Evaluating the Contemporary Business Environment

This report evaluates the impact of COVID-19 on the UK's economy and the economic responses by the UK government and Bank of England. It covers the major economic impacts, economic responses, and implications of COVID-19, Brexit, and Bank of England's measures. The report discusses the major economic impacts of COVID-19 on the UK's economy, the various economic responses by the UK government, and the implications of these responses. It also covers the main responses by the Bank of England and their implications for the UK's economy. The report concludes with recommendations for the UK government and Bank of England to manage the economic impacts of COVID-19 and Brexit.

Evaluating the
contemporary
business environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
The major economic impact on COVID-19 in the UK’s economy............................................3
The various economic response by UK’s government and all economic implications given.....4
The main responses in Bank of England with their implications to the UK’s economy............7
The most seen impacts of Brexit on the UK’s economy.............................................................8
TASK...............................................................................................................................................9
CONCLUSION ...............................................................................................................................9
RECOMMENDATIONS...............................................................................................................10
REFERENCES:.............................................................................................................................11
Books and Journals:..................................................................................................................11

INTRODUCTION
Business environment may be define as an environment which encompasses all those
factor which has a major impact on the different business operations. After the arisen of Covid
19, almost economic conditions of all the countries has been affected in a very negative manner.
In this pandemic persons may have to lose their jobs and works which directly impact on the
economics conditions of the country(Conradson, 2017). At the time of Covid 19, the social
disruption and the economic loss which has been done was very devastating. Most of the people
all over the globe came under the poverty line or depend on the government services because of
shutting down their business or losing their job. Along with this, lives of the individuals also
being affected after the arisen of Covid 19. This report is going to cover the impact of Covid 19
on the economy of the UK and along with this, the adequate measure which has been taken by
the nation government in order to maintain the business. Afterwords this report cover the
implications which have been made within the economy of UK and along with this, different
measures which have been taken by the Bank of England, with Brexit.
MAIN BODY
The major economic impact on COVID-19 in the UK’s economy
After the arisen of this pandemic, the economic condition of the country has been
affected in many ways like, lock down has been been seen in the various countries, shutting
down of different business practices along with this decrease in the import and export activities.
This not only result in declining the Gross Domestic Product of the country but also the lives of
the individual has also been affected in a very bad manner. The reason behind shutting down the
business are the lower demand of the goods and services in the market. It has been seen that
people of the society has become more about their health and hygiene and this result in deceasing
the sales of company (Javed and et .al., 2020). Due to the Covid 19 restrictions the industries
which affected the most are hospitality, tourism and travels.
Along with this it also been observed that the profits of different industries has become
decreases because of the demands of the products and services in market and more restrictions
on the exports and imports. The budget responsibility offices has estimated that the fall in the
GDP is about 35% but the national institute of the economy and social research has made their
observations that GDP of the country has decrease for about 15 % to 25%.

The employment rates of the companies as well as the country has also been decline
because of this pandemic. Along with this it also been seen that the number of employees in the
organisation has also being fall and most of the jobs were gone. The flow of trade and demand of
the different goods and services except the essential goods has also been seen decreased. Large
amount of money has been invested by the government in order to make separate Covid zones
and purchase of vaccines for the peoples(Farah, Ramadan and Harb, 2019) . This result in
decreasing the economy rates of the country. Around £299 billion of money has been borrowed
by the nation government in order to protect the individuals of the country in April 2020. This
amount has been considered as the highest debt which have been borrowed by the country.
According to the analysis of national statistics it has been seen that the debt on the country has
increase with a percentage of 100.5 which directly affect the cost and economic conditions of the
country.
In 2020 around 6,60,000 people were lost their jobs in the hospitality sectors because of
the lock down in country(Alqurashi, 2019). According to the surveys which have been made by
the of the experts around 22 % of the population of the country were being striking with the
pandemic and along with this around 73 % population who were engaged with construction and
food industry also been affected.
In addition to this education sector of the company is also been affected because of the
arisen of Covid 19. Temporarily shut down has been seen in this sector and along with this no
classes for the primary students. Transportation sector has also has been stopped because of this
pandemic due to which decline in the prices of oil has been seen. Around 0.5 % amount has
been estimated by the British petroleum in decrease in the prices of petroleum but around 17%
downfall in the prices has been measured. Almost all the industries like agricultural, hospitality,
education, transportation and many more has been affected after the came of pandemic.
The various economic response by UK’s government and all economic implications given.
In the life of an individual the Covid 19 made a huge impact. In the first wave of Covid
19 it has been that number of positive Covid cases has been increase in a very immense manner.
To stop these cases government of the country has imposed some restrictions on the social
gathering, entertainment industry, hospitality sector and tour and travelling sector. Due to this
around 9.8 % downfall has been seen in the economy of the country. Different types of measures
and policies has been made by the government in order to arrange the funds and food for the

