Sample Business Studies Paper on Impact of COVID-19 government lockdown policy on UK Business

Impact of COVID-19 government lockdown policy on UK Business

Introduction

Creative decision-making refers to the ability to weigh the pros and cons of a situation and come up with a new solution. For example, new or better alternatives may be developed, a new technique could be introduced, or even a new product or service could be discovered. Creative and analytical decision-makers are more inclined to look at all available options when dealing with an issue or completing a task. A person’s concept may lead to another’s solution if they work together to come up with innovative solutions to problems. Everyone in the group may participate and innovate, enhancing team building and finding new solutions to challenges. Creative decision-making has a positive effect on productivity, progress, and innovation. Workers who are permitted to employ a range of problem-solving approaches rather than just the conventional or previously used ones are more likely to succeed in their jobs. Having the freedom to try a variety of techniques to accomplishing a task or solving a problem might lead to new ideas that can improve productivity. When individuals regard issues as opportunities for growth rather than problems, they are more likely to come up with creative solutions to their problems. A creative decision-making environment is needed to cultivate the idea that every proposal is worthy of consideration. This might have a positive impact on the mood of the company by making employees feel valued.

How COVID-19 government lockdown policies have impacted on UK Business

By the year 2022, COVID-19 will have invaded almost every nation on the planet, infecting well over 50 million people. Despite an environment of high uncertainty, governments are forced to make difficult choices in order to deal with the physical, economic, and social concerns that it raises. By the spring of 2022, more than half of the world’s population would have been impacted by severe containment measures, according to the United Nations. According to many economists, the coronavirus outbreak resulted in the most devastating economic disaster since World War II (Blauth et al., 2014). It seems unlikely that many economies would recover to their pre-crisis levels until 2022 or later at the earliest. Because of the possibility of a repetition in the autumn of 2022, there is growing uncertainty. There has never been a crisis of this magnitude before: the long-term ramifications on human capital, productivity, and behavior are likely to outlive the short-term shocks to health and the economy (Hayward, 2020). Due to the COVID crisis, existing trends like as digitization have seen an acceleration in their progression. Since the earthquake that rocked the world, a tsunami of change has been set in motion that might go many different routes.

Some places are more severely affected than others, and this has an influence on the health of the individuals who live in the affected areas. Large urban areas have been hit hard, but it is the poorest sections of those cities that have been hit the most, not the more wealthy sections. During the previous few months, certain countries have observed an upsurge in the number of persons infected by the illness   (Mahase, 2021). When it comes to deaths, rural areas that are not next to big cities, such as the United States, had the highest increase in October. The location of one’s residence has a considerable influence on the degree of risk that one is exposed to. Because of the geographically different effect on health, economy, social, and fiscal policies, an intergovernmental coordination effort that takes into account the disparities across regions is required. The Gross Domestic Product (GDP) of the United Kingdom was 25% lower in April 2020 than it had been in February of that year. As a consequence of the economy being more open in the spring and summer of 2020, economic activity surged throughout those months (Pugliese & Senna, 2018). There was a surge in Covid-19 instances, which was followed by an increase in lockdowns over the fall and winter months, with the effect being a decrease in economic activity. However, since consumers and businesses had become used to the closure over the previous year, the decline was substantially lesser than it had been during the first shutdown. A major rebound occurred in the spring and early summer of 2021, although the GDP was still 2% below pre-pandemic levels by July of that year.

During the first two weeks of october, 70% of employees in hotel and food services and 46% in construction had to take unpaid leave. During the same time period, 14% of water utility employees and 13% of ICT workers died. While numerous schools and institutions around the country have closed, most educators have kept their employment and been compensated. Our projection of job losses shows similar tendencies. 1.7 million retail and wholesale jobs, or 22% of total 7.6 million, are at risk. The need for labor in grocery, internet, and wholesale operations has increased the frequency of temporary store closures in nonfood retail (Tsalikis & Peralta, 2021). More than 1.2 million individuals in the hospitality and food service industries face job loss (see next section). Construction and transportation subsectors like airlines are also vulnerable. As McKinsey’s previous research on job loss reveals, there are only modest differences between these conclusions and their prior research. Before the Covid-19 lockdowns, over 20% of non-fuel retail sales were made online in the UK (Blauth et al., 2014). As a consequence, despite the sector’s size, fewer retail and wholesale employment are at risk. Notably, the healthcare and social support industry has the third-largest pool of at-risk workers in the US. Statistics from Europe and the UK show a lesser influence. Three factors combine to make some sectors more prone to job losses and furloughs in certain regions. Some jobs, like bartending or working at amusement parks, are unsafe due to direct interaction with other employees or the public. Certain sectors are under lockdown to avoid illness transmission. (Bozdo, 2021).

