Britain’s treasury chief is expected to announce billions of pounds in tax cuts and spending increases to help workers and businesses hit by the coronavirus pandemic when he delivers his budget to Parliament on Wednesday
Rishi Sunak said in a tweet he will announce a three-part plan to “protect the jobs and livelihoods of the British people” when he speaks to House of Commons at 12:30 p.m. London time.
British media reports indicate Sunak will extend the furlough program, under which the government pays 80% of the wages for private employees unable to work during the pandemic. He also plans to expand grants for self-employed workers, while extending a temporary increase in welfare payments and tax relief for businesses.
Economists are already wondering about what will come next. Torsten Bell, of the Resolution Foundation, said plans need to be made to prevent levels of unemployment from skyrocketing once the furlough program ends.
“The big picture is when it comes to unemployment the more difficult part of this crisis is ahead of us rather than behind us,” he told Times Radio. “So it is true as the furlough scheme is phased out — however that phasing out is done, whether that’s via employment contributions rising or just via the scheme being brought to an end — some of those jobs won’t be there for people to go back to.”
Former International Monetary Fund chief economist Ken Rogoff compared the pandemic to a war and said the government should be looking at catastrophe relief.
“We are in the middle of a war and you should not be worrying excessively about the budget deficit and about debt,” he told the BBC about his advice to Sunak. “You can worry about that at the other side.”