• Latest
  • Trending
Business borrowing soared but credit card usage plunged in 2020

Business borrowing soared but credit card usage plunged in 2020

Gates Cambridge Scholarship celebrates 20th anniversary

Gates Cambridge Scholarship celebrates 20th anniversary

Israel-Gaza conflict rages as US envoy visits

Israel-Gaza conflict rages as US envoy visits

Police and Crime Commissioner to end funding for heroin addiction treatment scheme

Police and Crime Commissioner to end funding for heroin addiction treatment scheme

News Press Live
  • Home
  • News
    • All
    • Crime
    • Economy
    • News of England
    • News of Northern Ireland
    • News of Scotland
    • News of Wales
    Gates Cambridge Scholarship celebrates 20th anniversary

    Gates Cambridge Scholarship celebrates 20th anniversary

    Israel-Gaza conflict rages as US envoy visits

    Israel-Gaza conflict rages as US envoy visits

    Police and Crime Commissioner to end funding for heroin addiction treatment scheme

    Police and Crime Commissioner to end funding for heroin addiction treatment scheme

    Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

    Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

    Horse Racing Getting back on track

    Rochdale hopes machine centre will manufacture revival in fortunes

    The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

    The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

    Convoy drives through London shouting  the Jews, rape their daughters’

    Convoy drives through London shouting the Jews, rape their daughters’

    Conflict intensifies in Gaza as Israeli strikes destroy Gaza tower housing

    Trending Tags

      • Crime
      • Economy
      • News of England
      • News of Northern Ireland
      • News of Scotland
    • Royal Family
    • Tv & Showbiz
    • World News
    • JOBS
    • Sport
      • Football
      • Watch Live Score Football (Soccer) Videos
    • Login
    • Register
    • Latest Headlines
    • Advertise With Us
    • Find A Job
    Monday, January 30, 2023
    Watch Live Sport
    • Home
    • News
      • All
      • Crime
      • Economy
      • News of England
      • News of Northern Ireland
      • News of Scotland
      • News of Wales
      Gates Cambridge Scholarship celebrates 20th anniversary

      Gates Cambridge Scholarship celebrates 20th anniversary

      Israel-Gaza conflict rages as US envoy visits

      Israel-Gaza conflict rages as US envoy visits

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

      Horse Racing Getting back on track

      Rochdale hopes machine centre will manufacture revival in fortunes

      The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

      The sad state of Cardiff city centre after a year of lockdown as shops lose fight to hold on

      Convoy drives through London shouting  the Jews, rape their daughters’

      Convoy drives through London shouting the Jews, rape their daughters’

      Conflict intensifies in Gaza as Israeli strikes destroy Gaza tower housing

      Trending Tags

        • Crime
        • Economy
        • News of England
        • News of Northern Ireland
        • News of Scotland
      • Royal Family
      • Tv & Showbiz
      • World News
      • JOBS
      • Sport
        • Football
        • Watch Live Score Football (Soccer) Videos
      No Result
      View All Result
      News Press Live
      No Result
      View All Result

      Business borrowing soared but credit card usage plunged in 2020

      Business borrowing soared but credit card usage plunged in 2020
      15.4k
      VIEWS
      Share on FacebookShare on Twitter

      UK businesses borrowed £35.5 billion in net terms last year, with a further £26 billion forecast by the end of 2021, according to new research.

      But consumers stuck in a cycle of lockdowns and pandemic restrictions cut back on spending, with the amount of credit card debt falling at the fastest levels in 26 years, according to the Financial Services forecast report by the EY ITEM Club.

      The scale of borrowing by UK firms soared compared with previous years, with 2020 levels £25 billion higher than average borrowing over the previous five years, the report added.

      Empty streets
      Lockdown has seen streets deserted and shoppers reducing credit card debts, according to EY (Ian West/PA)

      Researchers found that small and medium-sized enterprises (SMEs) needed the lending options more than larger rivals, as companies scrambled to survive during the pandemic.

      Since the latest national lockdowns in 2021, experts also predict many businesses are unlikely to start repaying their debts until 2024.