people of society(Bag and et. al., 2020). Following ate the different measures which have been
taken by the government in order to support the families and economy ate the pandemic time:-
 Extra funds has been generated for the National Health Services in order to provide
different services to public.
 Supports has been provided to the small business and their employees like tax rebate,
sick leaves and many more.
 Government of the country also focus on the vulnerable people for managing their
payments.
Along with this 3 important loans schemes has been developed by the government of
nation like British Business Banks, Coronavirus business interruption loan and Coronavirus large
Business Interruption schemes. In addition to this they also paid more focus on the employment
of the peoples like around £1,000 has been provided to those employees who were on furlough.
Along with this, for the youth employees 25 hours per week work has been decided according to
their requirement (Garnett, 2021) . At the time of second lock down in 2021 new measure has
been imposed by the central government like Job retention scheme. Along with this government
also focus on providing the loans to the small business and new start ups in order to increase the
self employment rate. In relation to bank rates, the central bank of the country not only reduces
the bank loan rates by 0.1 % but also hold the major areas which comprises non financial bank
bond.
Different types of schemes has been developed by the government of nation like Bounce
Back loans, Increment of Universal credit, Kick start scheme, Mortgage holidays, self
employment scheme, Eat out Help out scheme, VAT payment Referrals, Job retention scheme
and many more. All these schemes has been developed in order to face all the problems which
came in this pandemic and to recover the declined economy. Following are the important
measure which have been discussed below:-
 Eat Out Help Out Scheme- this scheme has been developed for the hospitality sector in
order to generate some profit. After the arisen of lock down because of the Covid 19
government of the country has seen a major decline in the hospitality sector. To
overcome from this problem they develop this scheme in which 50% of the bill which
included the food and non- alcoholic drinks has been paid out by the government from
Monday to Wednesday. Along with this, amount £10 in the form of discount has been

give to single person. The main motive behind this scheme is not only to uplift the
economy of the nation but also to uplifts the motions of the restaurants once again.
According to the report it has been analysed that around £849 million has been claimed
by the 78,116 outlets.
 Bounce Bank Loan Scheme- This scheme has been launched by the Chancellor on 4 Th
of May 2020 in order to develop and encourage not only the medium business but also
for the small business (Telukdarie and et. al., 2018) . The Bounce Bank Loan scheme has
been developed in order to support and uplift theses business. This scheme also
comprises the Coronavirus Large Business Interruption loans. These schemes are
basically for the sole proprietorship business and Small and Medium scale
industries(SME's) as they many problem in order to run their business in a very effective
manner. It has been seen that challenges like declining in sales and less availability of
funds has been faced by these industries. Banking and the financial sector of the country
helped out the medium and small scale industries in order tom over come from these
uncertainties. Around £2000 to £50,000 has been provide by the banking sector to these
business in order to manage their annual profits and sales. 100 % guarantee has been
given by the government to the other financial institution in order to provide loans at a
rate of 2.5% per annum. The duration which have been decided for the repayments of the
loans are six months(Collings and Isichei, 2018).
 Self-employment Income Support Scheme- This scheme has been developed by the
government of the country on 26 March 2020. The main motive behind this scheme is to
support those person or individual who lost their business and have to shut down their
business because of the arisen of Covid 19. This scheme basically focus on those people
whose profit from the self employed business is less then £50,000. Her Majesty Revenue
and the customs (HMRC) has been responsible for managing and developing this
scheme. On 29 of May government of the country has announced second round in this
scheme which manage the different rounds in future.
 Job retention scheme- the job retention scheme has been developed by the government
of the country with a focus to uplifts all the types of business. With the help of this
scheme the management of the all enterprises is able to manage their different business
operations in a very effective manner. As the Covid 19 has affected all these business in

