Coronavirus UK: Rishi Sunak announces bailout for Winter Economy Plan

Rishi Sunak's new help for companies and jobs at the highest level

  • The vacation program is being replaced with a Job Support Scheme (JSS) to directly support the wages of employees who work at least a third of their regular working hours.
  • Companies pay workers the hours they work. For regular hours that they cannot work, the employer and the Treasury Department both pay one third of their wages, so they receive two thirds of the wages for missed hours.
  • JSS open to companies that have not used vacation.
  • The Self Employment Income Support Grant (SEISS) is being extended, some of which will be covered from November to January next year
  • It will be worth 20 percent of the average monthly earnings capped at £ 1,875.
  • Second grant for February to April 2021
  • The term of the bounceback loan guarantee has been extended from the current six to 10 years.
  • Interest periods of six months and payment holidays are now also available.
  • The VAT reduction from 20 to 5 percent for companies in the hospitality and tourism sectors will be extended until March 2021.
  • Other companies that have deferred VAT invoices under the new payment system can repay them in 11 interest-free payments in the 2021/22 financial year instead of one full payment in March 2021.
  • The tax system for self-assessment "Time to Pay" was extended to January 2022.

Rishi Sunak today announced a wave of new measures to keep the UK economy alive through the winter months as the Chancellor set his hopes on avoiding massive job losses through a wage subsidy system that will replace holidays.

With Mr. Sunak's new employment promotion program, the government will increase the pay of those who can only work part-time in "viable jobs".

The multi-billion pound support package was also included Further VAT cuts for the hospitality and retail sectors, and the expansion of emergency loan programs for businesses in difficulty.

Mr Sunak said Britain must "endure the uncertainty of the moment and live with it," which means "getting to know our new frontiers," but he insisted, "oYour life can no longer be put on hold.

The closure of the government's vacation program in late October has sparked dire warnings of layoffs in the coming months, but the Treasury Department has now decided to focus its fiscal firepower on saving jobs that have a future rather than "zombies" which don't.

Mr Sunak said the UK must face "the compromises and tough choices that the coronavirus brings" and that "in reopening the economy it is fundamentally wrong to keep people in jobs that only exist while on vacation".

However, Paul Johnson of the Institute for Fiscal Studies' prestigious think tank said the new system was "significantly less generous" than vacation and "it is clear that many jobs will be lost in the months ahead".

The Chancellor said he could not save every job and every company as he set the terms of the wage subsidy system, according to which workers have at least a third of their normal working hours and have to be paid by their employer for this work as usual.

The government and the employer each pay one third of the remaining equivalent salary for the hours not worked.

For an employee who works one-third of his normal working hours, the employer pays 55 percent of normal wage costs, while the government charges the employee about 80 percent of his normal wage.

Mr. Sunak said the program will target the companies that "need it most", with all small and medium-sized enterprises eligible.

However, larger companies can only apply if they can prove that their sales have decreased due to the crisis.

The program will run from November for a total of six months and is expected to cost at least £ 300 million per month.

Mr. Sunak told the House of Commons, “Many companies operate safely and profitably, but face uncertainty and lower demand during the winter months.

“These companies need support to get people back to work and protect as many viable jobs as possible.

& # 39; Today I'm announcing the new Jobs Support Scheme. The government will provide direct support to workers' wages and allow companies under pressure to keep employees in shorter hours instead of laying them off. "

Chancellor Rishi Sunak today unveiled his new Winter Economy Plan to support UK plc in the coming winter months. The focus is on a new wage subsidy plan

The Bureau of National Statistics recently announced that public sector debt topped £ 2 trillion for the first time. Mr Sunak's proposals today are likely to worsen the picture

The Bureau of National Statistics recently announced that public sector debt topped £ 2 trillion for the first time. Mr Sunak's proposals today are likely to worsen the picture

England, Wales and Scotland recorded an additional 27 deaths from Covid-19 today, while Northern Ireland recorded no deaths in the preliminary number

How does Rishi Sunak's new Job Support Scheme work?

Corporations have to pick up the lion's share of staff wages even if they don't work according to plans Rishi Sunak outlined this afternoon.

