Companies should pay 20 percent of wages for layoffs as of August, Rishi Sunak will say today as he begins phasing out a massive bailout, despite fears of a wave of layoffs
Businesses will have to pay 20 percent of pay for layoffs as of August, Rishi Sunak will say today as he begins to settle the government’s massive bailouts.
The Chancellor will declare that companies should bear some of the burden despite fears of a wave of layoffs.
He is also expected to provide details on the future of separate support for the self-employed – with signs that the grants may be extended until next month.
Environmental Secretary George Eustice warned this morning in a round of interviews that people cannot be gobbled ‘indefinitely’ should find a way to get back to work safely.
With the cost of the bailouts reaching £ 100 billion, Sunak is desperately trying to balance the need to distract companies from public money to keep the economy life-long during the shutdown.
UK plc is heading for the worst recession in 300 years, with millions of jobs expected to be lost and the prospects for a rapid bounceback are unclear.
The leave scheme currently covers 80 percent of employee wages, up to a maximum of £ 2500 per month.
Mr Sunak has already announced that workers will have the same safety net until October, but said companies will have to take over part of the bill.
Chancellor Rishi Sunak (pictured in Downing Street last night) will declare that businesses should bear some of the burden despite fears of a wave of layoffs
The 20 percent – 60 percent split between the employer and the state that the Treasury is believed to have liquidated is lower than the 50 percent share for companies previously mentioned.
Earlier this week, it was revealed that the government is now supporting a third of the workforce, with 8.4 million jobs on leave, to a total value of £ 15 billion to date.
Another 2.3 million self-employed receive grants equal to 80 percent of their usual monthly income, up to a maximum of £ 2500.
Bank of England Governor Andrew Bailey yesterday underlined the dangerous state of the economy by raising doubts about the speed of any recovery and needing a new wave of quantitative easing – in fact, printing money.
The intervention came when new economic indicators showed that only 14 percent of stalled companies expect to restart their operations in the next two weeks and are likely to take back only 31 percent of layoffs.
According to March, online job openings have halved between March and May.
Yesterday’s figures showed another 400,000 have been evacuated in the past week, with one million employers now filing a total of £ 15 billion
Since the crisis began in March, the Bank has lowered official interest rates to an all-time low of 0.1 percent, announced an increase in QE of £ 200 billion, took steps to ease financial pressure on large companies and made banks easier to provide loans.
When asked about Sky News whether there will continue to be support for the self-employed, Mr Eustice said: ‘It is clear that it has been almost a month since we said we wanted to reopen those parts of the economy that were unable to work from home, which is why we encouraged the construction industry to return to work.
“Many of those self-employed professions like plumbers, electricians, and so on, can get those people back to work now, albeit with social distance, but we should try to get bits of economy back to work.
“Now I don’t know what Rishi Sunak, the chancellor, will say later in terms of the self-employed and the schedule of leave for them, but I think here is a general overarching message that we’ve had a very generous schedule of leave around people through these extraordinary times to help and ensure that the overhead of companies can be covered. ‘