bad manner along with this they are not able to pay salaries to their workers. This scheme
was launched by the government on 20 March which comprises that around 80 % of their
monthly salaries has been provided by the company in order to increase the retention rate
of the employees(Kot, 2018). This scheme has been extended by the government till
September and along with this it is compulsory for all the companies to paid salaries to
all the staff members and employees who were on furlough. Around 17.5 billion
individuals has enjoy this scheme in which 8.7 people were furlough.
The main responses in Bank of England with their implications to the UK’s economy.
The Bank of England played a very important role at the time of pandemic. This British
bank not only help the business or population of the country in order to uplift them but also help
the employees of the country in order to face all the problem and damages at the crucial time of
Covid 19. With the help of these bank the economic conditions of the country has also been
improved and enhanced. Following are the crucial decision and measures which have been taken
by the Bank of England has been mentioned below:-
 Government bond Sustenance- In this measure the the Bank of England not only tries
to manage the different business practices of the small business enterprises but also
support the larger organisation. These banks arrange funds for the all these business so
that they can paid the salaries to their to workers and smoothly perform all the different
activities (González-Ruibal, 2018). The Coronavirus Business Interruption Loan has
been developed by the government of the country for small , medium and large
companies. Theses business majorly focus on around £45 million turnover through
which £5 million has been managed by them. Along with this 80 % repayment
guarantee has been given by the government of the country to all the lenders and along
with this they also hold all the financial sector. Short term loans has also been giving by
the commercial banks on commercial paper in order to support and manage all types of
business. The Term Funding Schemes and the Medium Size Enterprise has also been
launched by the government (TFSME) to support them.
 Reduction of interest rate- The interest rate has also been revised by the Bank of
England. They are responsible for managing and cutting down the bank interest rates of
the Loans. Around 0.1% interest rate has been declined by the British bank not only for
the business enterprise of United Kingdom but also for the households of the nations.

Monetary Policy Committee has increased the holdings for the government of the nation
by £200 billion on 19 March so they have to manage both incorporate and corporate
bonds. On 17 March HM also help them in managing all the Covid 19 corporate
financing facility. Their has been seen that the chancellor of the exchequer has cut down
the cost at 0.1% and along with this, the Monetary Policy Committee start managing the
meeting which result in reducing the bank interest rate by 0.1%. The main objective of
the government behind all these working is that they try to manage all the situations, so
that business man can start their different business practices on a new note and within the
set time period(Carayannis and et .al., 2017) . It also being seen that the chancellor
focus on evaluating the interest rates and financial costing, which result in improving the
economic conditions of the country. In regarding to the Covid 19 measures the HM
treasury of the country has announced that more focus has been paid by the government
on the implementation of funds and financial areas. With the help of these areas the
company can easily manage and operate their different business functions in a very
effective manner.
The most seen impacts of Brexit on the UK’s economy
 Future Impact- according to the surveys of 2016 the per capital income of the UK has
been reduced. It has been estimated that around 2-8% has been declined in the economy.
At the time of Brexit in order to imposed any rule with in the economy of the UK, the
government of the country have to manage the budget. It has been examine that the
economy of the UK has generate a loss of 0.5% at the end of 2022. Any business who
operate in the European Union has been controlled and maintained in a very effective
manner(Kortelainen, Happonen and Hanski, 2019) . Basically these are those long areas
and process which help in managing the losses because of the Brexit. Along with this,
these process also help in analysing those problems and frames which came in the way of
different economic output situations.
 Immediate issue by Brexit- after the Brexit the most important impact which have been
seen in the country of UK are the general uncertainties due to which downfall have been
seen among the economic condition of the country(Aldawood and Skinner, 2019). It has
been seen that the growth of the county has been sloe down from 2.4% in 2015 to 1.0 %
in 2019. the major impact of the Brexit has been seen not only on the tourism sector but