The Chancellor presented the Job Support Scheme (JSS) to directly support employees' wages for the next six months.

It will replace the vacation or Job Retention Scheme (JRS) that is slated to end next month.

The replacement with new lockdown measures imposed this week was a matter of great concern to politicians and business leaders.

Under the plans, companies will continue to pay workers for their hours. However, the JSS will help support workers' wages for the hours they lose due to working time constraints or a lack of business due to economic decline.

Both the Treasury and the employer pay one third of their wages for regular working hours when they do not work.

This means that workers receive all of their wages for the hours they work and two thirds of their wages for the hours they have not worked.

To be eligible, employees must have worked at least a third (33 percent) of their regular working hours. In this scenario, an employee would receive 78 percent of their total wage, with the company receiving 56 percent and the Treasury receiving 22 percent.

However, the Treasury Department is hoping that companies can reduce working hours instead of simply laying them off because they cannot afford to pay them.

Corporations will not be able to issue layoff notices to employees while participating in the Jobs Support Scheme, and the return of capital to shareholders will be restricted.

The program is reminiscent of the German short-time working allowance, which was recently extended until the end of 2021.

It enables employers to shorten workers' hours while keeping them in one job. The government pays the workers a percentage of the money they would have received for working on those lost hours.

For example, for someone who normally works 37 hours a week but is only now able to work 17, a company might pay their full wages for the 17 hours, but the government might pay part of the remaining 20 hours.

According to the Munich Institute for Economic Research, at the height of the pandemic, half of all German companies had at least some of their employees in the program.

Influential British politicians, including former Prime Minister Gordon Brown, have called on the government to introduce such a system, or a similar system modeled on France, after the vacation program ends in October.

The unveiling of Mr. Sunak's new job support program after he decided yesterday to cancel plans for a major budget in November read as follows:

  • Mr Hancock said he was not ruling out the prospect of telling college students not to go home for Christmas, but "we haven't reached that point yet".
  • The health minister said nearly 10,000 people a day now get coronavirus, although still less than the "100,000 a day" estimated during the spring summit.
  • The government eventually launched their long-promised coronavirus app across England and Wales.
  • Nicola Sturgeon has written to Boris Johnson calling for urgent talks with four nations to tighten lockdown restrictions and combat the spread of the coronavirus.
  • A group of MPs called on the government to Take action to improve the health, wellbeing and employment regimes of people living under the effects of Long Covid.
  • The government is considering introducing a new traffic light system that will send automatic warnings to people's cell phones to trigger local lockdowns.

Mr. Sunak also announced a new "Pay As You Grow" program to increase cash flow and ease the burden of paying back coronavirus loans.

He said, “Right now, businesses need every extra pound to protect jobs instead of paying back loans and tax deferrals. So today I'm taking four more steps to make this happen.

First, bounce-back loans have given over a million small businesses a £ 38 billion boost to survive this pandemic. To give these companies more time and flexibility to repay their loans, we're introducing Pay aa You're Growing.

"This means that loans can now be extended from six to ten years, which almost halves the average monthly repayment."

The Chancellor said that troubled companies can only make interest payments, while those in "real trouble" can suspend all repayments for six months.

He also extended a VAT cut for the hotel and tourism industries, telling MPs: “Under current plans, your VAT rates will increase from five percent back to the standard rate of 20 percent on January 13th.

"To support more than 150,000 businesses and protect 2.4 million jobs over the winter, I announce today that we will lift the planned increase and maintain the lower VAT rate of 5 percent through March 31 of next year."

The Chancellor said that despite the resurgence of the coronavirus, there were "reasons to be cautiously optimistic".

He said: “Today's actions mark an important development in our approach. Our lives can no longer be put on hold.

“Since May we have taken steps to liberate our economy and society. We did these things because there is more to life than just existing.

“We find meaning and hope through our friends and family, through our work, through our community.

“People were not wrong to want this meaning, to strive for normalcy, and the government was not wrong to want this for them either.

I said in the summer that we have to endure the uncertainty of the moment and live with it. This means that we need to get to know our new borders, as the real responsibility for fighting the coronavirus cannot be borne by the government alone.

