17th March 2021
Fully subscribe to your £20,000 IFISA allowance before 6th April 2021 to make the most of the forecasted economic growth.
The plan for unlocking the UK economy is well defined and the first few milestones have been met.
This irreversible unlocking will open the door for pent-up consumer and business demand within the UK set to grow steadily and quickly over the next few months in particular. Now’s the time to seize this unique opportunity and get your finances primed and ready to ride an unprecedented wave of economic growth.
The timeline:
29th March 2021: Up to 6 people able to mix outside.
12th April 2021: Shops and pubs set to open for outdoor food & drinks. Plus, self-catered holidays within the UK to resume business.
17th May 2021: International travel opens up plus a relaxing of all outdoor restrictions & indoor mixing of 2 households permitted.
21st June 2021: All other restrictions to be lifted.
At Crowd2Fund (and across the general UK marketplace) we’ve already begun to see a steady increase in investor and business confidence. And, as the economy continues to open up, this confidence is forecasted to grow dramatically.
So, what next?
Now’s the time to act to ready your finances. Complete your full IFISA subscription before the 6th April and you’ll also be able to make the most of higher interest rates currently offered on our platform due to the revenue loans - preferable because of the less predictable trading patterns during COVID-19 which are soon to end. Our Exchange will also open before the end of this tax year allowing you to invest your capital quickly and in a diversified way.
What’s forecasted to happen as the economy unlocks?
We predict, alongside many economic authorities, that the UK will see significant economic growth over the summer of 2021. Smart investors will be preparing their finances to grow inline with what many are saying will be one of the largest expansions of the economy for decades. We believe the predicted growth will happen for a number of reasons as detailed below. This does of course assume that there will be a successful easing of the lockdown and a continued, successful rollout of the vaccine programme with no unforeseen issues.
- A pent-up demand in the market
Because the economy has been constrained, in some shape or form, for the past 12 months, there is now an increased demand in products and services that have been unavailable to consumers and businesses during this time. People want to taste normality again and are happy to spend their money to get it. Many investors will be backing the sectors that have been constrained most during lockdown (such as the holiday and entertainment markets) and therefore are expected to experience the largest growth.
- Significant capital injection
Over the past 12 months there have been economical winners and sadly, businesses that have been unable to weather the course. Overall however, there has been more capital injected into the economy and people’s pockets directly than ever before – and many have not had the opportunity and freedom to spend it. According to the Bank of England deposits held on account have increased by 200% since the pandemic. Many investors will be investing this additional capital back into the UK economy quickly, not only to avoid any possible increase in inflation but also take advantage of higher interest rates currently offered.
- The Brexit bonus
Britain finally leaving the E.U. means that the Brexit uncertainty within the economy has nearly all but dissipated - an unrest we’ve been living with since 2016. The successful trade deal has also given many a more optimistic outlook on the UK economy. This optimism will be reflected not only in people’s attitudes but also within the plans and strategies of many businesses that have held off on projects for the past five years due to Brexit unpredictability. Brexit limbo is finally over. Now is the time to back businesses that have a global outlook and are seizing the new, post-Brexit freedoms.
- New trade opportunities
Since Brexit there have been 93 trade deals signed worth £897bn. After the lockdown, the opportunities created because of these trade agreements can begin to be fully realised. Many investors will be quick to support businesses with growth potential within markets where trade deals have been signed.
- An optimistic post-war sentiment
As a natural reaction to the relief that the lockdown is mostly over, people will be jubilant, happier and generally more willing to spend money on themselves, friends and family in celebration of a brighter daily reality. In turn, we expect investor confidence to rise quickly, with many investors and businesses making up for time lost during the pandemic.
- International competitive advantage
Because of the huge success and speed of the UK’s vaccination programme, the UK economy is set to be unlocked for good. Like the freedoms New Zealand has now, we’ll have an entirely open economy which in-turn will give us an advantage over economies that do not have the same levels of immunity within their population. Activities that are not safely possible in a partially or non-vaccinated economy will be able to happen on British soil sooner. Investors can be confident that more extreme lockdown and social distancing measures are soon to be over, and with this more normal investing patterns can resume.
- Alternative revenue streams
Many of the businesses that have survived the pandemic will have had to adapt their products and services. Though this has certainly been a challenge for many, this imposed diversification could be something that can continue to work in their favour. Many businesses that have survived the pandemic should experience higher growth due to this additional resilience.
- Less saturated marketplaces
There has been an unfortunate loss of businesses during the pandemic. And though extremely sad, the reality is that this will create more space for new businesses that offer more innovative and competitive products and services. As ever, it’s wise for investors to support growth sectors with their funds, and they can do that easily through the Innovative Finance ISA.
- New product launches
Many businesses who have seen reduced trading will have spent their time developing new products and services that they’ve not yet had the opportunity to launch. We will see many of these on the market as the UK starts to open up. With Crowd2Fund you can also be part of the development of new products by backing UK businesses who are seeking capital for growth.
- Less international travel
As more people are likely to be staying local in 2021 due to travel restrictions and high rates of infection in other countries, it will mean they’ll be spending their money in the UK, providing the British economy with an additional boost.
Act fast.
It’s that simple. There are only a few weeks left to fully subscribe to your Crowd2Fund Innovative Finance ISA allowance. You don’t need to invest the funds right away and they can be held within your wallet and invested into businesses as the platform scales up and the Exchange reopens. Either way, it’s a smart move.
And there’s a lot more in store for you...
We’re seeing a very positive upwards trend in new businesses listing on the Crowd2Fund platform. Stay tuned and get ready to fund exciting UK businesses with attractive tax-free interest rates as part of your £20,000-per-year Innovative Finance ISA.
Subscribe to your IFISA allowance before the 6th April 2021.
Sources:
https://home.kpmg/uk/en/home/insights/2018/09/uk-economic-outlook.html
https://www.bankofengland.co.uk/statistics/money-and-credit/2020/november-2020
https://en.wikipedia.org/wiki/Trade_agreements_of_the_United_Kingdom