also on the trade relation and foreign investment. Along with this changes have been
made in the travelling sector and VISA. The economy of the UK has also been affected
by the changes in rules because of the and along with this the trade relation of the country
has came in major threat. The immigration, issues related to passport and trade relations
are came under danger because of the Brexit(Wagner, Schramm-Klein and Steinmann,
2020) .
TASK
CONCLUSION
From the above report it has been concluded that, Covid 19 has made a huge impact not
only on the economic conditions of the whole countries but also affect the individual life in a
very in bad manner. Due to this pandemic different business have been shut down and most of
the people have to lose their job. It has been concluded that most affected sectors because of the
arisen of the Covid 19 is hospitality, transportation industry, food industry, clothing industry,
education sector and many more. Along with this due to this pandemic Gross Domestic product
of the country has also being declined. This report also concluded the different schemes which
have been developed by the government to improve the economic conditions of the country.
Afterwords this report concluded the different measures which have been taken by the Bank of
England in order to stable to the economic condition of the country. In the end this report
concluded impact of Brexit on the economy of the UK.

RECOMMENDATIONS
In order to remove the and overcome from the different situation at the time of Covid 19,
the government imposed various methods and restrictions in relations to the safety of the
individual and business practices so that they can effectively manage their work. Along with this
government should also try to develop some rules and regulation in order to support the families
and unemployed people of the country. In addition to this government have to introduce some
schemes so that different types businesses can operate their different business functions in a very
effective manner and along with this, government have to introduced some loans scheme so they
they can get the funds in a very easy manner.

REFERENCES:
Books and Journals:
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Social Responsibility and Environmental Management. 27(3). pp.1395-1409.
Farah, M.F., Ramadan, Z.B. and Harb, D.H., 2019. The examination of virtual reality at the
intersection of consumer experience, shopping journey and physical retailing. Journal of
Retailing and Consumer Services, 48, pp.136-143.
Bag, S and et. al., 2020. Big data analytics as an operational excellence approach to enhance
sustainable supply chain performance. Resources, Conservation and Recycling, 153,
p.104559.
Telukdarie, A and et. al., 2018. Industry 4.0 implementation for multinationals. Process Safety
and Environmental Protection, 118, pp.316-329.
Kot, S., 2018. Sustainable supply chain management in small and medium
enterprises. Sustainability, 10(4), p.1143.
González-Ruibal, A., 2018. An archaeology of the contemporary era. Routledge.
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routines in a sustainable excellence context. Journal of Knowledge Management.
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—Transformation in the digital era. In Asset intelligence through integration and
interoperability and contemporary vibration engineering technologies (pp. 333-341).
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Wagner, G., Schramm-Klein, H. and Steinmann, S., 2020. Online retailing across e-channels and
e-channel touchpoints: Empirical studies of consumer behavior in the multichannel e-
commerce environment. Journal of Business Research, 107, pp.256-270.
Alqurashi, E., 2019. Predicting student satisfaction and perceived learning within online learning
environments. Distance Education, 40(1), pp.133-148.
Garnett, J., 2021. Strategic studies and its assumptions. In Contemporary Strategy (pp. 3-21).
Routledge.
Collings, D.G. and Isichei, M., 2018. The shifting boundaries of global staffing: Integrating
global talent management, alternative forms of international assignments and non-
employees into the discussion. The International Journal of Human Resource
Management. 29(1). pp.165-187.
Aldawood, H. and Skinner, G., 2019. Reviewing cyber security social engineering training and
awareness programs—Pitfalls and ongoing issues. Future Internet. 11(3). p.73.