Contemporary Business Environment: Economic Consequences of Covid-19, Government Response, and Lloyds Implications on UK Economy

This report discusses the impact of Covid-19 on the UK economy, the government's response, and the implications of Lloyds on the UK economy. It also evaluates the impact of Brexit on the UK's economy in different sectors and growth. The report highlights the increase in unemployment, financial well-being, and decrease in customer purchasing power due to Covid-19. The report also discusses the policies adopted by the UK government and Lloyds to mitigate the impact of Covid-19. The report concludes with the economic implications of Covid-19 and Lloyds' major responses and their implications on the UK economy.

Contemporary Business
Environment
Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Main economic consequence of the Covid-19 on the UK economy...........................................1
Economics response of UK’s Government and their implication process..................................2
Major response of Lloyds and their implication to the UK based economy...............................6
Impact of Brexit on the UK’s Economy......................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The term contemporary business environment is belongs to the environment which
relates to similar period of time and having a better understanding in the vast competitive at
every level. It will be helpful for become most competitive changes at very pace and make
owners in different business to eligible to understand the requirement that needed to be required
in more effective manner (Albonico, Mladenov and Sharma, 2020). It also encompasses all those
factors that affect a company's operation and includes customers, competitors, stakeholders,
suppliers, and industry trends. The overall development of the economy help to the country in
different sector which provide a brief management process in applicable manner. But due to
actual Covid-19 on the UK economic system along with the major economical responses of the
government and their economic impact in Covid-19. For this report, the banking company
Lloyds Banking Group is a British financial instituted formed of HBOS by Lloyds services
organisation. This reports highlight the various necessary responses of the Lloyds and their
implication to the UK's economy. Furthermore, the impacts of Brexit on the UK's economy are
evaluated in different sectors and growth in economy.
MAIN BODY
Main economic consequence of the Covid-19 on the UK economy
 Increase of unemployment – Unemployment refers to those individuals who are not
doing job or are unable to find job. Covid creates a great impact on employment because
mostly employees are terminated from jobs due covid positive cases. Due to current job
crises unemployment is still rising (Alradhawi, Shubber and Ali., 2020). Due to covid
scenario organization initiated various new recruitment policies regarding hiring of new
candidate in organization. In context to lloyds banking group, management are
responsible to increase and execute the job opening properly. This job openings helped to
increase employment rate in organization.
 Financial well-being – Due to covid 19 financial situation get highly disturbed and
inflation get highly increased. In inflation the prices of grocery and household items are
highly increased. Due to increase in prices employees face many difficulties for fulfilling
their basic needs. For solving this all types of problems it is necessary for organization to
to prepare proper financial strategies for employees. In context to Iloyds banking group,
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management are responsible for provide proper packages to employees according to their
job. This strategy also maintain employee satisfaction.
 Decrease in customer purchasing power – Purchasing power by consumers was highly
decreased due to covid. Because in covid times lock down strategy was implemented by
government. Then due to lock down consumers are not able to come to organization for
availing the services. This strategy creates strong barriers and created negative
relationship between organization and customers (Chen, Yang and Shrestha,, 2020).
Because services are highly decreased at that time. In context to Iloyds banking group,
management must initiate effective strategies for maintaining strong relationship
consumers.
 Policy adoption techniques: Many of the government banks are able to adopt techniques
and provide different policies which are helpful to banks for mitigate the impact. After
the outbreak of pandemic, UK economy has majorly fluctuate in different factors and
announced by the different business sectors and growth in co-working abilities. There are
different financial and effective business workers are able to achieve higher support
techniques and make growth in businesses, workers and different public pandemic to
make economic uncertainties in the business environment.
 Decline of GDP: This is majorly affected for the growth in different challenge in UK
economy. It is needed to be considers to work and make a setup in analysing the
technique and achieve higher failed sectors due to Covid-19 impact. This will be related
to the declining GDP if the company and it will reduced the impact of 25% in April
(Chronopoulos, Lukas and Wilson,, 2020). The impact of this pandemic on the Lloyds
bank is that they are not able to assess and manage their platform for the successive
growth in managing entertainment, finical and different travelling industry. After
recovering powerfully from the economic system and different profitable growth. It is
important to appear slow in the fiscal year of 2021 to analysed that the explosion has
been risen over in 2021,
Economics response of UK’s Government and their implication process
The economical impacts of the Coronavirus on UK has been majorly turbulent to affecting
almost all the sphere on which economic system organized. Through the drastic impact of Covid
in United Kingdom it has make drastic impact through which global effects. Many people loose
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their jobs and health system get demolished to create with more implication to generate
unproductive outcomes. The impact of Covid-19 which has been reportedly affected and make
almost all the changes which are helpful for generalised the statement by disrupting the global
supply chain in different factors and growth in international banking system. It is considered that
the use of effective challenges and achieve higher platform for managing and implementing the
number of dramatic changes. This will be helpful for the Lloyds bank to make a critical
economic contraction for the first three quarters of lock down in 2020.With the increasing
number of COVID cases in UK reduced the minimum level which resulted massive fall in
growth of GDP as well as other economic disruption. Through overall contribution in the down
fall of whole economic system. The government of UK is provide a significant growth in playing
to achieve economy effectively and provide a significant growth in measuring the impact of
Covid-19. There are some major challenges that help the UK economy to provide accordance
with the economy process. As further UK faces implication of economic which is impinging of
Brexit on the UK system that would worsened in the longer period of time. For UK GDP is plays
an important where both Brexit and pandemic would have creates more decreasing the shortages
product for business and some scarcity of different mechanism related to business and some
empty shelves for customers. Supply chains issues has led to the authorities granting short term
sanction to EU person across the definite including pulling commercial enterprise. The UK
government has assured consumers that turkey will be available for the festive is as normal as it
can be but warned shortages are likely due to a shortage of seasonal overseas workers.
