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Exclusive:

UK government warned 'little appetite' for ditching workers' rights as MPs vote

Experts said that a wave of potential reforms to UK employment law were more important than 'tinkering' with EU rules

Boris Johnson warns UK faces 'a real, real crisis' on economy

Oscar Williams-Grut
·Senior City Correspondent, Yahoo Finance UK
·4-min read
DUDLEY, ENGLAND - JUNE 30: Prime Minister Boris Johnson delivers a speech during his visit to Dudley College of Technology on June 30, 2020 in Dudley, England. Johnson said Britain needed the type of massive economic response that US president Franklin D. Roosevelt mobilised to deal with the Great Depression. He has earmarked £1 billion ($1.2 billion) for school repairs and a further £4 billion for "shovel-ready" projects that cover everything for road maintenance to public transport. (Photo by Paul Ellis - WPA Pool/Getty Images)
Boris Johnson: 'Of course we face a real, real crisis and we have to deal with it'. Photo: Paul Ellis/WPA Pool/Getty Images

UK prime minister Boris Johnson has admitted the UK faces a worse economic crash than the financial crisis of 2008 as a result of the COVID-19 pandemic and subsequent lockdown.

“We all knew, when we went into lockdown, that there would be huge economic cost,” Johnson said on Tuesday.

The prime minister said the 2008 crisis, which saw the economy shrink by 6%, “was actually not as bad” as the current situation.

“Of course we face a real, real crisis and we have to deal with it,” he said. “But we’re going to deal with it in the most energetic way possible.”

New figures from the Treasury show that 9.3 million people are now on furlough, almost a third of the UK’s total workforce. Fears are growing that many will lose their jobs when the scheme ends in October.

READ MORE: Furlough number hits 9.3 million days before cut off

Speaking on Tuesday, Johnson refused to say whether the government’s job retention scheme will be extended but hinted that chancellor Rishi Sunak would announce more measures on jobs next week.

The prime minister would not be drawn on the possibility of regional support for areas like Leicester, which has been forced to extend its lockdown in response to a local outbreak of COVID-19.

DUDLEY, ENGLAND - JUNE 30: Prime Minister Boris Johnson visits the Speller Metcalfe's construction site for the The Dudley Institute of Technology on June 30, 2020 in Dudley, England. (Photo by Jeremy Selwyn - WPA Pool/Getty Images)
Boris Johnson visits the Speller Metcalfe's construction site for the The Dudley Institute of Technology after warning the UK faces a worse economic crash than the financial crisis of 2008. Photo: Jeremy Selwyn/WPA Pool/Getty Images

It came as the prime minister delivered a speech in Dudley on Tuesday setting out plans to jump-start the UK’s ailing economy. Johnson pledged to “build, build, build” with £5bn ($6.1bn) of spending on infrastructure projects brought forward.

“We will not be responding to this crisis with what some people call austerity,” he said. “The world has moved on since 2008.”

Flagship measures include £1bn to build new schools and £1.5bn to repair hospitals. Johnson announced a new taskforce, dubbed “Project Speed”, that will “scythe through red tape and get things done”. He also promised the most “radical reforms of our planning system since the Second World War” to encourage housebuilding.

Other commitments include a new National Science Funding Agency that will back “high risk, high reward” projects.

READ MORE: UK government promises £5bn 'New Deal' to kickstart recovery

“I fully accept that there are going to be economic aftershocks but there are also big opportunities to take this country forward,” Johnson said.

“We need pace and this is the moment to inject that pace into the ambitions of the government.”

The spending pledges came hours after official data showed the UK economy suffered its steepest decline in output in 40 years. GDP shrank by 2.2% in the first quarter of 2020, before the full effects of lockdown were even felt.

“We must work fast,” Johnson said. “We’ve already seen the vertiginous drop in GDP and we know that people are worried now, about their jobs and their businesses.

“We’re waiting, as if between the flash of lighting and the thunderclap, with our hearts in our mouths, for the full economic reverberations to appear. We must use this moment now, this interval, to plan our response.”

Pedestrians wearing PPE (personal protective equipment), of a face mask or covering as a precautionary measure against spreading COVID-19, walk past shuttered shops in the city centre of Leicester, central England, on June 30, 2020. - Britain on Monday reimposed lockdown measures on a city hit by an outbreak of coronavirus, in the first big test of Prime Minister Boris Johnson's "whack-a-mole" strategy to control the disease while getting the economy moving again. (Photo by JUSTIN TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)
Boris Johnson's spending pledges came hours after official data showed the UK economy suffered its steepest decline in output in 40 years. Photo: Justin Tallis/AFP via Getty Images

Business groups welcomed the government’s plans and urged it to act quickly.

“The key now is to ensure that these projects get off the ground as a matter of urgency so that the benefits flow down through supply chains, safeguarding and creating as many jobs as possible across all UK regions,” said Stephen Phipson, chief executive of manufacturers group Make UK.

READ MORE: UK economy suffered biggest fall since 1979 as pandemic struck

Adam Marshall, director general of the British Chamber of Commerce, said: “The infrastructure delivery plans announced by the prime minister are welcome, but they must take shape on the ground swiftly to give a real confidence boost to businesses and communities.

“The government must go even further over the coming days to rekindle business and consumer confidence, as part of a wider roadmap to economic recovery. This is a critical moment, and business communities need this government to be bolder than any previous government has ever been.”