Rishi's "Pay as you grow" plan aims to improve business survival by making loan and tax payments easier

Companies are given more time to repay emergency loans and tax burdens according to the plans presented by the Chancellor today.

More than a million companies that have taken out bounce-back loans can repay them over a period of 10 instead of six years under a “Pay as you grow” plan set out by Rishi Sunak in the House of Commons.

He told MPs that this would cut monthly repayments for businesses almost in half amid fears that the economic damage could last longer than initially thought.

This brings the bounce-back loan system into line with the German Schnellkredit, which allows repayments over a decade, but charges higher interest rates.

Companies can also take interest repayments for up to six months, and after six repayments they can take a payment vacation for the same period.

In addition, the Chancellor has extended the availability of bounce-back loans, coronavirus business interruption loans, coronavirus large corporate interruption loans and the Future Fund until November 30th.

So far, they have disbursed more than a million loans totaling around £ 58 billion.

In addition, a new payment system gives more headroom for deferred VAT payments of over £ 30 billion, allowing businesses and VAT registered sole proprietorships to make 11 interest-free payments between 2021 and 2022 instead of a flat rate at the end of March.

The temporary 15 percent reduction in VAT for tourism and hospitality, which has been increased from 20 to 5 percent, will be extended to the end of March.

But not all companies believe it will work.

Jon Kay, director of Bury St. Edmunds-based Camp Tails Doggy Daycare, said, “Pay-as-you-grow, interest rates, extra pay vacation, it ends up getting lipstick on a pig. Debt is debt and for many small businesses struggling to recover in a brutal environment this will be the final nail in the coffin. The Chancellor must announce the protection of employers as well as employees. After all, the latter does not exist without the former. & # 39;

"It is a collective responsibility that is shared by everyone because the cost is shared by everyone."

Mr. Sunak also announced that he will give companies more time and flexibility to pay deferred tax bills.

He said: “Almost half a million companies deferred over £ 30 billion in VAT this year. Under current plans, these payments are due in March.

Instead, I'm going to allow businesses to split that VAT invoice into 11 smaller repayments with no interest payable.

"And any of the millions of self-assessed income taxpayers who need extra help can now also extend their outstanding tax bill for 12 months from next January."

Business leaders welcomed the measures presented by Mr. Sunak, but said they had not gone far enough when they asked if the employment promotion program would actually keep workers in their roles.

Jonathan Geldart, director general of the Institute of Directors, said, “These new measures should bring relief to many directors who fear a harsh winter for their companies and employees.

“As the virus continues to spread, the Treasury Department is right to strike a balance between protection and adaptation.

“At first glance, however, it is not yet clear to what extent the job support program will help persistent companies retain their employees.

"The Chancellor may also have missed a ploy by not combining the program with measures to encourage wider job creation, such as lowering employment costs through lower employer NICs."

Dame Carolyn Fairbairn, Director General of the CBI said: “These brave moves by the Treasury Department will save hundreds of thousands of viable jobs this winter.

“Wage support, tax deferral and help for the self-employed will reduce the scarring effect of unnecessary job losses as the UK fights the virus. Further relief for business rates should remain on the table.

“The Chancellor listened to evidence from companies and trade unions and took decisive action. It is this spirit of agility and collaboration that will help make 2021 a year of growth and renewal. & # 39;

UK Chambers of Commerce Director General Adam Marshall said: “The measures will give businesses and the economy an important shot in the arm.

& # 39; Chambers of Commerce have consistently called for a new generation of support to help secure livelihoods and ease the money pressures businesses face during a challenging and uncertain winter.

& # 39; The Chancellor has responded to our concerns with essential steps that will help companies retain jobs and navigate through the months ahead. The new job support program will help many companies retain their valued, skilled employees. & # 39;

But Mr. Sunak's "Pay As You Grow" announcement sparked anger among small business owners when they said it was "putting lipstick on a pig".

Jon Kay, director of Bury St. Edmunds-based Camp Tails Doggy Daycare, said, “Pay-as-you-grow, interest rates, extra pay vacation, it ends up getting lipstick on a pig.

“Debt is debt and for many small businesses struggling to recover in a brutal environment this will be the final nail in the coffin.

