Rishi ponders "Amazon tax"

Tax on online shops

Online retailers like Amazon could face a new tax levied by the government to help pay back its coronavirus debts. Amazon’s UK sales soared 51% to almost £20 billion last year thanks to a nationwide online shopping spree. Chancellor Rishi Sunak is considering targeting companies that have done well out of lockdown to help pay for the government support given to hard hit industries.

Borrowing for survival

British businesses are getting deeper into debt just to survive, according to accountancy firm EY. They’re worried it could hold back the UK’s economic recovery, if businesses are forced to focus on making repayments rather than investing in growth. The government has given companies more time to repay state-backed loans in a bid to try and boost those that are struggling.

Boohoo seals deal

Boohoo has agreed a deal to buy Dorothy Perkins, Wallis, and Burton - the final 3 brands from the collapsed Arcadia retail group. The deal includes the shops’ stock, brands and online business, but not the shops. The brands will disappear from the high street and most of the 2,450 staff will face redundancy.

Household “stimulus package”

UK savers have put away £170 billion* in extra cash since the start of the pandemic, according to HSBC economists. People who have kept their income but spent less in lockdown have been able to put a bit more aside. The extra cash is worth 8% of the UK’s pre-pandemic GDP. The big question: how much will we spend, when we can?