Day: July 6, 2020

Changes to VAT, National Insurance or Business rates what will Rishi Sunak’s summer statement target?

On Wednesday, the chancellor will attempt to shore up Britain’s economic recovery from coronavirus as lockdown controls are lifted across most of England.

But Rishi Sunak is facing a delicate balancing act while severe risks to public health remain.

Although expectations that this will be a blockbuster summer statement are being downplayed, here are some of the policy changes the chancellor is thought to be considering for this week’s economic update.

Furlough scheme

The government is preparing to scale down the furlough scheme from the end of this month. Currently, the programme funds 80% of employees’ wages but it will end entirely in October after being trimmed from August onwards.

As many as 9.3 million jobs have been furloughed at 1.1 million companies, at a cost to the exchequer so far of £25.5bn.

Hospitality industry leaders have called for the government to extend support to the sector for longer, while

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Big Issue vendors excited to be returning to their pitches across the UK

Today up to 2,000 Big Issue vendors across England, Scotland and Wales returned eagerly to their pitches to sell the magazine for the first time since lockdown. 

The Big Issue Group (TBIG) has taken measures including the provision of extensive PPE, contactless card payment equipment and the introduction of stringent health and safety procedures in all distribution offices to ensure vendors’ and customers safety remains paramount.

The Big Issue, which offers homeless and vulnerably housed people across the UK a means by which to earn a legitimate income, took the decision to safeguard its network of vendors and the public by asking that they stop selling on streets across the whole of the UK with immediate effect on 20th March for the foreseeable future.

Following announcements by the government regarding the easing of restrictions, the organisation confirmed that magazine vendors will be back out selling the magazine for the

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4.8 million jobs return in June

Some 4.8 million jobs were added in the U.S. in June but worry remains it would not be enough to restart the economy.

Lucia Mutikani from Reuters wrote:

The U.S. economy created jobs at a record clip in June as more restaurants and bars reopened, but 31.5 million Americans were collecting unemployment checks in the middle of the month, and a resurgence in COVID-19 cases suggested the labor market could suffer a setback in July.

Record spikes in new coronavirus infections in large parts of the country, including Arizona and the highly-populated states of California, Florida and Texas, have forced several jurisdictions to scale back or pause reopenings, and send some workers back home.

Steve Peoples reported for the AP that:

The U.S. economy just posted its best single-month job gain in history.

U.S. unemployment is at one of its worst points since the Great Depression.

Both are true.

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