There are different fiscal responses which are taken by UK’s government which are
followed in the economy of the government:
 Tax Disbursement helps in measures and taken to help out families of UK and families
who have been majorly impressed by the way get down of additional financial support of
NHS, charities and public services organisation etc.
 Banks have also used to make an order to complete the need of credit for the business in
UK and provide a growth in household to bridge the gap which created because of gap.
 These policies helps in also make measure which has been taken to make step for support
local and large business to generate more business as well as property tax holidays. This
make a direct grant of loans for the small sector firm to improve employee contentment
and employee keeping.
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 UK government provides their helps to measure the strength to those assailable sectors
that has been related to make an impact on harshly hit by the pandemic by providing
them better pay or salary. This has been majorly make an impact on different sectors and
growth which has been done to improve different motivation and other factors to
complete work effectively.
 In perspective of Lloyds Banking Group, make their guidelines of pandemic where to
mitigate the risk from the market (Crossley., Fisher and Low, 2021). In this, recession
and inflation this would difficult to generate investment and allocation of funds to
generate more productivity of market.
 Many other policies which are opted by the UK government is to provide an effective
additional incentives. That are helpful for many banks to support the businesses and local
people of UK and make more effective approaches in different downturns. It would be
helpful for the companies and management to achieve components in major challenges.
There were different measures taken by the government in response to Covid-19 are mentioned
below:
 Diminution in bank rates: It is majorly make a response for UK government to reduce
the bank rate effectively. There are different loans which are helpful for the SME
organisation to achieve overall purpose of the business activities. It is done to help the
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Illustration 1: Coronavirus: Economic impact, 2021

business furthermore to makes more consumer tackle the difficulties financial scarcity.
With the help reduced bank rates similarly Lloyds Banking company where the
availability of commercial enterprise improved which make it easy for the general public
to access it effectual.
 Treating customer reasonably: In responses to the high situation of pandemic, the
authorities made sure that all the bank treats all its people without disagreement coming
in between. They are closely monitored and achieve that all banking business that follows
the guidelines without any excuses, (McConn-Palfreyman Williams, and Lovell, 2020).
It is basically done to supply equal chance to customized who need funds to cope with the
difficult state of affairs of economics ruination because of Covid-19. On the perspective
of Lloyds Banking have provided the overall services where customer can easily attain
more banking outcomes generates with better positive outcomes.
 Employment related measure: This is helpful for the UK government to work and
achieve higher level of efficiency and achieve different job retention process and schemes
to help the people. It is considered to achieve higher level of workforce planning and
make outbreak of Covid-19 to help and employed to make a started process for make
functioning and make eligible candidates. It is helpful for the company to work and
achieve higher level of practices in different scenario and development.
Economic implications
 Overall, the UK economic system has been majorly impressed through serve economical
shock because of having a high eruption of Covid-19. With all the leading steps that has
been taken working through the government and get effective practices for the country of
economic system that make them back on track. The economy which is having in UK that
been gradually opened.
 There are numerous polices announced through government and that bank of England
aim of business. In regard to this, UK government try to majorly purpose where at strong
improvement and in accord with all effectual handling process by the government. The
UK government policies where the country can easily mitigate the negative economic
aspect to transaction with financial condition situation. All these policies have been
enforced as when through with economy.
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 The implementation of overall policies as where the economy try to recover of tax
revenue. Therefore, the disbursement on family and business has been done to support
directly and make growth in major sectors. Thus, to measurement are undertaken indeed
to keep the concern organisation on course as many group are economical employed
effectual.
 This would finally support business concern workers and the broad public would get
rigging of having chances of safety.
Major response of Lloyds and their implication to the UK based economy
As on the front line of combatting the challenges of Covid-19 refers to the extraordinary
efforts of NHS health professionals, carers, and volunteers within the UK. In perspective of Bank
of England where the role’s to help the business and household manage through economic
shocks that can raise more sharp and large temporary (Jallow and Suresh,., 2020). The bank’s is
having three related policy on the UK households manage done an economic impact that could
prove measurement the UK business and household bridge across the economic disruption that is
likely to be associated with better Covid-19, According to these measures will help sustenance
firm in enterprise and people in jobs and help to prevent a transitory disruption from causing
related to economic harm by not getting jobs and other benefits such as economic benefits that
can cause more further implication.