“The Chancellor must announce the protection of employers as well as employees. After all, the latter does not exist without the former. & # 39;

Eddie Young, a wizard at Misterey Entertainment in Burton-upon-Trent, echoed a sentiment similar to saying: “Rishi Sunak strives to protect employees in many ways while millions of small business owners always have the people who pay them still little or no income and in many cases cannot claim any support other than the universal loan.

Questions had already been raised as to whether the Chancellor's autumn announcement, largely drafted in November, would continue

Questions had already been raised as to whether the Chancellor's autumn announcement, largely drafted in November, would continue

How much has the government spent so far to deal with the coronavirus crisis?

In July, the total cost of the government's coronavirus response was estimated at £ 190 billion.

Here's a breakdown of some of the things the ministers spent the money on:

Vacation: As one of the big ticket elements, the vacation program has already created a £ 39 billion bill that is expected to increase further through February.

Eat out to help: The urge to encourage people to eat out at restaurants in August had greater acceptance than the Treasury Department expected, as the bill was already £ 522 million. Companies have until the end of September to request reimbursements for discounted meals, which means they will increase.

Support program for self-employed: More than 2.7 million self-employed benefited from the first phase of the SEISS program, with the government handing out grants worth nearly £ 8 billion.

Coronavirus Business Interruption Loan Scheme: More than 57,000 companies have access to what is known as the CBILS program, with £ 12.6 billion in support.

Driving infrastructure spending: Ministers have put forward planned work on new infrastructure, decarbonization and maintenance projects worth £ 8.8 billion to stimulate the economy.

Additional help for decentralized administrations: The UK government has guaranteed that decentralized governments will receive at least £ 12.7 billion on top of their household bills in March to help pay for their coronavirus response.

Kickstart: Plans to create new roles for young people by encouraging companies to provide more training and apprenticeships will cost £ 2 billion.

Additional money for public services: In April, the Treasury Department announced that more than £ 14 billion from its coronavirus emergency fund would be used for public services, including the NHS and councils.

"Small businesses are offered a lot of loans and pay-as-you-grow terms, but debt is ultimately debt and it just increases the pressure."

The unions accused Mr. Sunak of using an adhesive bandage to cover a "gaping wound" because they said the plans did not go far enough.

Mark Serwotka, general secretary of the Public and Commercial Services Union, said the vacation program should have been extended beyond next month, claiming that the Conservatives had "ideologically resisted" government intervention to save jobs.

"Any support for jobs and key industries during this unprecedented global pandemic is welcomed," he said.

"However, the Chancellor's actions are similar to using a plaster to cover a gaping wound."

TUC Secretary General Frances O & # 39; Grady welcomed the extra help to workers under the Jobs Support Scheme, but said the deal was still ongoing.

She said, “This program will provide many businesses with a lifeline with a viable future beyond the pandemic. But there are still unfinished business.

“Unprocessed hours within the framework of the system must not be wasted. Ministers need to work with companies and unions to provide quality retraining to prepare workers for the future economy. "

John Phillips, Acting Secretary General of GMB, said, “Whether this will be enough to prevent widespread layoffs depends very much on detail and will depend not only on the jobs but also on the standard of living and people's ability to pay the bills , judged. & # 39;

Unison General Secretary Dave Prentis said the measures were "an important first step in the fight to protect jobs across the UK".

Labor claimed Mr Sunak had hurt business confidence by delaying the announcement of new support.

In the House of Commons, Ms. Dodds said: “I have asked for a system of targeted wage support 40 times. This call has been rejected 20 times by this government. It is a relief that this government has now turned around.

“But we have to be open and honest. This delay in introducing this new system has had a negative impact on business confidence.

"I know this from talking to them, and I'm sure members on the opposite bench know this from talking to companies in their constituencies."

IFS director Mr Johnson said the new job support program was "a major new government intervention in support of jobs during the crisis".

However, he warned: “But it is significantly less generous than the vacation program it replaces, although notably the Chancellor gave no indication of the likely cost of the system.

“He is trying to find a difficult path between supporting viable jobs and not retaining people in jobs that will no longer exist after the crisis breaks out.

