Everything we heard from the Chancellor today suggests the Treasury is extremely worried about unemployment surging. The measures he’s brought in (detailed below) are designed to keep unemployment figures as low as possible. That’s why jobs were at the forefront of the Chancellor’s summer statement this afternoon: supporting them, creating them and protecting them. But can Rishi Sunak pull off an economic miracle and deliver on his vow to never ‘accept unemployment as an unavoidable outcome’?
Among the major announcements today was a Job Retention Bonus – a move along from the furlough scheme – which will grant every employer who brings back a furloughed employee (until January at least) £1,000 for doing so. Already briefed but properly announced was the Kickstart Scheme: £2 billion to help young people on universal credit get back to work. In a bid to get youngsters into longer-term employment, these employees will have up to 100 per cent of their salary covered for a six-month placement.
Then came the more industry specific policies, with most of his attention directed towards the hospitality industry: this includes a substantial six month VAT cut – down from 20 per cent to five per cent – for food, accommodation and attractions.
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