cityam--2020-07-08--Top civil servant Sir Mark Sedwill hits out at 'sniping' from inside government

Britain ’ s outgoing top civil servant Sir Mark Sedwill has hit out against the culture of off-record media attacks in Westminster that saw him recently sustain a barrage of public criticism .
Sedwill had been the victim of numerous off-record briefings to the media about his role in the government ’ s handling of the coronavirus pandemic .
It has been speculated by some that the cabinet secretary was being set up to take the blame for Downing Street ’ s missteps during the crisis , and that Boris Johnson ’ s senior adviser Dominic Cummings wanted to force @ @ @ @ @ @ @ down from his dual role as cabinet secretary and national security adviser last month , after coming to an agreement with the Prime Minister .
Some media reports suggested that Cummings wanted a Brexiteer running the civil service , which he has strenuously denied .
Before the Open newsletter : Start your day with the City View podcast and key market data Sedwill told Westminster ’ s National Security Strategy Committee today that off-record attacks in the media were a “ regrettable feature of modern politics ” .
“ It ’ s never @ @ @ @ @ @ @ , particularly as an official , in the midst of stories of that kind , ” he said .
“ We appear to be in an era where some of us are fair game in the media and I ’ m afraid it goes with the territory .
I guess my successors will have to deal with some of that as well .
“ I don ’ t think it ’ s ever pleasant in government – whether it ’ s against ministers , or between them and particularly against officials – when @ @ @ @ @ @ @ ’ t really reply , particularly those which are off the record and sniping away.
” Sedwill was replaced in his role as national security adviser by the UK ’ s chief Brexit negotiator , and close Johnson ally , David Frost .
His role as cabinet secretary will be filled through a recruitment process before September .
Members of the National Security Strategy Committee questioned Sedwill as to whether Frost ’ s appointment was appropriate as he does not have a background in security or defence .
Frost is a former diplomat @ @ @ @ @ @ @ the Head of the Diplomatic Service , economic counsellor to the British embassy in Paris and British ambassador to Denmark .
Read more : Furious Theresa May attacks PM ’ s political choice for national security adviser Sedwill said today that it was not particularly unusual for the role , which was created in 2010 , to be filled by someone with diplomatic experience .
Meanwhile , the Prime Minister has nominated Sedwill for a life peerage and he is also set to lead a new G7 panel on Global Economic Security when @ @ @ @ @ @

Top civil servant Sir Mark Sedwill hits out at ‘sniping’ from inside government
Prime Minister Boris Johnson shakes hands with Sir Mark Sedwill, as he is clapped into 10 Downing Street for the first time in 2019
Britain’s outgoing top civil servant Sir Mark Sedwill has hit out against the culture of off-record media attacks in Westminster that saw him recently sustain a barrage of public criticism.
Sedwill had been the victim of numerous off-record briefings to the media about his role in the government’s handling of the coronavirus pandemic.
It has been speculated by some that the cabinet secretary was being set up to take the blame for Downing Street’s missteps during the crisis, and that Boris Johnson’s senior adviser Dominic Cummings wanted to force him from his role.
Sedwill stepped down from his dual role as cabinet secretary and national security adviser last month, after coming to an agreement with the Prime Minister.
Some media reports suggested that Cummings wanted a Brexiteer running the civil service, which he has strenuously denied.
Before the Open newsletter: Start your day with the City View podcast and key market data
Sedwill told Westminster’s National Security Strategy Committee today that off-record attacks in the media were a “regrettable feature of modern politics”.
“It’s never pleasant to find one’s self, particularly as an official, in the midst of stories of that kind,” he said.
“We appear to be in an era where some of us are fair game in the media and I’m afraid it goes with the territory. I guess my successors will have to deal with some of that as well.
“I don’t think it’s ever pleasant in government – whether it’s against ministers, or between them and particularly against officials – when you have briefings to which you can’t really reply, particularly those which are off the record and sniping away.”
Sedwill was replaced in his role as national security adviser by the UK’s chief Brexit negotiator, and close Johnson ally, David Frost.
His role as cabinet secretary will be filled through a recruitment process before September.
Members of the National Security Strategy Committee questioned Sedwill as to whether Frost’s appointment was appropriate as he does not have a background in security or defence.
Frost is a former diplomat who has served as private secretary to the Head of the Diplomatic Service, economic counsellor to the British embassy in Paris and British ambassador to Denmark.
Sedwill said today that it was not particularly unusual for the role, which was created in 2010, to be filled by someone with diplomatic experience.
Meanwhile, the Prime Minister has nominated Sedwill for a life peerage and he is also set to lead a new G7 panel on Global Economic Security when he steps down in September.