"With employers now having to pay at least 55 percent of their employees' normal wages, it is clear that many jobs will be lost in the months ahead."

Mr Johnson had previously warned that the UK crisis meant that Mr Sunak "was still very much in blank check territory".

He suggested that the UK could end the year with two million fewer jobs than it started, and that the government's spending spree would eventually have to be paid for, and forecast "pretty hefty tax hikes" by the mid-2020s.

Mr Johnson said the end of vacation means unemployment will "rise sharply" in the coming months.

He told the BBC's Radio 4 Today, “We have already seen nearly three quarters of a million jobs drop in terms of the number of employees, and then we have at least another two million vacation failures.

& # 39; Some of them are likely to be supported by this new system, but not all.

“That means that by the end of the year I suspect we will have something like that, I don't know, but maybe two million less than at the beginning of the year, although strangely enough that doesn't seem to be translated into the official ones at the moment Unemployment figures. & # 39;

When asked whether he believed Mr Sunak should write a blank check to save the economy or try to protect the health of public finances, Mr Johnson said, “I think we are still very far strong in the blank check area. I found it very bizarre that I had to say about a month ago when everyone was talking about big tax hikes announced this fall.

“I don't think that was ever planned. We are still in a position where the economy is extremely weak, where the government, as you know, is increasing restrictions, and where the absolute focus must be on supporting the economy.

“Remember, interest rates are at lows at all times, it is extremely cheap for the government to borrow, and we are in this moment of crisis.

“That means, of course, that we have to deal with it at some point, but at some point it doesn't mean this fall and maybe not next year either.

New traffic light lock system that sends automatic alerts to phones to be used to trigger local restrictions

A traffic light system that sends automatic warnings to people's cell phones is supposed to trigger local locks.

Local infection rates are used to divide parts of the country into one of three categories that determine the restrictions in place in the area under the plan.

This system works in tandem with the NHS Test and Trace app, which includes a feature that allows users to scan a barcode to check in and out of bars and restaurants.

Users also receive notifications when lockdown conditions change due to shifts in the rate of infection, the Daily Telegraph reported.

The new plan was approved last week at a meeting of key cabinet ministers and is now awaiting approval from the prime minister.

Hopefully the system will work alongside the new set of restrictions Boris Johnson announced on Tuesday when he signs out.

A three tier system is seen as clear and provides an easy way for people to know what they can and cannot do in their fields.

“But I think later in the 2020s we're going to see some pretty hefty tax hikes to deal with. But it's really later, it's not now. & # 39;

Offizielle Statistiken, die im letzten Monat veröffentlicht wurden, zeigten, dass die Verschuldung des öffentlichen Sektors zum ersten Mal in der Geschichte über 2 Billionen Pfund Sterling gestiegen war, als die Regierung gezwungen war, Bargeld zu leihen, um die britische plc über Wasser zu halten.

Die jüngste Prognose des Amtes für Haushaltsverantwortung ergab, dass die Nettokreditaufnahme des öffentlichen Sektors für das Haushaltsjahr April 2020 bis April 2021 zwischen 263 und 391 Mrd. GBP liegen könnte. Die neuen Maßnahmen von Herrn Sunak werden den Zustand der öffentlichen Finanzen nur verschlechtern.

Wut als NHS Covid-19-App funktioniert NICHT auf iPhone 6 oder älteren Modellen

Frustrierte Briten beschwerten sich heute darüber, dass die NHS Covid Tracing App nicht auf das iPhone 6 oder ältere Modelle heruntergeladen werden kann – mit Ausnahme von Millionen von Menschen aus dem Flaggschiff der Regierung.

Social-Media-Benutzer teilten Versuche, die App auf ihr iPhone herunterzuladen, nur, um eine Fehlermeldung zu erhalten, die besagt, dass iOS 13.5 oder höher erforderlich ist.

Dieses Betriebssystem kann nur auf das iPhone 6S und neuere Modelle heruntergeladen werden – mit Ausnahme von Mobiltelefonen, die älter als fünf Jahre sind.

The app, which arrived four months late, can also be used on Android phones where it appears to work without any problems.

