An Interest rate rise of 0.15% to 0.25% by Bank of England is a brave and surprising move given the current economic uncertainty because of the resurgence of Coronavirus, say leading tax and advisory firm Blick Rothenberg.
R
ichard Churchill a partner at the firm said: “The
He added: “Whilst the economic impact on UK business
main drivers of the current surge in inflation
of the increase is likely to be minimal with interest rates
are the worldwide shortage of goods, increased
still exceptionally low at 0.25% the message it sends to
transport costs due of Brexit and shortages in the labour
business owners is a stark one that further interest rate
market. These factors are having a much greater impact
rises are likely, and debt will be more expensive.”
on inflation and the UK economy.”
MONEY MATTERS
Interest rate will have little impact on inflation and increased borrowing will seriously impact struggling businesses
He added: Many businesses have survived to this point
He added: “What is needed is clear direction and action
with the assistance of cheap borrowings, if the cost of
by UK Government to actively address these matters. If
borrowing increases for those businesses facing further
this is carried out UK businesses will feel they can absorb
economic uncertainty through Coronavirus particularly
the interest rate increase, inflation will start to fall, and
those in the Hospitality and Leisure sectors then escaping
future interest rate rises will become less likely.”
the current financial gloom may appear impossible.”
Richard said: “If there is no assistance or direction
Richard said: “The Bank of England obviously felt
provided by UK Government then business owners will
compelled to act with inflation now over 5% but many
be reluctant to take on further borrowings which are now
of the factors influencing inflation are macro-economic
more expensive to sustain their businesses through the
and it is unlikely that the interest rate rise in the UK will
current economic uncertainty, this will result in an increase
have any impact on inflation without further increases in
in business failures and a large cost to UK Government as
the future.”
the many previous support measures provided to these businesses will not be repaid.”
JJ Foodservice to Share 5% of all Profits with Employees JJ Foodservice is introducing a discretionary Profit-Sharing Scheme to give employees an amount equal to 5% of the net profit (before tax) of the company for the financial year.
T
“We want each and every member of the JJ family to share in the company’s success and see themselves as part of our future,” she added. Apply for a career at JJ Foodservice at https:// go.jjfoodservice.com/Career
he Profit-Sharing scheme will run in the next financial year starting from April 2022. “The contribution and dedication of our
employees, particularly during the COVID pandemic, has been incredible,” said Joanna Floczak, HR Manager at JJ Foodservice. 49
Fastfood Professional • February and March 2022
February and March 2022 • Fastfood Professional
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