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MARKET OVERVIEW Material Handling Equipment: An IntroductionPercentage Breakdown of Global Material Handling Equipment Market by Segment (2019E, 2021F and 2023F)Percentage Breakdown of Global Material Handling Equipment Market by Region (2019E, 2021F and 2023F)Conveying Equipment and Conveyor System: A PreludeTypes of ConveyorsOverhead ConveyorFloor ConveyorRoller ConveyorPallet ConveyorCrescent ConveyorBelt ConveyorOther Types of Conveyor SystemMajor Uses and ApplicationsEnergy Cost: Critical Component of a Conveyor EquipmentEnd-Use Industry OverviewGlobal Economic OutlookGlobal Economic Outlook: Real GDP Growth Rates in % by Country/Region for the Years 2017 through 2020Global Manufacturing Purchasing Managers' Index (PMI) for the Years 2012 through 2019Conveyor System: Market OverviewBelt Conveyors: The Most Dominant Segment TypeWarehouse & Distribution and Food & Beverage: Leading End MarketsEurope: The Largest Geographic RegionAsian Economies Led by China to Spearhead Future GrowthCompetitionGlobal Competitor Market SharesConveyor System Competitor Market Share Scenario Worldwide (in %): 2019Impact of Covid-19 and a Looming Global Recession 2. FOCUS ON SELECT PLAYERS3. MARKET TRENDS & DRIVERS Conveyor Systems Market Growing with Demand Emanating from Conventional and Niche Application MarketsManufacturing and PackagingTransportation and LogisticsMerchandisingFactors Influencing Demand for ConveyorsNeed for Secure Environment in Industries Drive Large Scale Installation of Conveyor SystemsIntegration of Warehouse Management Technologies with Material Handling Equipment Need of the HourDistribution Logistics Simplify Outbound Movement of ProductsOmnichannel Commerce Creates a Paradigm ShiftMotorized Roller Conveyor Technology Improves Supply Chain ExcellenceDemand for Automated MHE with Conveyor Systems on the RiseGrowing Importance of Automation & Technology Drive Conveyor System Usage in Food & Beverage IndustryGlobal Sales of Processed Foods in US$ Billion for Years 2014, 2016, 2018 and 2020Rising Demand for Processed Meat: Major Growth Driver for Conveyor SystemDairy Products: Churning Out New Opportunities for Conveyor SystemGlobal Production of Butter, Cheese, Skim Milk Powder, and Whole Milk Powder (in Kilo Tons) by Developed and Developing Countries for 2017 and 2026Strong Demand for Beverages Spurs GrowthGlobal Beverage Market (2019): Percentage Breakdown of Sales by Beverage Type - Beer, Carbonated Soft Drinks, Coffee, Fruit & Vegetable Juices, Milk, Packaged Water, Tea and OthersEnsuring Sanitation of Belt Conveyors Key to Long Term ReliabilityAutomotive Industry: Shifting Gears to Automated SystemsStrengthening Automobile Production Fuels Demand for Conveyor SystemsGlobal Passenger Cars Production (In Million Units) by Geographic Region/Country for the Years 2017, 2019, 2022Steady Production of Consumer Electronics Drives Demand for Automated ConveyorsGrowth in Conveyor Belt Market Driven by Metallurgy and Mining IndustryBelt Conveyors Score over Trucking in Long Distance ScenariosSurging Demand for Air Travel Drives Need for New Airports and Infrastructure ModernizationGlobal Air Traffic Demand: Number of Air Passengers in Billion for the Years 2011 to 2025FBaggage Conveyor Systems Critical for Operational Efficiencies at AirportsSmart Airports: Opportunity for GrowthGlobal Smart Airports Market: Annual Spending Figures in US$ Million by Geographic Region for the Years 2018 and 2024Industrial Equipment/Machinery Manufacturing Industry Promises Bright ProspectsGlobal Construction Equipment Market: Revenues in US$ Billion for the Years 2019, 2021, 2023 and 2025Global Mining Equipment Market: Revenues in US$ Billion for the Years 2019, 2021, 2023 and 2025Conveyor Belts and Industrial IoT ApplicationsGlobal Market for Factory Automation: Revenues in US$ Billion for the Years 2017, 2019E and 2023FSmart Monitoring through Intelligent Conveyor SystemsDemand Goes Strong for Smart Conveyor EquipmentModular Designed Conveyor Systems Add VersatilityPallet Conveyors Efficiently Transport Discreet ProductsAutomated Conveyor Systems: Indispensable for Quality ServicesGrowing e-Commerce Impacts Automated Conveyor SystemsPallet Conveyors Find Suitability in Automated ApplicationsLatest Design Trends in Conveyor SystemsSelect Conveyor Technologies: Delivering Improved Performance in Industrial SettingsDirect DriveSmart ConveyorActive Conveyor Belt TechnologyFlexible Purpose ConveyorsCompact Design ConveyorsUpgrading Gravity Roller Conveyor to Motorized Roller ConveyorAutomated Conveyors Preferred Over Chain Conveyors for Smooth and Quiet OperationChallenges in Maintenance of Conveyor BeltsMaterial Handling Industry: Common Conveyor Belt Problems and Solutions 4. GLOBAL MARKET PERSPECTIVEIII. MARKET ANALYSISIV. COMPETITION Total Companies Profiled: 81 For more information about this report visit https://www.researchandmarkets.com/r/ixdni CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900

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