Aber Millionen von iPhone-Nutzern werden jetzt vom Dienst ausgeschlossen, vor dem Age UK heute gewarnt hat, dass viele ältere Menschen, die tendenziell ältere Modelle haben, dazu gehören würden.

Caroline Abrahams, die Direktorin der Wohltätigkeitsorganisation, sagte: "Es ist bedauerlich, dass Sie ein relativ neues Smartphone benötigen, um die NHS-App nutzen zu können, da viele Menschen jeden Alters keine haben, insbesondere ältere Menschen."

Gesundheitsminister Matt Hancock hatte heute Morgen wiederholt, dass das neueste Unterstützungspaket nicht ausreichen wird, um alle vor Entlassungen und alle Unternehmen vor der Schließung zu bewahren. Er sagte: "Leider können wir nicht jeden Arbeitsplatz und jedes Unternehmen schützen."

Herr Hancock sagte, die wirtschaftliche Unterstützung für den Ersatz des Urlaubsprogramms sei seit dem Sommer eingestellt worden.

Er sagte gegenüber Sky News: "Was Sie in den letzten neun Monaten seit Beginn dieser Krise gesehen haben, haben Sie eine beispiellose wirtschaftliche Unterstützung gesehen, um Arbeitsplätze am Laufen zu halten und Unternehmen zu unterstützen, die davon schrecklich betroffen sind, und wir." Ich bin fest entschlossen, dass das so weitergehen soll. & # 39;

Auf die Frage, warum der Kanzler bis fast Oktober gewartet hat, um die neuen Maßnahmen bekannt zu geben, sagte Herr Hancock: „Wir haben währenddessen gesagt, dass wir leider nicht jeden Arbeitsplatz und jedes Unternehmen schützen können.

„Aber ich denke, in Bezug auf den Zeitpunkt haben wir an dem Winterplan für die Wirtschaft und den Optionen für den Fall gearbeitet, dass die Fälle seit dem Sommer wieder zunehmen und der Premierminister die nächsten Schritte in Bezug auf die Maßnahmen festgelegt hat von der Gesundheitsseite am Dienstag kommt jetzt die Kanzlerin heute – zwei Tage später – ins Haus, um das Wirtschaftspaket für den dazugehörigen Winterplan vorzulegen. & # 39;

Herr Hancock sagte der BBC, dass die Regierung "die absolut maximale wirtschaftliche Unterstützung einsetzen" werde, die sie könnte.

Auf die Frage, warum Herr Johnson vorgeschlagen hatte, dass das jüngste Vorgehen gegen Coronaviren sechs Monate dauern könnte, sagte der Gesundheitsminister: „Ich denke, es ist wirklich wichtig, mit den Menschen gleichzusetzen. Ich denke, es ist wirklich wichtig für uns in der Regierung, die Menschen durch diese sehr schwierige Zeit zu führen und mit den Menschen klar zu sein, was wir als die bevorstehenden Probleme und den bevorstehenden Zeitplan ansehen.

„Wir wollen Hoffnung geben mit dem, was kommt – weißt du was, wir können das durchstehen – natürlich tun wir das. Aber wir brauchen diese Hoffnung auch, um im Realismus begründet zu sein, denn wenn sie nicht im Realismus begründet ist, dann ist sie nicht wahr. & # 39;

Das Urlaubsprogramm der Regierung hat dazu beigetragen, fast 10 Millionen Arbeitsplätze während der Krise zu schaffen und bis zu 80 Prozent des Lohns eines Arbeitnehmers bis zu einem Höchstbetrag von 2.500 GBP pro Monat zu decken.

Es wird derzeit abgewickelt und wird Ende nächsten Monats offiziell geschlossen, nachdem eine Rechnung von mehr als 39 Milliarden Pfund gesammelt wurde.

Herr Sunak spielte eine entscheidende Rolle, um Herrn Johnson davon zu überzeugen, diese Woche nicht sofort zu einer zweiten Sperre überzugehen.

Die Entscheidung, die Covid-Beschränkungen für den Gastgewerbesektor zu verschärfen und Millionen von Büromitarbeitern zu befehlen, bis zum Frühjahr von zu Hause aus zu arbeiten, hatte ihn jedoch unter enormen Druck gesetzt, mehr Unterstützung zu leisten.

