Thursday, 24 Sep 2020 07:27 AM MYT
Sunak has ruled out a wholesale extension of the Coronavirus Job Retention Scheme, which supported 8.9 million private-sector jobs at its peak in May, but a growing second wave of Covid-19 cases has piled pressure on him to announce a replacement. “No one wanted to be in this situation but we need to respond to it,” a finance ministry source said, adding that Sunak hoped to offer reassurance to workers and businesses.
The BBC reported that Sunak would announce more financial help for people and businesses where jobs were at risk, probably through the form of wage subsidies for staff who return part-time, but would not target help at specific sectors. The Bank of England forecast last month that Britain’s unemployment rate would jump to 7.5 per cent by the end of the year if there were no replacement for the scheme, up from 4.1 per cent in the three months to July.
The Confederation of British Industry has called for Sunak to adopt a programme similar to Germany’s ‘Kurzarbeit’, which tops up the wages of staff whose hours are reduced.