Possible solutions to the UK Business

Small and large businesses all throughout the world had to act fast and forcefully in response to the outbreak. As the economy continues to improve, now is the time for businesses to look for and take advantage of new opportunities. Doing a “after-action assessment” to collect data and insights to prioritize ways to increase firm value today and create future strategic resilience is a good idea after a pandemic has occurred. As greater certainty and stability return after COVID-19, businesses who take these steps now will be better positioned to grab those opportunities and flourish in their markets (Simmonds et al., 2019). However, a rebound in corporate investment will be largely dependent on what resources companies have available to finance investment, and how much of that money they are willing to put in capital equipment. Interest expenses will eat up more income and limit the company’s ability to borrow in the future if it emerges from the crisis with a high level of debt. It is possible that both of these things might have an effect on investment. However, the burden of corporate debt as a percentage of GDP was still lower than it was during the height of the financial crisis in 2020. As a result of the epidemic and government help, the business sector collected over £100 billion in ‘extra’ cash, which they were able to use to fund their operations. Consumer purchasing might be reinvigorated by people using their savings, just as corporations’ higher cash reserves could power a substantial upturn in investment. The following are some of the strategies that can be implemented by UK businesses together with the government in order to reduce the effects of Covid19:

Implementation of new tax breaks with some kinds of limitation

Taking advantage of the temporary “super-deduction” tax incentive announced in the March Budget, businesses will have a significant financial incentive to continue with profitable initiatives. The effect of the super-deduction, on the other hand, will be short-lived, and it will only apply to a small subset of investment, as previously stated (Vazquez-Vazquez et al., 2021). Small enterprises, as well as large organizations, will have less of an incentive effect as a result of this change. Therefore, the anticipated rise in the corporate tax rate in April 2023 will have a long-term effect on firm investment. For many years, corporate investment in the United Kingdom has lagged behind that of other major countries (Ropkins & Tate, 2021). However, there are now compelling grounds to believe that the epidemic may have provided the circumstances for a long-term recovery. However, the advantages in favor of increased investment by UK enterprises are counterbalanced by negative impacts such as natural caution as a result of recurrent economic shocks and the effects of globalization. In the end, sustaining a high level of economic confidence will be necessary for a sustained increase in corporate investment — and although this is likely to occur, it is by no means clear that it will occur.

As a consequence, new safety rules are required to clarify how each kind of physical space may be properly altered. Their creation included industrial groups, local governments, unions, the Health and Safety Executive, and Public Health England. The remedies will include prescribing facial covers in confined public settings, such as transportation, and placing harsher travel restrictions on overseas visitors, which may have been ineffective when the virus was prevalent enough to demand total house confinement.

The UK has a long history of creating new, sustainable business models. Increasing home working time has several advantages, including reducing the carbon footprint associated with commuting. For the foreseeable future, all employers and administrators of common spaces must be encouraged to generate innovative ideas. UKRI will consider proposals to assist minimize the effects of Ebola in the UK.

Rehab does not need forsaking all other plans. This data may help long-term planning and strategies based on a thorough analysis of local economic issues. You should start creating new plans and modifying old ones as soon as possible to provide your area and its residents the best chance of long-term recovery (Mahammed, 2020). In response to the pandemic’s sporadic nature, three national and two regional lockdowns have been implemented. You should have a long-term plan for recovery, not just a short-term one. As long as the pandemic’s path is unknown and certain limits persist, action must be taken. Towns require a flexible approach to transition between phases of recovery.

