The COVID-19 pandemic which shook the world in 2020 impacted not only global healthcare systems and travel but also resulted in unprecedented freefalls in share prices around the world.
As the world changed, propelling certain companies to success and leaving others on the brink of survival, the UK economy experienced its largest contraction in 300 years, shrinking by 9.9% in 2020.
The Bank of England has predicted that the UK economy is now set to enjoy its fastest growth in more than 70 years, and is expected to expand by 7.25% this year. This is partly attributable to extra government spending to help limit job losses. Andrew Bailey, the governor of the Bank of England, has likened this growth to “more of a bounce back” rather than an economic boom, confirming that the UK economy is expected to return to what it was in 2019.
Retailers re-opening
The recovery is expected in response to the re-opening of retail shops and high streets around the country, in anticipation of the largest surge of household spending since 1988. Following the success of the UK’s vaccination drive, the UK Government’s plans to stay on track and fully re-open the economy by June 2021 have been welcomed by consumers who have built up approximately £200 billion in extra savings during the pandemic.
Less Job Losses
Chancellor Rishi Sunak has extended the Coronavirus Job Retention Scheme (“furlough scheme”) until the end of September 2021, which is predicted to provide a “bridge of support that will last until the recovery is underway”, according to Mr Bailey. The Bank of England forecasts that the unemployment rate will peak at 5.5%, which is significantly lower than the original prediction of 7.5% in February 2021.
It is no surprise that the economic turmoil brought on by COVID-19 and resulting government lockdown policies have affected migrants such as Tier 1 Entrepreneurs, Innovators, and Sole Representatives of Overseas Businesses, who are all required to create jobs and operate businesses in the UK in order to satisfy the Immigration Rules. Whilst the Home Office has introduced some concessions to alleviate those businesses and migrants that have been affected by COVID-19, the re-opening of the UK economy promises confidence in a more sustained recovery.
At a time where economies around the world continue to slump, and where COVID-19 persists, the UK continues to be favoured by entrepreneurs and businesspeople and considered as lucrative and accessible. In addition, the UK government’s unique financial support schemes for workers and companies have allowed much-needed relief and support during the pandemic. It is notable that these schemes, including the furlough scheme, have not been made available in other countries to the same extent.
Gherson Immigration Team
Should you wish to discuss the prospect of relocating to the UK for work purposes, or if you have already been granted leave as a Tier 1 Entrepreneur, Innovator, Skilled Worker, or Sole Representative of an Overseas Business, please do not hesitate to contact us. Alternatively, follow us on Twitter to stay up to date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2021