Your commercial news round-up: covid-19 and Brexit, nightclubs, Peppa Pig, Bentley, Klarna
updated on 27 January 2022
Reading time: three minutes
With covid-19 restrictions lifted today, as aspiring lawyers you should consider the impact that this will have on businesses and the economy. Will the cost of Brexit outweigh that of covid-19? What does the future of retail, and the food and drink industry look like, following two years of restrictions? What issues might Brexit bring up for certain practice areas? That said, it’s also important to take a step away from the pandemic and Brexit and look at some other unrelated issues that might be a focal point for your shortlisted firms and their clients.
- British companies have lost more than £250 billion to the pandemic at the end of 2021, with a similar loss amounted as a result of Brexit. However, the cost of Brexit is still rising. Thomas Sampson, associate professor at the London School of Economics, said: “When measured in terms of their impact on the present value of UK GDP, the Brexit shock is forecast to be two to three times greater than the impact of covid-19.” With the government having lifted covid-19 restrictions as of Thursday 27 January 2022, the pandemic’s impact is due to withdraw as the impact of Brexit continues to rattle within the economy.
- In addition, the average nightclub has been hit by debts of more than £230,000 as a result of covid-19, with a full recovery from the pandemic still far in the distance. The government’s covid-19 restrictions pre-Christmas 2021 led to a 40% drop-off in business across the night-time economy, according to the Night Time Industries Association (NTIA). Industry bosses have requested support, urging ministers to consider long-term aid (eg, more grants). NTIA CEO Michael Kill revealed that there are fears that many nightclub businesses will not survive beyond February. He said: “It is vitally important that the government allows the night-time economy to trade indefinitely, building momentum towards pre-covid trading levels, as well as building customer confidence.”
- Peppa Pig owners Entertainment One (eOne) is suing Vietnamese studio Sconnect for the creation of its popular YouTube series based on an animated family of wolves for alleged “passing off and copyright infringement.” The Wolfoo franchise has become a YouTube sensation, with nearly 30 million subscribers across three official channels. Sconnect is also allegedly in breach of six registered trademarks relating to the use of Peppa Pig’s name, images and references, which supposedly piggyback (pardon the pun) on its success.
- Luxury car manufacturer Bentley’s move towards exclusive electric vehicles by 2030 will see the company pump £2.5 billion into its efforts. The British manufacturer aims to create its first electric car within the next three years at its plant in Crewe, Cheshire – with plans for the plant to become carbon neutral as part of the investment. Adrian Hallmark, Bentley’s CEO said: “Our aim is to become the benchmark not just for luxury cars or sustainable credentials but the entire scope of our operations.” He described the plans as a “milestone moment” for Bentley.
- Swedish fintech company Klarna has revealed that it is launching a physical card in the UK via Visa, which will make use of the company’s buy now, payer later (BNPL) services for both in-store and online purchases. The physical card has more than 800,000 users in Germany and Sweden where it has already been rolled out. Users will be able to use the card’s “Pay in 30” option, which gives customers the chance to delay payment until the following month – this is currently the only payment optional available via the physical card, with plans to add additional options in future. Alex Marsh, head of Klarna UK said: “The launch of Klarna Card in the UK brings those benefits to the offline world, giving consumers the control and transparency of BNPL for all of their in-store purchases.”
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