Optimism about the post-Covid recovery has bolstered business confidence in the United Kingdom, but businesses are worried about a skills shortage, which they anticipate will result in higher wages in the months ahead. According to the Lloyds Bank, business confidence increased in August of this year (Kashi & Franek, 2014). The reduction of lockdown limits and the reevaluation of self-isolation regulations helped to increase trust (Kumar et al., 2021). Overall, trust in the United Kingdom has increased in nine out of the twelve areas and nationalities polled, with the north-west reporting the greatest increase in confidence. Some businesses are hoping to reopen in September, when the Covid immunization has been widely disseminated around the country. Clientele has risen, which has resulted in increasing confidence in businesses such as pubs, restaurants, and hotels.

When the economy recovers to pre-pandemic levels, we may have reason to be optimistic “Hann-Ju Ho, of Lloyds Commercial Banking, shared his thoughts. According to the bank’s business barometer, consumer confidence in the United States increased by six percentage points in August. A six-point increase in economic confidence brought it to 38 percent, a three-month high. According to the findings of the survey, 7 percentage points more enterprises anticipate an increase in commercial activity in the next year (Bozdo, 2021). The economy of the United Kingdom grew in the second quarter when lockdown limitations were eased in the fight against Covid-19. The gross domestic product (GDP) declined by 4.4 percent in the fourth quarter of 2018 (K. I. Zubair, 2020). Employers surveyed by Lloyds want to hire new employees in August, which is the same percentage as the previous month’s forecast. Several restaurants and fast food companies, including McDonald’s and Nando’s, are suffering from a staffing shortage as a result of this (Pedauga et al., 2021). The current labor shortage in the United Kingdom is a result of Covid and post-Brexit immigration restrictions. In a survey conducted by Lloyds Barometer, one-third of employers said they expected compensation rises of at least 2% next year. Since the beginning of the investigation in 2018, the majority of employers have predicted wage rises of more than 3 percent each year.

Cases of Covid19 in UK

From March to May 2020, there was a lack of testing that could be done outside of the hospital. This meant that the number of confirmed cases was much lower than it should have been. Even deaths and hospitalizations caused by Covid-19 were not reported. When comprehensive testing started in late May of last year, confirmed cases became a more useful way to keep track of how the four countries were different. It’s important to note that testing capacity and program roll-out, like testing in schools, have an impact on the number of cases that are found. Measures were put in place from September to October to try and cut down on the second wave of cases, which ran from October 2020 to February 2021. When the “Kent” strain (later known as Alpha) started spreading in October, people started getting sick. The lockdown was lifted in January, and people started getting sick again.

Number of cases in UK also went up very quickly. In December, the number of cases reached a low point. During the first week of December, Wales put more restrictions on how people could use open fires. Lockdowns in early October and the slow spread of “Kent” in the north of the border kept case rates, hospital admissions, and deaths lower in Scotland than in other parts of the UK during this time (Pedauga et al., 2021). For the first time since July, the more infectious Delta form has taken the UK by storm. In the third wave of Covid’s spread, it was hard to keep track of because the demographics of patients changed and there were more cases in places that had done well in the past. Immunity levels after a vaccine and how many people have been infected in the past are likely to play a role in this. It started in December of last year, when health care workers, people who live in nursing homes, and people who are over the age of 80 started getting shots against the flu. In the third wave, people have changed how they act and how they mix with other people. Lockdowns were used to control the first and second waves, but after the third wave, there has been a decrease in control measures. This has happened at different rates around the country. Because of the conditions at work and at home, it’s not as clear why the first two waves of Covid had so many people who had it because of these things. As a result, recent months have seen a rise in the importance of social variables that are linked to more mixing.

This summer’s Euro 2020 football tournament came at the same time as a big rise in cases in UK and England in July, which coincided with a change in lockdown rules. In June, Scotland was kicked out of the World Cup. After that, the number of football-related cases in Scotland started to go down a lot (Pedauga et al., 2021). Nearly 10,000 incidents have been attributed to Wembley fans, but this is a very small fraction of the damage caused by huge crowds of people gathering in pubs, restaurants, and private homes to watch games during the tournament. At the end of August in UK, the number of cases went up a lot because more people left their homes and went to work. On September 6, it reached its peak. People in Wales saw a rise in the number of cases in September when schools started back up. That has now calmed down. During September, about 25,000 people in UK got sick every day. School-age children had more cases, but adults aged 20 to 29 saw less of a rise. In the past and early in the summer, more cases in England may have given them enough protection to avoid a spike in cases when schools started back up.

 

 

 

 

 

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