Name: Coronavirus: what could the long-term economic impact be for you?
Uploaded: 2020-04-07T03:13:18.000Z
Duration: 7 min 34 s
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once one of the cornerstones of any U K High Street.

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After 200 years, though its place here is looking shaky.

To-infinitive

And in a bid to buy a bit of time, Debenhams is putting itself into administration.

Beleaguered bosses are in damage limitation mode, saying it's simply a move to avoid suppliers pushing them into insolvency while Corona virus closed its doors.

But this is the second time in 12 months administrators have been called in.

Of course, Debenhams has been struggling for some time, but its problems are now being repeated across the business world as companies are suddenly finding no cash coming in and that squeezes like to continue.

Just today, new data revealed that consumer confidence has been hit by the biggest fool since records began.

And that's just the latest evidence off dramatic collapse of economic activity not seen in almost a century.

One estimate today suggests a lock down has cut economic output by an extraordinary 31%.

That means it's costing us all to £310.4 billion a day.

Among the areas hardest hit hotels and restaurants, down 100 and £72 million manufacturing down by £500 million on non food shops, down by 156 million.

But earnings won't simply start whenever they shut down end, say analysts.

We certainly can't assume that on day one after the log down restrictions are these the things they're going to bounce right back up to the pre lock down level and that were immediately in a matter of months going to make up for all of this lost output?

Certainly, some businesses are going to see a pickup in activity as the restrictions are eased.

But for other ones this they are really losing out, which they will arguably, never, never get back.

The drip feed of bad news from industry after industry is speeding up marches, traditionally the best month of the year for car sales.

Last month, they were down 45% compared to last year.

Even before the door shut, many customers were staying at home, many more afraid of getting themselves into increased debt.

March sales fell to the lowest level in more than two decades on, with production forecast down 23%.

There's no bounce back in sight, the slowdown maybe almost universal, but the pain isn't shared out equally.

According to new research by the Institute for Fiscal Studies, women, younger workers and low earners are particularly vulnerable because they are more likely to work in areas like retail and leisure.

The I F s found that women are 1/3 more like its work in affected sector than men.

Workers under 25 2.5 times more likely to be hit than other employees and low earners seven times more likely than high earners toe work in a shuttle business.

The longer this drags on, they worn, the longer the recovery long run in packs can come because people lose their job now and it takes them a while to get back into work.

They may get back into work on the wages, and they otherwise would have would have had.

And they may already have bean on relatively low wages.

If you spend some time out of the labor market, particularly for young people, that may have quite a long term effect on their incomes.

If it's already those who are less well paid, who are effective, they may be less well paid for a longer period.

For some firms that were limping by before Corona virus has forced their hand.

Laura Ashley calling in the administrators last month.

But the question is which names will survive on which names will disappear completely.

Well, joining me now is the newly appointed Shadow chancellor Annalise Todd's Congratulations on the job and thanks for coming on the program.

You first of all, what you would have done differently.

Compared to the chancellor who has lavished billions of taxpayer's money on this crisis, what would you have done differently?

Well, obviously, this is an unprecedented crisis.

It was going to be challenging for any government to put the relevant provisions into place.

You know, I'm pleased in some areas that the government has acted.

It did take some time to put those measures into place, and I suppose that's the first place that I would start.

If we look at the furlough scheme, for example, that scheme, rich back feels people salaries up to 80% Thio Cap know that scheme is absolutely critical for keeping people in work because, as we've just heard from the moment that somebody leaves work and becomes unemployed.

That can be catastrophic for their income, but it's also very, very bad for the economy as well.

Now it took quite some time for that scheme to be pretend to place on for a government to actually talk to the trade unions under two businesses about that scheme.

But we really need to make sure that as many employers as possible participate in that scheme is absolutely critical that they retain that amount of employment if it'll possible.

No one is the things that may have put off some employees from using it, of course, is the fact that it doesn't cover all of the fixed costs, my cover salaries, but it doesn't necessarily cover, you know, the relativity bills, rent IC said.

To know that means that the loan scheme the government put in place is absolutely critical.

You know, initially there were problems without we pointed those out.

Some changes have been made, but we really need to ensure that the banks are actually getting that money out of the door because it is gonna be sorry Going, which is with the government itself has been saying.

But when it comes to some of the big ticket items virtually nationalizing the railways, guaranteeing 80% of salaries I mean, these are the kind of things that Jeremy Corbyn was dreaming of doing.

Now they're actually happening under a Tory govern.

Well, as I said with furlough scheme with the 80% wage guarantee, while I absolutely welcome it and it's necessary, you know, we were calling for that for quite some time before government began discussions with Paige.

Unions on with business is about putting in place.

No, I accept it was a challenge to get into place, but we can't have that kind of delay in the future.

You know, again it to acquaint sometime for the package for self employed people to be pretend to put into place, I accept That's difficult.

But actually, we've now got quite large numbers of people who for the first time are trying to access Social Security because none of these schemes cover them on when they try and do so.

As you know, They've got to wait for a very, very long time before they get anything on.

Okay, We would not be adopting that approach.

We think that loans got to be switched into a grand.

Otherwise, we're going to have even more extreme levels of January briefly.

And finally, who do you think should pay for the enormous amounts of money that had been borrowed here?

Well, you know, we're told that's currently so many people are sacrificing.

But us was just mentioned in your program.

Actually, the impact of all of this is falling very, very unequally.

We need to make sure in the future that it's those with the broader shoulders you're actually contributing toe our recovery.

But if they can, that's going to be re V critical as we go forward.

Particularly when so many people will have a little Lincoln.

And then he's not sorry to cut you short.

 Thank you very much for coming on the program. 

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Coronavirus: what could the long-term economic impact be for you?

absolutely

struggle

pretend

critical