Evaluating the Contemporary Business Environment

This report evaluates the impact of COVID-19 and Ukraine War on the economy of United Kingdom. It suggests ways to mitigate the negative effects of war and pandemic. The report analyzes the impact of lockdown on the economy of United Kingdom and the ongoing Ukraine War on the country's economic conditions. It provides suggestions for the government of United Kingdom to mitigate the negative effects of war and recommendations for the Central Bank to remedy the adverse effects of the war.

Evaluating the
contemporary
business environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Understanding the Impact of the lockdown on the economy of United Kingdom.................3
Impact of the Ongoing Ukraine War on the United Kingdom’s economic conditions..........5
Suggestions for the government of United Kingdom to mitigate the negative effects of war6
Recommendations for the Central Bank to remedy the adverse effects of the war ..............8
CONCLUSION ...............................................................................................................................9
Recommendations............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The economy of the United Kingdom is identified by its complex and systematic
structures which help provide stability to the nation as a whole. Furthermore, the world has
identified it as a first world country, where every individual is aware about the various rules and
regulations which are applicable to the population (Bag and Pretorius, 2020). The following
report presents multiple necessary analysis of the situations which the nation was in during the
economic crises due to the COVID-19 pandemic and the lock down which was also restrained by
the government to control the cases related to the pandemic. Moreover, the influence which the
Ukraine War left on United Kingdom, has also been analysed, as the war nor only impacted
Ukraine but also the surrounding nations. By considering the short and long term effects of the
War on United Kingdom’s economy along with the central bank, the report helps suggest the
various ways through which the country can mitigate or if possible, avoid the effects of these
unfavourable conditions.
TASK
Understanding the Impact of the lockdown on the economy of United Kingdom
The impact of the COVID-19 pandemic on the economy of United Kingdom has been
largely disruptive due to the various ill-effects of the global pandemic, with its effect on the
financial markets, employment and a number of the industries and other shipping. The overall
impact of the pandemic has been evaluated through different statistics such as the death toll
which the country witnessed. The several individuals and groups began to raise funds to support
the most effected of groups such as people with lower income or those who are not financially
stable. The London Marathon, the world's largest annual one-day fundraising event, has been
postponed from April to October 2020. In 2019, £66.4 million was raised for charity in marathon
day, which also helped stabilized the conditions of the economy as a whole. During the month of
April, the multiple artists who are belonging to the United Kingdom, also participated in the
event named as “Together at Home”, which was identified as a live music event organized online
through various platforms. This was helpful in spreading awareness about the COVID-19 rules
and regulations which are proposed by the legislation and henceforth the government was able to
positively impact the economy of the United Kingdom (Bangwal and Tiwari, 2018).
Furthermore, the construction and property sites were also impacted by this pandemic

and as a result by the end of April 17, work had been halted on approximately 2000 United
Kingdom construction sites, the effects of the same could be visible on the nation’s workers who
had to create amends in their lives so as to positively influence the salaried along with the
business sector of the country. It is clear that the government of the United Kingdom made
necessary policies to support the masses during the lockdown, however there were various loop-
holes which were witnessed by the analysts and economists, in context to such policies and acts.
Such as the fact that the people of United Kingdom, opposed to the idea of the vaccination being
necessary and henceforth did not completely agreed to the various methods and procedures
which were applied by the legislation. Furthermore, the construction industry was severely
impacted by such pandemic, as mentioned beforehand, where declining construction activity has
affected material suppliers (Cop, Alola and Alola, 2020). Marshalls plc reported that sales had
fallen by 27% and was considering laying off 400 employees. And he reported on May 21 that
builder traders saw his first quarter sales drop 6.7% amid ongoing building materials shortages.
The food retail industry was also impacted by the pandemic and the statistics provided by the
various organizations, reveal that the retail industry was one of the most impacted by the
conditions prevailing the country and the sale of hand sanitizers along with the masks has also
been increased Online retailers reported consumers placing unusually large orders while the
managing director of the frozen food chain Iceland reported increased sales of package products
and other bulk buy options which were extremely popular during the pandemic and therefore
helped the population in tough times. Coming to the finance sector of the United Kingdom, the
governor of the Bank of England called out for the British Government to provide support to the
various types of businesses affected by such Pandemic and as a result decreased the overall
economic growth rate of the company. Furthermore, the hospitality and transportation sectors
were also impacted by the overall conditions of the country, due to the COVID-19 pandemic,
while the government aimed towards increasing equilibrium conditions in the economy, to
stabilize the business along with the household income of the nation. The transportation industry
was mostly shut down during this period, due to the government imposed rules and regulations
related to the restrictions proposed for the movement of goods or vehicles in the country as a
whole (Eldor, 2020)