Der Gewerkschaftsführer Sir Keir Starmer hatte die Regierung aufgefordert, bei den gestrigen PMQs "anzuhalten und zu überdenken, die betroffenen Unternehmen zu unterstützen und den Urlaub nicht zurückzuziehen".

Aber Herr Johnson hatte gesagt, das Urlaubsprogramm sei "bereits einmal verlängert" worden, und hinzugefügt: "Ich halte es nicht für sinnvoll, das derzeit bestehende Urlaubsprogramm in seiner jetzigen Form über Ende Oktober hinaus zu verlängern.

"Aber wir werden alles tun, um Unternehmen zu unterstützen und diejenigen in Jobs und in der Tat Selbstständige zu unterstützen."

Herr Johnson sagte, die Regierung habe bereits 160 Milliarden Pfund ausgezahlt, um die Wirtschaft zu stützen, wobei die Unterstützung der Unternehmen großzügiger sei als in den meisten anderen Ländern.

Der Unternehmer und ehemalige Chef von Pizza Express, Luke Johnson, erklärte gegenüber dem Newsnight-Programm der BBC, dass die Schließung des Urlaubsprogramms zu einer Zeit, als die Wirtschaft noch unter strengen Beschränkungen operierte, nächsten Monat zu Massenentlassungen führen würde. "Ich würde schätzen, dass von den drei Millionen (die sich noch im Urlaub befinden) mindestens eine Million … entlassen werden", sagte er.

Die Entscheidung, den Haushalt zu streichen, ist ein Schlag gegen die Hoffnungen des Finanzministeriums, die öffentlichen Finanzen wieder auf einen gleichmäßigeren Stand zu bringen. Herr Sunak hatte über Steuererhöhungen nachgedacht, um ein Haushaltsdefizit auszugleichen, das in diesem Jahr voraussichtlich 300 Mrd. GBP übersteigen wird. Steuerentscheidungen müssen nun jedoch bis zum nächsten Jahr verschoben werden.

Die Aufhebung des Haushaltsplans könnte auch einen Schlag für die Luftfahrtindustrie bedeuten, die auf eine Senkung der Fluggaststeuer gehofft hatte.

Ein Preis, den wir uns nicht leisten können: Milliarden für eine neue Rettungsaktion, das gestrichene Budget, ein "Auslöschen" der Hausarbeit und die Diagnose anderer Krankheiten sinken … Kritiker legen die Kosten für Boris Johnsons sechsmonatigen Kampf fest

Von Daniel Martin und Jason Groves

Die schrecklichen Kosten für Boris Johnsons sechsmonatigen Covid-Kampf wurden letzte Nacht dramatisch entlarvt.

Business chiefs and hospitality groups issued a string of dire warnings over the impact of the restrictions, saying millions of jobs were now on the line.

They said the Prime Minister's U-turn on his 'get back to work' message could spell doom for struggling high streets, with footfall plummeting and shops boarded up.

In a passionate intervention, a prominent entrepreneur said the prosperity of the nation was at stake.

In a passionate intervention to Boris Johnson’s six-month Covid clampdown, Julian Metcalfe, who founded Pret A Manger and Itsu, says the prosperity of the nation is now at stake

In a passionate intervention to Boris Johnson's six-month Covid clampdown, Julian Metcalfe, who founded Pret A Manger and Itsu, says the prosperity of the nation is now at stake

A woman wears a face masks as she stops to buy some food at a branch of Pret A Manger in Chelsea, London

A woman wears a face masks as she stops to buy some food at a branch of Pret A Manger in Chelsea, London

Julian Metcalfe, who founded Pret A Manger and Itsu, said: 'The repercussions of this six months are going to be devastating to so many, to local councils, to industry, to people all over our country.

'We have not begun to touch the seriousness of this. This talk of six months is criminal.'

Despite ballooning national debt, Rishi Sunak is preparing a multi-billion-pound 'winter economy plan' to try to protect jobs.

The Chancellor signalled the true extent of the crisis by cancelling plans for a full-scale Budget in November. Sources said he accepted the country could no longer make long-term financial decisions.

