UK Chancellor Rishi Sunak on Friday said Britain's economy was well-placed to make a quick recovery as new statistics revealed a shrinkage of a record 20.4 per cent as a result of the coronavirus lockdown.
The finance minister said the "lifeline" measures he had put in place, such as a scheme to help companies pay the wages of some of its staff as well as loan schemes, will help the economy bounce back to normal.
Sunak was reacting to the latest Office for National Statistics (ONS) figures which revealed the "historic" fall in the country's gross domestic product (GDP), which has left no sector of the UK economy untouched.
"In line with many other economies around the world, coronavirus is having a severe impact on our economy,” he said.
"The lifelines we've provided with our furlough scheme, grants, loans and tax cuts have protected thousands of businesses and millions of jobs – giving us the best chance of recovering quickly as the economy reopens," Sunak said.
"We''ve set out our plan to gradually and safely reopen the economy. Next week, more shops on the High Street will be able to open again as we start to get our lives a little bit more back to normal," the minister added.
The ONS also published figures for the three months from February to April, which showed a decline of 10.4 per cent, with carmakers and housebuilders particularly badly hit.
"April's fall in GDP is the biggest the UK has ever seen, more than three times larger than last month and almost 10 times larger than the steepest pre-COVID-19 fall," said Jonathan Athow, deputy national statistician for economic statistics at the ONS.
"Virtually all areas of the economy were hit, with pubs, education, health and car sales all giving the biggest contributions to this historic fall," he said.
Meanwhile, latest figures released by the UK''s Treasury department this week revealed that Sunak's schemes, such as the Coronavirus Jobs Retention (CJRS) and the Self-Employment Income Support Schemes (SEISS), had a major uptake across all regions of the UK.
Under the CJRS, up until May 31 more than 6.4 million jobs were effectively saved by the furlough or forced leave scheme in England, with more than 628,000 jobs furloughed in Scotland, 316,500 in Wales and nearly 212,000 in Northern Ireland.
"Our unprecedented coronavirus support schemes are protecting millions of vital jobs and businesses across the whole of the United Kingdom – and will help ensure we recover from this outbreak as swiftly as possible," Sunak said.
"We have extended both schemes so they will continue to provide measured support across the UK as we start to reopen the economy," he said.
The CJRS scheme will continue to support jobs until the end of October, with flexible part-time furloughing beginning in July to support businesses as the economy is carefully reopened. The SEISS scheme has also been extended with those eligible able to claim a second and final grant in August.
However, some economists fear that the worst is yet to come and expect an even bigger economic slump in the April-June quarter, possibly plunging the UK into a deep recession.
Tej Parikh, chief economist at the Institute of Directors (IoD), said coronavirus had caused "unparalleled" economic turmoil which was "likely to scar the UK economy for some time yet".
"Having provided businesses life support, the government must now figure out how to stimulate activity," he said.
UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.
Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.
“We’re excited to bring Kings Court Hotel into our portfolio as our first Warwickshire acquisition,” said Saluja. “It has a solid foundation and loyal customer base. We see potential to develop the hotel while preserving its heritage.”
The West Midlands hotel, on a 4.2-acre site between Alcester and Redditch, began as a 17th-century farmhouse and now operates as a hospitality business with public areas, event and conference facilities and wedding capacity for up to 130 guests.
The hotel’s previous owner said Kings Court had been central to their work for over 30 years.
“It’s been a privilege to grow it into what it is today,” the owner said. “As we retire, we’re pleased to see it pass to a new owner who shares our commitment to hospitality and has a vision for its future.”
“The sale of Kings Court Hotel drew strong interest due to its size, location and trading performance,” said Josh Sullivan and Peter Brunt of Colliers International UK. “We’re pleased to have completed the transaction with Nanak Hotels and look forward to seeing how they develop the asset.”
In February, UK-based Shiva Hotels, led by founder and CEO Rishi Sachdev, secured $372m (£289m) to renovate The BoTree in Marylebone, London. Separately, Indian tech firm Oyo announced a $62m (£48m), three-year plan to expand its UK hotel portfolio by acquiring inventory and securing leasehold and management contracts, supporting 1,000 jobs.
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PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.
The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.
She has been appointed for a five-year term and will also join the HUL board, subject to necessary approvals. She will continue to be a member of the Unilever Leadership Executive.