Impact of the Ongoing Ukraine War on the United Kingdom’s economic conditions
The most prominent cause for the significant effects of the war on the economy of United
Kingdom is the direct links which they have with Russia. Furthermore, trade between the two
countries is small and insignificant as compared to the trade practices which United Kingdom
has with other countries. However, the invasion of Russia on Ukraine and the sanctions imposed
as a response by the United Kingdom as its allies could still impact the United Kingdom
economy. The Russia -Ukraine war has adversely affected the European unions. Many citizens
have left the country leads to the decreases in the human population. The exports by the Russian
has been halted or discontinued the various items like food items,fuels, oils,and metals. After the
halt in trade , the European economy has been almost in the crisis leads to the recession. The
growth has significantly decreased in other nearby nations also. The countries like Italy and
Germany are highly dependent on the oil and gas. They imports it from the Russia and because
of this they are stressed. There is a severe impact of war on the businesses and capitalistic across
the globe.
The most impacted country from the Ukraine Russia war is UK. It has affected all the
sectors of the UK like banking sector, farming sector ,etc. this leads to the inflation. This has
affected the smooth working of the FDIs(foreign direct investments), trade cycles like imports
and exports, uncertainty in the global business investments, supply of the products. It has
reduced the global GDP by several points . This has also affected the economical situations of
the underdeveloped countries. which has increased the inflation in the world. It has affected the
household incomes affected the lives of people. It reduced the standard of living, increase in the
unemployment rates , education of the students studying abroad has been suffered, and many
more (Gupta, Singh and Mangla, 2022). It has affected the consumption as it has slowed down. It
aggravates the stress, uncertainties, crisis and losing the hopes. Widening of the recession rate
has increased the complexities and reduced the global harmony. In the near future , there is no
hope of decreasing crises and increasing harmony. this is impacting the political situation also.
Different countries are forming different policies constantly to stabilise their economy. On the
other hand they are making amendments in the already formed policies according to the
changing environment. governments are continuously working to mitigate the factors that are
affecting the food and monetary crisis. It has leads to the increase in the cost of basic necessities.
They are trying to find out the substitutes of the traded items by making the country self reliant

(Hossain, Ng, Antwi-Afari and Amor, 2020). This will increases the job opportunities and reduce
the dependency on the other nations. Earlier, the UK government has not expected any food
crises before the Ukraine Russia war . It has motivated the farming sector as it exports the food
for the Ukrainians. This has increased the input costs like fertilisers, feeds of animals .it also
includes the cost of the energy. For the remedy of the war crises, government striked a support
management. This management ensures the budgeted, effective and executed costs for the food
and fuels. It has created the societal unrestlessness and depression in the nations across the globe.
UK supplies the necessities to meet the needs of the Ukrainians which ends in the shortfall of the
products. it is like to be continuos pressure which is spiking with global tensions (Keahey and
et.al, 2019).
Suggestions for the government of United Kingdom to mitigate the negative effects of war
Methods to delivering aid vary of their administrates ease, effectiveness and alignment
with another coverage objectives. To the point that electricity fee perpetually to remain
excessive, support should strike a control among effectiveness, budgetary and execution charges,
awareness at the most powerful requirements and making sure synergies with long term climate
modifications and energy safety goals. This controls restore or cap fee of energy low market
charges. All through they are surprisingly easy to operate they results in be untargeted and
benefit may generate inequality to big power clients who regularly have overflowing earning.
Europe undertaking can be to reconstruct an most economical strong Ukraine that encourage
refuges to return. Improvement wiped out system will want significant financing with an
important grant elements. Conception and relocation will help safety go back and scheme
increase to sure.
The execution of reforms to powerfulness to capableness group as properly as public
policy will growth the boom dividend of reconstruct. This could take some time and as an final
results some who led are in all likelihood to live in nearby nation for some time. Integration
measures in most cases ladies and youngsters into business into enterprise and status
establishment could be crucial. Target labour market strategy simply as ordinary salary subsides
to bonus hiring may help (Khan and et.al, 2019). So can also facilitating cranium
acknowledgment, giving communication schooling along with enjoyable requirements.
Participation that blunt expenses measure and damped incentives to demise fossil primarily
supported energy use need to be phased out in the course of making capability to better cope

with social unit exposure to price shocks and accelerating the development of options resources.
Governing authorities have focused hugely in cost manipulate that ends up in contribute instead
of decrease call for. Revenue allows calculation assertion for a few percent of the full values of
assist furnished through guidelines don't forget by means of the database. Authorities rolled out
majorly value aid calculates then step by step shifting to income support degree. The war in
Ukraine aggravated further increases in power values, that causes governing to once again
circulate to rate primarily based schemes, reversing the tradition the culture of a developing
proportion of earnings based regulations. Only a way mirror the connected ease with which
price assist steps may be administrated while urgent steps is required just as tax cutting can be
completed speedy (Lahane and Kant, 2021). Governing authorities have to offer an possibility of
jobs as it is important that investment into re training and competencies development will help
this example. These that have left for another countries will assist this situation. People who
have left for any other countries are inclined to return domestic as soon as it's miles at ease to
accomplish that. Mitigating the poor impact of the disaster on creation is critical because the
disaster has magnified broadly stated industry failures in innovation financing. Investment in
invention is now taken into consideration even more unstable and some of the long run
investments in new applications is specifically affected. Furthermore, stimulation evaluates offer
an chance to position to be had assets for innovation (drastically skilled labour) to true use. In
encouraging private funding in creation, care would be taken to ensure that authorities spending
offers appropriate price for cash; the less promising creation initiatives are among those deserted
first by means of the personal area and there's no reason to restore these with public money.
Regulations that may be taken into consideration on this context include:
 Concentrate public assist on promising studies and innovation stricken by the situation,
like as long-time period and volatile studies, studies performed by start ups, and
investigation addressing societal demanding situations (surroundings, growing old, and
many others.). Using existing technology and auto mobiles for assist can maximise the
fast time period effect (Luu, 2018).
 Properly-designed public-private partnerships can assist decorate the resilience of
investments in R&D over the enterprise cycle. One manner of success this could be via
adjusting the equality of public and private investment over the commercial enterprise
cycle. Such partnerships also can be used on the local or local level, e.g. in progressive