Kate Nicholls, chief executive of UK Hospitality

Emma McClarkin, chief executive of the British Beer and Pub Association

Kate Nicholls, chief executive of UK Hospitality (left) and Emma McClarkin, chief executive of the British Beer and Pub Association (right)

Despite ballooning national debt, Chancellor of the Exchequer Rishi Sunak is preparing a multi-billion-pound ‘winter economy plan’ to try to protect jobs

Despite ballooning national debt, Chancellor of the Exchequer Rishi Sunak is preparing a multi-billion-pound 'winter economy plan' to try to protect jobs

As the Archbishops of Canterbury and York warned of the economic costs of Covid:

  • Hospitality groups said a quarter of pubs and restaurants could go bust this year;
  • HMRC and Goldman Sachs were among employers abandoning their drives to get people back to the office;
  • Pictures showed high streets boarded up as shops reacted to the clampdown;
  • The travel industry faced fresh despair when Downing Street warned of the risk of booking half-term holidays;
  • Upper Crust and Caffe Ritazza are keeping two thirds of outlets shut;
  • A major study warned countless patients were living with worsening heart disease, diabetes and mental health because of the lockdown;
  • MPs demanded extra help for theatre and music venues;
  • No 10 said a ban on household visits could be extended across large swathes of England;
  • A mobile tracing app is finally being rolled out today – four months late;
  • Matt Hancock's target for half a million virus tests a day by the end of next month was under threat from equipment shortages;
  • Scientific advisers suggested that students could be told to remain on campus over Christmas.

In a dramatic television address to the nation on Tuesday, Mr Johnson announced he was abruptly dropping his call – made repeatedly since the end of lockdown – for workers to return to the office. He also told pubs and restaurants to shut their doors at 10pm, and doubled fines for not wearing a mask or failing to obey the rule of six.

He indicated the measures were likely to last for six months at least.

Mr Metcalfe led the backlash against the curbs on BBC Radio 4's World at One, saying he did not know whether Itsu could survive the measures.

Chancellor of the Exchequer Rishi Sunak (left) and Prime Minister Boris Johnson leave 10 Downing Street, for a Cabinet meeting to be held at the Foreign and Commonwealth Office (FCO) in London, ahead of MPs returning to Westminster after the summer recess on September 1

Chancellor of the Exchequer Rishi Sunak (left) and Prime Minister Boris Johnson leave 10 Downing Street, for a Cabinet meeting to be held at the Foreign and Commonwealth Office (FCO) in London, ahead of MPs returning to Westminster after the summer recess on September 1

He added: 'People who work in hotels, restaurants, takeaways and in coffee shops are devastated. A great many are closing down – we're losing thousands upon thousands of jobs.

'How long can this continue, this vague 'work from home', 'don't go on public transport'? The ramifications of this are just enormous.'

Mr Metcalfe accused the Prime Minister of 'sitting down with his Union Jack talking utter nonsense'.

He said: 'To turn to an entire nation and say 'stay at home for six months', and to spout off Churchillian nonsense about we'll make it through – it's terribly unhelpful. It should be 'we will review the situation each week, each hour'.'

Tory MP Desmond Swayne said the Government had made the wrong call, adding: 'I am concerned the cure could be worse than the disease.'

Tom Stainer, chief executive of the Campaign for Real Ale, warned the clampdown could see the closure of many pubs.

'Pub-goers and publicans alike want to stop the spread of Covid, but this curfew is an arbitrary restriction that unfairly targets the hospitality sector and will have a devastating impact on pubs, jobs and communities,' he added.

Rob Pitcher of Revolution Bars said: 'It's beyond belief that they have brought in the 10pm curfew with no evidence to back it up.'

Fashion mogul Sir Paul Smith warned the pandemic was proving devastating to his and other industries.

A former head of the civil service will today say Mr Johnson's government has proved incapable of combating Covid.

Lord O'Donnell, a crossbench peer, will say in a lecture that ministers did not use adequate data and deferred too much to medical science at the expense of behavioural and economic experts.

He will also allege there has been a lack of strong leadership and clear strategy.

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