The Chancellor has announced that the government will step in and help pay wages, for the first time in UK history under the coronavirus job retention scheme.
Boris Johnson has announced that all cafes, bars, pubs and restaurants must close tonight.
Night clubs, theatres, gyms, cinemas and leisure centres must also close on the same timescale.
The Prime Minister said that if it was necessary, then licensing laws could be used, but he believed that it was unlikely that the measure would be needed
The Chancellor has announced that the government will step in and help pay wages, for the first time in UK history under the coronavirus job retention scheme.
Companies and organisations will be able to apply for a grant from HMRC to cover the wages of people who are not working due to coronavirus shutdowns, but who haven’t been laid off.
It will cover 80% of the salaries of these retained workers, up to £2,500 per month.
No businesses will pay VAT until the end of June, this, he says, will inject £30bn into the economy.
The Government also announced that is also extending its coronavirus business interruption loan scheme, to be interest free for 12 months from the six months it initially announced.
There will be £6bn of extra support for the welfare system, to help families through the coronavirus crisis. The Universal Credit standard allowance will increase by £1,000, for the next 12 months, as will the Working Tax Credit basic element.
“When this is over, said the Chancellor,” and it will be over, we want to look back on this moment and remember the many small acts of kindness, done by us and to us”
John McDonnell MP, Labour’s Shadow Chancellor, responding to the Chancellor’s further economic announcements, said:
“The Chancellor has shifted direction but unfortunately not far enough or fast enough.
“The Government must give people the economic security to stay at home by lifting the level of Statutory Sick Pay, but it appears that the Government hasn’t done that today. Sick pay is being left at a level that the Health Secretary said he could not live on, yet this is what the self-employed are being asked to get by on.
“The Chancellor’s wage protection plan sets out no obligation for employers to keep staff on, and no commitment to full wages being paid, with the cap on incomes meaning that many people will take a significant pay cut.
“This will also take some weeks to roll out at a time when wages need to be guaranteed more urgently.
“Other benefits, including for carers, are not being lifted adequately.
“The Chancellor said he would do whatever it takes, but he can and should go further – and we will keep working constructively with Government to ensure the best possible response to the Coronavirus crisis.”
Dame Carolyn Fairbairn, CBI Director-General, said:
“This is a landmark package of measures for business, people and jobs. The Chancellor’s offer of substantial payroll support, fast access to cash and tax deferral will support the livelihoods of millions. Firms and employees will respond with relief and determination.
“It marks the start of the UK’s economic fightback – an unparalleled joint effort by enterprise and government to help our country emerge from this crisis with the minimum possible damage. An important day for our country.”