 UK government try to determines with different building of resilient financial scheme
which mainly focus on financial stability. It will further helpful in the country in order to
fighting with the break caused by Covid-19. They seeking for assure the public that they
are having strong fiscal position help them out to providing business enterprise
supporting in more efficient ways.
 There is another factor financial support government besides came up with self employ
with different scheme that government helps. It has been assured on the basis of business
where passively trading before of epidemic. But this issue can be faced and hinder the
demand effective supply after Covid-19. It was also stated in this strategy that is
circumstantial amount will also beingness given in order to effectual business rehearse.
 Through high prepared of Covid-19 create major risky assets commodity prices sharply.
In government bond output reached all time accordant with marked impairment in hazard
appetite in the outlooks through better global and UK development and growth.
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 The bank is offering to build club and try to make long-term funding at antithetical
involvement rates or close to cause at 0.1% (Gibbons, Fernando, and Spedding, 2021).
This will brand reducing involvement rates for charging growing rate and effective
funding values. It will addition based on Banks lending side view and provide them extra
support for lending the SME companies.
 With the help of the property of the system shock from Covid-19 where it is having high
uncertain situation arises, as some of the activity likely change materially in the UK the
coming time period (Keogh-Brown, Edmunds. and Smith,., 2020). There are temporary,
but it creates important disruptions of indefinite quantity chains and weaker activity could
challenge where there is heavy cash flows and addition demand for short term credit
score from households and for on the job capital from institution. Such of these issues are
likely to be most subacute for smaller concern. This economical shock will affect both
supply and economic process.
 It will be accommodating for most difficult environment to give dividend to the rating
grouping. It will further helps in make prudent dividend for accumulated to paid out in
different process management and techniques. The main task of work of Lloyds to
achieve and make able to permanently reduce the regulative to make a placed in different
challenges (Our response to coronavirus (Covid), 2021).
Impact of Brexit on the UK’s Economy
According to the view of economic consideration for one of important to make an
economical impact to measure the government in different educational factors. It will be helpful
for considering to influence for Brexit leads for make significant changes in UK relationship.
This would be helpful for challenging in UK based different opportunities with deal negotiating
with Non-EU countries.
Current impact of Brexit on the UK economy development and growth:
 It is analysed that the bank is bale to make growth with appropriate development and
create an environment on the brexit of economy. It will be helpful for most challenging
and applying growth in long term impact with significant development in UK. As per the
view of national statistics and its development is helpful for growing inflation. Through
the use of Brexit in different activities are able to manage their core metric in different
channels.
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 The influence of Brexit presumes from different acts are associated for the growth of
economy and use across scope of core prosody that will include the growth of GDP in
significant level. Factors are highly considered for growing in household, disbursement,
and employment chance to provide growing in Brexit on the UK Economy (Malik,
AlDarrab and Edward., 2020). It is helpful in making different economics and major
sector that are associated towards the growth of UK Economic system. It would help the
economy to examine within the position of the UK and apply on the outcomes of the EU
are useful is considering where the prime changes which are helpful in technical progress
of different channels.
Future impact of Brexit on UK's economy:
With the help of economists to major forecasts the understanding of United Kingdom and
EU is to analyse an effective impact on the British Economy due to Brexit (Singh and Misra.,
2020). It is estimated on the upcoming year to adversely impact the economy associated to
Brexit. Most of the employers observe roughly 6.7% of the economy for make a deficit for
analysing the economic growth that is compared to the economic system. Furthermore, the
company is able to analyse and make systematic growth in addressing the challenge and provide
a significant growth in trading and higher volume in UK. It will further make a strong impact on
the Brexit and Covid-19 that is helpful for generalise the statement and trade for work effective
and analyse the statement in UK market. It will further helpful in producing negotiation and
make new policy system to achieve and make appropriate segment in major economical sectors.
CONCLUSION
From above contemporary business environment has summarized about the different
impact of COVID-19 which makes to influenced in UK economy where it makes the more
challenging to implication the business falls. For more economic responses of the United
Kingdom and their government stats some important regulation such as large to small business
would generate outcomes if guidelines were not followed.
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Chronopoulos, D.K., Lukas, M. and Wilson, J.O., 2020. Consumer spending responses to the
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Shaw, J.A. and Cooper, M.E., 2020. Contemporary management of heart failure in patients with
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Singh, A.K. and Misra, A., 2020. Impact of COVID-19 and comorbidities on health and
economics: Focus on developing countries and India. Diabetes & Metabolic Syndrome:
Clinical Research & Reviews, 14(6), pp.1625-1630.
Tubadji, A., Webber, D.J. and Boy, F.A., 2020. Cultural and economic discrimination by the
great leveller: the COVID-19 pandemic in the UK. Covid Economics: Vetted and Real-
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