Spending review, Brexit, Goldman Sachs, Franco Manca: your commercial news round-up

With 31 December looming, Brexit negotiations ongoing and Chancellor Rishi Sunak’s spending review, there’s lots of important news to take in this week. Catch-up below with LCN’s round-up.

• A public sector pay freeze (excluding NHS workers) and a cut to foreign aid spending were among Rishi Sunak’s announcements in the government’s spending review on 25 November. As the UK continues to grapple with debt, unemployment and a shrinking economy due to the pandemic, Sunak told the House of Commons that the economic emergency “has only just begun”. UK borrowing is predicted to reach £394 billion this year and the Office for Budget Responsibility (OBR) revealed that unemployment is expected to rise to 2.6 million people by summer 2021.   
   
• As trade negotiations resume over Zoom this week, the European Commission is unable to confirm whether a trade agreement with Britain will be reached, making the next few days of negotiations crucial. EU Commission President Ursula von Der Leyen revealed to the European Parliament that the bloc is prepared for a no-deal Brexit: “The next days are going to be decisive. The European Union is well prepared for a no-deal scenario.” A no-deal Brexit would be worse for the UK economy long-term than the pandemic, according to Bank of England governor Andrew Bailey.

• A number of companies are preparing for changes to trading following Brexit, including banking giant Goldman Sachs. In a bid to ensure EU equity transactions can continue smoothly even with a no-deal Brexit, the firm plans to launch a European stock-trading destination in Paris before 4 January 2021.
   
• Restaurant owner The Fulham Shore has revealed plans to open new Franco Manca restaurants in London, despite the pandemic’s ongoing disruption to the capital’s hospitality sector. In September the firm opened a new Franco Manca restaurant in Waterloo which, despite a reduced footfall due to the pandemic, still traded well before the country’s second lockdown in November. Borough Market will host the company’s 53rd Franco Manca restaurant, which will be launched once current lockdown restrictions have been lifted. In a statement, Fulham Shore indicated that it plans to take advantage of lower rents during this period: “We see more properties coming to the market at ever lower rents as a result of the current conditions in the property, retail and dining out sectors.

“We expect this trend to continue and will continue to take advantage of this as and when appropriate.”

• Although Franco Manca’s revenue has mostly been behind its 2019 levels as a result of the pandemic, the government’s Eat Out to Help Out Scheme did see August sales rise ahead of the restaurant’s August revenue last year. Meanwhile, recent figures highlight that UK businesses have claimed £849 million through the initiative, with almost 50,000 restaurants, pubs and cafes having taken part in the scheme by 30 September.

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