Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

Pandemic business borrowing expected to hit £60bn

by
February 8, 2021
in Politics News
0
Pandemic business borrowing expected to hit £60bn
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Companies will have borrowed more than £60 billion to help them to survive the pandemic by the end of this year, according to forecasts that lay bare the precarious state of corporate Britain’s finances.

Net lending to non-financial firms jumped to £35.5 billion last year, from a net £8.8 billion in 2019, as companies tried to secure emergency government-guaranteed loans from banks, the EY Item Club has found.

The debt burden is set to rise still further. The EY Item Club forecast that bank lending to businesses, including through the government schemes, would increase by 5.4 per cent this year, which equates to an extra £26 billion net of repayments.

Many companies have had to borrow to shore up their finances during the Covid-19 outbreak and the provision of state-backed debt through commercial lenders has been at the heart of government measures to aid the economy. However, there are fears that many small and medium-sized businesses have taken on debt they will struggle to repay, inflicting loan losses on banks.

It emerged last week that the Treasury will give the 1.4 million small businesses that have borrowed almost £45 billion through the bounce back loan scheme the option to stretch repayments over a longer period to relieve the pressure on their finances.

Anna Anthony, UK financial services managing partner at EY, said: “By the end of this year, businesses will have borrowed in the region of £60 billion net since the start of the pandemic, which is a colossal amount, especially as for many it is just about survival, not expansion or growth. And the prospect of some, if not many firms, not being able make the required repayments is concerning for all involved.”

At the same time, Britain’s banks face a slowdown in consumer borrowing as households that have not suffered from job losses during the pandemic curtail spending during lockdowns, boosting savings. Many borrowers have used their space cash to repay debts.

The EY Item Club said that net lending through personal loans and credit cards declined by 9.9 per cent last year, the biggest fall since records started in 1994, and went negative. About £3.9 billion of consumer credit was repaid during the final quarter of last year, while households’ bank deposits surged by £141 billion between March and December, compared with £42.5 billion in the same period a year earlier.

ShareTweetPin

Related Posts

‘Mona Lisa’ racing car sells for a record breaking £115m
Politics News

‘Mona Lisa’ racing car sells for a record breaking £115m

May 20, 2022
Concerns surrounding UK Government data skills and technology infrastructure remain
Politics News

Concerns surrounding UK Government data skills and technology infrastructure remain

May 20, 2022
Huge gains of wealthiest Brits should be taxed more to help households with cost of living crisis
Politics News

Huge gains of wealthiest Brits should be taxed more to help households with cost of living crisis

May 20, 2022
Sainsbury’s and Marks & Spencer clash over online tax plans
Politics News

Sainsbury’s and Marks & Spencer clash over online tax plans

May 20, 2022
Executive pay system is broken, says Church of England’s pension board
Politics News

Executive pay system is broken, says Church of England’s pension board

May 20, 2022
Cornish pub receives framed apology from Vogue publisher after name row
Politics News

Cornish pub receives framed apology from Vogue publisher after name row

May 20, 2022
Next Post
Hyundai, Kia say Apple car deal now off, see $8.5 billion wiped off market value

Hyundai, Kia say Apple car deal now off, see $8.5 billion wiped off market value

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Filinvest Land raises P8B from bonds

Filinvest Land raises P8B from bonds

November 18, 2020

Omicron sets back airline industry’s recovery hopes

December 8, 2021
Microsoft talks to buy TikTok’s U.S. operations spark ire in China

Microsoft talks to buy TikTok’s U.S. operations spark ire in China

August 3, 2020

Getting to Know You: James Novello, Life and Resilience Coach

April 10, 2022
Chipotle to pay $25 million related to food borne illness outbreaks: Justice Department

Chipotle to pay $25 million related to food borne illness outbreaks: Justice Department

April 21, 2020

Amazon is to close all of its physical bookshops and 4-star stores

March 3, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.