      By comparison, consumers reduced credit card debts, preferring to make repayments. Net lending via credit cards fell 9.9% in 2020 – the largest fall since records began in 1994.

      This is expected to return this year as hoped-for lockdown restrictions are eased, but is only predicted to rise by 2.1%.

      Mortgage lending remains subdued and is expected to grow 2.3% this year – below the 3% growth in 2020.

      The predictions are based on an assumption that the current lockdown lasts until the end of March and then restrictions are steadily relaxed as the vaccination programme is rolled out.

      Anna Anthony, UK financial services managing partner at EY, said: “Financial services firms entered the pandemic in a position of capital strength and have continued to support the economy and business through one of the most testing periods we have ever faced.

      “That being said, there are a significant number of current challenges, and more that lie ahead.

      “By the end of this year, businesses will have borrowed in the region of £60 billion net since the start of the pandemic, which is a colossal amount, especially as for many it is just about survival, not expansion or growth.

      “And the prospect of some, if not many firms, not being able make the required repayments is concerning for all involved.

      “As well as rising loan losses, banks are contending with another year of squeezed interest margins and subdued consumer lending.

      “Insurers too are facing a tricky year, with ongoing Covid-19 related pay-outs, persistent low interest rates and the impact of the FCA pricing review.

      “However, it’s not bleak across the entire sector, and the outlook is a little more positive for UK asset managers in 2021 and beyond, with assets under management (AUM) set to rise in 2021 and 2022 as global markets recover.”

      — to www.newsandstar.co.uk

      Share308Tweet193SendSendShare54Pin69

      RelatedPosts

      Gates Cambridge Scholarship celebrates 20th anniversary
      News

      Gates Cambridge Scholarship celebrates 20th anniversary

      Israel-Gaza conflict rages as US envoy visits
      News

      Israel-Gaza conflict rages as US envoy visits

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme
      Crime

      Police and Crime Commissioner to end funding for heroin addiction treatment scheme

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk
      Economy

      Nicola Sturgeon’s own economic adviser warns Indyref2 puts recovery at risk

      London

      Horse Racing Getting back on track

      News

      Rochdale hopes machine centre will manufacture revival in fortunes

      Recommended Stories

      Margaret Ferrier: Police launch investigation into Covid trip MP

      Margaret Ferrier: Police launch investigation into Covid trip MP

      Coronavirus: Simon Hart’s exercise claims ‘not correct,’ says chief constable

      Coronavirus: Simon Hart’s exercise claims ‘not correct,’ says chief constable

      Welsh farmers welcome net zero challenge but ask for more help

      Welsh farmers welcome net zero challenge but ask for more help

      Popular Stories

      • Joe Biden opposes guarded border between Ireland and Northern Ireland | US News

        President Biden Promises to Slash Greenhouse Gas Emissions by 50 Percent by 2030

        2636 shares
        Share 1054 Tweet 659
      • Prince Philip is dead

        2632 shares
        Share 1053 Tweet 658
      • Two US Capitol police officers injured after suspect rams car into barrier and stabbed. Suspect dead

        2372 shares
        Share 949 Tweet 593
      • Prince Harry ‘back in the UK’ ahead of Duke of Edinburgh’s funeral on Saturday

        2143 shares
        Share 857 Tweet 536
      • Juventus chairman Andrea Agnelli says European Super League can no longer go ahead

        2115 shares
        Share 846 Tweet 529
      News Press Live

      © 2021 Copyright - All rights reserved.

      Navigate Site

      • About Us
      • Terms & Conditions
      • Private Policy
      • Advertise With Us
      • Contact Us

      Follow Us

      No Result
      View All Result
      • Home
      • News
        • Crime
        • Economy
        • News of England
        • News of Northern Ireland
        • News of Scotland
      • Royal Family
      • Tv & Showbiz
      • World News
      • JOBS
      • Sport
        • Football
        • Watch Live Score Football (Soccer) Videos

      © 2021 Copyright - All rights reserved.

      Welcome Back!

      Login to your account below

      Forgotten Password? Sign Up

      Create New Account!

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?