Rishi sunak

One of the most generous Covid-19 emergency measures in Europe has been extended until the end of October – with some caveats. Chancellor Rishi Sunak has just told the House of Commons that the furlough scheme – which covers up to 80 per cent of an employees’ wages, with a cap of £2,500 per month – will continue to operate unchanged between now and the end of July. From August, furloughing will become more flexible, allowing for part-time work. The scheme remains extended to all sectors, avoiding the optics of industry favouritism, which could easily extend to regional favouritism, given the dependence on certain sectors in different parts of the

Just weeks ago, Chancellor Rishi Sunak claimed that widespread use of the furloughing scheme was proof of its success. But it appears the government has over-achieved. The Treasury’s original prediction was that 10 per cent of businesses would use the salary safety net; the figure has turned out to be closer to 70 per cent. The cost for just one month of the scheme is estimated to be £8 billion, only £3 billion less than the NHS’s monthly budget. ‘We’re not talking about a cliff-edge but we have to get people back to work.’ says Matt Hancock, the health secretary. ‘We’ve got to wean off it.’ After telling ITV early

How will the UK recover after lockdown? Although social distancing is expected to continue for months, talk has turned to how the government will deal with its coronavirus debts. The Treasury is seeking to raise £180 billion over the next three months to meet its pledges – putting the UK on course to see its budget deficit rise to a level never seen before in peacetime. Some estimates put borrowing this financial year at over £300 billion, far outpacing the years following the financial crash. This has led a number of public figures to predict a return to the Cameron and Osborne era with mass cuts in the years ahead. However, when Boris Johnson was

Was the Chancellor wrong to guarantee only 80 per cent, rather than 100, of ‘coronavirus business interruption loans’ to keep small- to medium-sized companies afloat? Rishi Sunak’s announcement this week of fully guaranteed micro-loans for the smallest companies seeking to borrow up to £50,000 was reported as a partial climbdown in the face of pressure from the CBI and many of his own MPs to do away with the on-risk slice of the larger scheme, which provides loans of up to £5 million through 40 accredited banks — but which many would-be borrowers have claimed is a bureaucratic nightmare. Readers certainly confirm that picture. One in the motor trade tells

At Wednesday’s coronavirus briefing, Chancellor Rishi Sunak turned his attention (and the Treasury’s coffers) to the charity sector, which will receive £750 million to support vital services for the community. The money will be divided between small, local charities working with vulnerable people and charities that provide ‘essential services,’ with Sunak citing St John Ambulance and the Citizens Advice bureau as two examples of potential beneficiaries. The support comes as organisations like Cancer Research announced in recent days that they would have to scale back their medical research due to a projected drop in donations on which they rely to keep their services going. This pot will be intended to plug such funding

The Chancellor’s emergency package for the self-employed is one of the most generous schemes to be offered worldwide so far, covering up to 95 per cent of the UK’s self-employed workforce. The details of the scheme, explained here, include a taxable grant worth up to 80 per cent of one’s profits over the past three years, capped at £2,500pm – notably on par with salaried workers who earn, on average, £340 more each month than self-employed workers. There were plenty of potential pitfalls and unnecessary giveaways the Treasury managed to dodge: wary of dishing out cash to super-wealthy contractors and consultants, the Chancellor has only opened the scheme to workers trading with profits up to

The government has taken steps to shore up most businesses. But it is becoming clear that the current plans may not be ambitious enough. Governments across the globe may need to be more radical if the commercial world is going to be able to handle the coronavirus crisis, while also ensuring tolerable income conditions for all workers, employees and the self-employed. If things get much worse, they may have to break out of their orthodoxies and start engaging with new, contrarian possibilities, such as more extensive public ownership and considerably higher taxes. These ideas will not, at first sight, be popular but maybe now is the time to debate and discuss these

In some ways, it’s easy and even important to keep Rishi Sunak’s performance in announcing his coronavirus job retention scheme in perspective. It should, after all, be pretty easy to be popular in politics when you are offering to spend literally limitless amounts of money protecting people from economic hardship. A cynic would also say that it’s relatively easy to look grave and statesmanlike when you’re standing next to a prime minister who can still look more inclined to play Prince Hal than Henry V. But even taking those things into account, I still consider Sunak’s performance one of the most impressive I’ve seen from a British politician in more