giving him time to pay.
And I think more and more opportunity to pay your tax
will be deferred more than it is now
because otherwise people are just gonna do it.
The loan schemes, CBILs and BBLs,
they're gonna be extended, they're gonna be more generous.
In my opinion, this is all my opinion
that needs to happen to save jobs.
Hospitality and leisure grants,
I don't think we're gonna get loads of grants.
Wholesale, but on a sector by sector basis
if those companies can't continue to trade.
And I think, if I was the Chancellor Exchequer
and I was in that position,
I would be now creating incentive plans
to encourage people to invest
cause you know what I said at the middle of this video is
that the same amount of money exists in the world
and there is plenty of people right now
that have got bundles of cash, pension funds,
venture capitalists, and high net worth individuals.
What they're gonna be doing right now
is they're gonna be thinking,
hm we're gonna have huge tax rises in the future to pay
for all the stuff that we know that's going on right now.
And what the Chancellor Exchequer needs to do
is incentivize those people and say,
"Look, I'll do a contract, a deal with you that
"if you start investing your cash back into our economy,
"which is gonna drive jobs, economic growth,
"et cetera, et cetera, then these are
"the incentives I'm about to offer you."
But he needs to lay what those incentives are now
so that people don't hold on to their cash too much
and get that cash flushing through the economy,
which encourages spending, encourages investment,
encourages manufacturing, et cetera, et cetera.
They're just my opinions.
Guys, this is going to be a very tough time.
I thought we was getting out of this, you know,
I thought right, October, furlough ends.
I can't believe we've gone into another blooming lockdown.
I just cannot believe it, guys.
I don't agree with a full wholesale lockdown.
And we found out that the government had put us
into lockdown based on modeling rather than evidence.
Now, the evidence might come out and that be the case.
But if you're gonna ruin people's livelihoods
and kill businesses, and this is gonna kill businesses,
I think they should have really looked
at evidence rather than modeling.
It's just my opinion.
Of course, I care about people's lives.
I know this is a very serious disease
but we have got to find a way to live with this.
If we continue having continual lock downs,
people's livelihoods and lives will be lost
that I think will far outweigh whatever Coronavirus can do.
I'm James Sinclair, passionate about helping
you grow your business, really passionate about it, guys.
So please subscribe to the channel.
Hit that notification bell and check out my last video.
The headline was No, no, no,
please, not another second lockdown, if you haven't checked
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See ya in the next video.
(upbeat music)