clusters, to ensuring that authorities budget attain new and small players, consequently
lowering the hazard of seize through “strong gamers”.
Recommendations for the Central Bank to remedy the adverse effects of the war
The conflict reverse of EU strong but uncompleted transformation from the COVID-19 ,
that left private form use of and investment nicely even ads economic and social aid
underpinned as fantastic rebound state nearly to stages remaining seen in advance the COVID.
Spiking electricity and food value at the moment are slicing broadly into family uses and
economic dangers is poised to conquer investments (Rahman, Ali, Moktadir and Kusi-Sarpong,
2020). Monetary policies need to stability containing inflation with the essential with the require
to restrict financial loss in output a good deal of the stress on costs is conducted by forces past
the management if important banks simply as stress to strength and food markets and supply
chain disruption. However economic policymakers in many nations must still the direction of
normalizing lending situation to help include inflation assumptions and anchor nearby drivers
of explosion just as salaries and home rent (Senbeto and Hon, 2020). There is a decrease in the
stability of finances in the euro .it is because the Russia was one of the biggest suppliers of the
energy. it leads to the increase in the risk of the growth of the euro. This has increased the prices
of commodities. Severe Impact on the lives of the people of the European union due to the war
in Ukraine. Already people were suffering from the COVID 19 impacts. The war has made their
life worst. There is continuos pressure on the people has increased the mental stress. As the
prices of the commodities especially fuel has increased drastically. Sudden increase in the prices
has halted the us citizen to spend on the commodities.
The spending of the US consumers hold for around 69% of the total consumers. As the
consumers think when the war would end next year . And they will purchase next year when the
prices of the goods will decrease. Bank should sponsor funds for the short term expenses.
Usually banks do not give financial help to the governments. As the circulation is suffering in the
market leads to the inflation. As UK is the one of the biggest contributor across the globe.
Inflation in the UK and European Union economy has leads to suffering across the globe. The
purchasing parity is decreasing, suicidal rate is increasing. Education level was already suffering
due to lockdowns and it is continuing due to the war. Government should initiate to boost the
morale of the people. It should try to amend the monetary policies . So that circulation should be
increased. Job opportunities should be increased. Global relations should be enhanced. Better

global relations can enhance the more options for the jobs, trade, education and foreign
exchange.
CONCLUSION
The following report provides various merits and demerits about the economy of United
Kingdom and how they proposed and applied various necessary rules and regulations to impact
the population favourably. Furthermore, the management of the funds at the time of war is also
important for mitigating the ill-effects of the lockdown along with the wartime conditions. The
report will positively benefit the users, as it summarized the merits and demerits of the methods
or acts which are drafted by the legislation and requires immediate actions to be taken. The
impact of the war of Ukraine is also discussed in context to the Central Bank of United
Kingdom, for which relevant suggestions are also provide, to help understand how the
government can tackle the unfavourable conditions arising in the country. Moreover, the
influence which the lockdown has made in the country has also been discussed thoroughly, as the
population needs to be positively influenced by the various methods which are being proposed
by the legislation.
Recommendations
Governments additionally need to awareness on medium to lengthy-term movements to
reinforce innovation. A vast variety of policy reforms may be needed in OECD nations and non-
OECD economies to reply to the dynamic nature of the invention procedure and beef up
innovation performance to foster sustainable boom and cope with key worldwide demanding
situations. It includes, amongst others, fostering innovation in all its paperwork and broadening
the local point of innovation rules past aid for R&D. In changing their processes to innovation,
authorities additionally want to recall the way to best assist risk-taking, which includes
investments in innovative begin-up corporations. Regulative reform of monetary markets to
address the monetary crisis need to bear in mind the financing of progressive start-ups and the
provision of suitable incentives for danger-taking. Assignment capital markets and the
securitisation of innovation-associated property (e.G. Intellectual property) have confirmed to be
specifically essential for plenty innovative start- U.S.And ought to no longer be harmed by way
of new monetary regulation. Present help measures for brand spanking new, progressive firms

which restrict the danger taken via marketers and capital companies can be up to date to enhance
their effectiveness.

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