Nair began her career with HUL in 1995 and has held various roles across sales and marketing in the company’s Home Care, Beauty & Wellbeing, and Personal Care businesses.
Between 2014 and 2020, she served as executive director, Home Care and later as executive director, Beauty & Personal Care from 2020 to 2022. She then moved to a global role as the chief marketing officer for Beauty & Wellbeing at Unilever, and in 2023, was named president of the business.
Under her leadership, the Beauty & Wellbeing division has grown into a more than £10 billion global business covering hair care, skin care, prestige beauty, and health and wellbeing, including vitamins, minerals and supplements.
She has overseen brand building, innovation, revenue growth, digital transformation, and profit delivery.
Speaking on her appointment, HUL chairman Nitin Paranjpe said, “Priya has had an outstanding career in HUL and Unilever. I am certain that with her deep understanding of the Indian market and excellent track record, Priya will take HUL to the next level of performance.”
Nair’s appointment comes after Jawa’s two-year term, during which the company focused on volume-led growth. “On behalf of the Board of HUL, I would like to thank Rohit for leading the business through tough market conditions and strengthening its foundations for success,” Paranjpe added.
Over her 28-year career, Nair has built and managed several leading consumer brands. She is recognised for turning around underperforming businesses and leading cross-functional teams.
The Indian executive has also served as an independent director on the board of a publicly listed Indian company, a board member of the Advertising Standards Council of India (ASCI), and a member of several government-backed partnerships and industry bodies.
Nair currently lives in London with her husband and daughter.
(with inputs from PTI)
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The bank's commitment to green lending reflects focus on sustainability (Photo: Getty Images)
BANKING major State Bank of India (UK) has cut interest rates on its buy-to-let mortgage products to help landlords reduce borrowing costs.
The bank said the rate cuts would help landlords invest in rental properties and meet growing demand for rental homes across the UK.
For the Standard Product Range, interest rates have been reduced by up to 35 basis points across all Loan-to-Value (LTV) tiers for five-year fixed-term products. In the SPV Product Range, rates have been cut by up to 40 basis points. Additionally, a flat fee has been introduced on larger loans for limited companies, aiming to simplify the lending process, a statement said.
The Houses in multiple occupation (HMO) product range has seen significant improvements. Rates have been reduced by up to 90 basis points on two-year fixed products and up to 50 basis points on five-year fixed products. Non-green properties now benefit from a flat rate of 5.15 per cent for five-year terms.
Fees for five-year products have also been lowered to 1.50 per cent for 50 per cent and 65 per cent LTV. Furthermore, green properties receive an additional discount of 10 basis points. Also, pricing for Multi-Unit Freehold Blocks (MUFB) has been brought in line with the HMO product range, offering similar rate reductions and terms.
Abhishek Sahay, chief business officer at SBI UK, said the bank wanted to support landlords with better lending deals.
"We understand the importance of service standards and have added capacity to our underwriting team to process applications in a timely manner," he said. "We recognise the crucial role landlords play in the UK housing ecosystem, and these rate reductions are designed to help them thrive in a dynamic market."
He added that the bank's ongoing commitment to green lending reflects focus on sustainability and reduction in the carbon footprint of the housing sector.
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Starlink will next need to acquire spectrum from the government, build ground infrastructure, and carry out testing and trials to meet the agreed security requirements. (Photo: Reuters)
INDIA’s space regulator on Wednesday granted Starlink a licence to begin commercial operations in the country, removing the final regulatory barrier for the satellite internet provider.
The company, led by Elon Musk, has been waiting since 2022 for licences to start operations in India. It received an initial approval last month from India’s telecom ministry and was waiting for clearance from the space regulator.
The licence, issued by the Indian National Space Promotion and Authorization Centre (IN-SPACe), is valid for five years.
Earlier on Wednesday, Reuters reported, citing sources, that Starlink had secured the licence from IN-SPACe.
Starlink is now the third company to receive approval to enter the Indian satellite communications market. India has previously cleared applications from Eutelsat’s OneWeb and Reliance Jio.
The company will next need to acquire spectrum from the government, build ground infrastructure, and carry out testing and trials to meet the agreed security requirements.
Musk and Reliance Jio’s Mukesh Ambani had disagreed for several months over how spectrum should be allocated for satellite services. The Indian government later supported Musk’s position that spectrum should be assigned, not auctioned.
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