UK sets out plan to boost economy amid coronavirus hit

  • UK sets out plan to boost economy amid coronavirus hit
    British finance minister Rishi Sunak UK sets out plan to boost economy amid coronavirus hit
By BBC, Reuters
Publication date:
Print article

The chancellor says people are anxious about losing their job and unemployment rising. “We’re not just going to accept this,” he adds.
Sunak says he is announcing a “plan for jobs” to protect, create and support employment.
He says at the start of the crisis the government provided £160bn to cushion the economic fallout from the Covid-19 crisis and lockdown.
Britain is entering the second phase of the government’s economic response, he says. The job responding to the crisis has “only just begun”, he adds.
The chancellor says the government will put the public finances back on a “sustainable footing”, but he suggests this should be in future as Britain rebuilds.

British finance minister Rishi Sunak warned of hardship ahead on Wednesday as he set out plans to protect jobs and limit the economic impact of the coronavirus

“We’re introducing a new policy to reward and incentivise employers who successfully bring furloughed staff back – a new Jobs Retention Bonus.”

“If you’re an employer and you bring back someone who was furloughed - and continuously employ them through to January - we’ll pay you a 1,000 pound bonus per employee.”

“For businesses to get the bonus, the employee must be paid at least 520 pounds on average, in each month from November to the end of January.”

“If employers bring back all nine million people who have been on furlough, this would be a 9 billion pound policy to retain people in work. Our message to business is clear: if you stand by your workers, we will stand by you

“The Kickstart Scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.”

“I’m making available an initial 2 billion pounds; enough to fund hundreds of thousands of jobs.

“And I commit today: there will be no cap on the number of places available.”

“For the month of August, we will give everyone in the country an Eat Out to Help Out discount. Meals eaten at any participating business, Monday to Wednesday, will be 50% off, up to a maximum discount of £10 per head for everyone, including children.”

“Each week in August, businesses can then claim the money back, with the funds in their bank account within 5 working days.”

“I have decided today to cut stamp duty.

Right now, there is no stamp duty on transactions below £125,000. Today, I am increasing the threshold to half a million pounds.”

“This will be a temporary cut running until 31st March 2021. And, as is always the case, these changes to stamp duty will take effect immediately.”

“At the moment, VAT on hospitality and tourism is charged at 20%. So I’ve decided, for the next six months, to cut VAT on food, accommodation and attractions.”

“Eat-in or hot takeaway food from restaurants, cafes and pubs; Accommodation in hotels, B&Bs, campsites and caravan sites; Attractions like cinemas, theme parks and zoos; All these and more will see VAT reduced, from next Wednesday until January 12th, from 20% to 5%.”

“I’m announcing today a new, 2 billion pound Green Homes Grant. From September, homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs”

“Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before. And the longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities.

“It is in no-one’s long term interests for the scheme to continue forever.”

“I’m investing an extra 1.2 billion pounds in DWP, to support millions of people back to work”