cityam--2020-07-08--Budget deficit to surge past £300bn after  Sunak stimulus, says IFS

The UK ’ s budget deficit is set to rise further past the unprecedented £300bn mark after chancellor Rishi Sunak ’ s £30bn spending package of VAT cuts and job support programmes , the Institute for Fiscal Studies ( IFS ) think tank has said .
It said such a high pile of debt meant future statements from the chancellor “ are likely to involve a less pleasant set of announcements ” .
Yet the IFS said that with borrowing costs at record lows , “ those decisions can – and should – be left for another year ” .
@ @ @ @ @ @ @ at heart of Rishi Sunak ’ s £30bn spending spree Sunak today announced another huge round of stimulus measures in a summer statement .
He launched a “ job retention bonus ” programme worth up to £9bn that will pay companies to take back furloughed workers .
He slashed VAT in the hospitality and to five per cent for six months .
And he announced a holiday for the stamp duty property tax , raising the payment threshold to £500,000 .
On top of this , he introduced a novel ‘ dine out @ @ @ @ @ @ @ give people steep discounts if they eat out .
This is aimed at helping the bruised hospitality sector .
The package could cost up to £30bn , depending on the uptake of the schemes , the Treasury said .
It would take total government spending on coronavirus to close to £190bn so far .
Budget deficit to go well past WWII levels IFS deputy director Carl Emmerson said : “ There is a huge amount of uncertainty around the public finances – but these measures are likely to push the deficit further above @ @ @ @ @ @ @ would be easily the highest as a share of national income since the Second World War ” .
However , he said : “ Of course this additional borrowing is all currently being borrowed at very low interest rates.
” The Bank of England has slashed interest rates and lowered borrowing costs across the economy by creating money to buy hundreds of billions of pounds worth of bonds .
It has sent the UK government ’ s borrowing costs plunging .
Read more : Rishi Sunak Summer Statement : All the Chancellor ’ @ @ @ @ @ @ @ IFS said the soaring levels of public debt are likely to need addressing because the economy is unlikely to fully recover from the Covid hit .
Yet Emmerson said it was not an immediate worry .
“ Those decisions can – and should – be left for another year , ” he said .
Package ‘ focussed on the right things ’ Paul Johnson , director of the IFS , said Sunak ’ s stimulus package “ was focussed on the right things , such as jobs for the young ” .
His @ @ @ @ @ @ @ esteem in which the IFS – a think tank that analyses taxes and spending – is held .
However , Johnson suggested that “ much of the job retention bonus cash will be paid in respect of employees who would have , or indeed have already , returned to work anyway ” .
He said this “ reflects how hard it is to target resources only where they are really needed ” .
Read more : Hospitality sector welcomes ‘ blaze of sunshine ’ from chancellor ’ s VAT cut On the VAT @ @ @ @ @ @ @ , Helen Miller , also an IFS deputy director , said : “ Social distancing will remain a constraint in many cases.
” She said : “ Here the measures will simply be a giveaway to consumers and firms – a giveaway not targeted at those who are struggling most .
”

Budget deficit to surge past £300bn after Sunak stimulus, says IFS
The Bank of England’s actions have ensured government borrowing costs remain extremely low
The UK’s budget deficit is set to rise further past the unprecedented £300bn mark after chancellor Rishi Sunak’s £30bn spending package of VAT cuts and job support programmes, the Institute for Fiscal Studies (IFS) think tank has said.
It said such a high pile of debt meant future statements from the chancellor “are likely to involve a less pleasant set of announcements”. Yet the IFS said that with borrowing costs at record lows, “those decisions can – and should – be left for another year”.
Sunak today announced another huge round of stimulus measures in a summer statement. He launched a “job retention bonus” programme worth up to £9bn that will pay companies to take back furloughed workers.
He slashed VAT in the hospitality and to five per cent for six months. And he announced a holiday for the stamp duty property tax, raising the payment threshold to £500,000.
On top of this, he introduced a novel ‘dine out to help out’ scheme which will give people steep discounts if they eat out. This is aimed at helping the bruised hospitality sector.
The package could cost up to £30bn, depending on the uptake of the schemes, the Treasury said. It would take total government spending on coronavirus to close to £190bn so far.
Budget deficit to go well past WWII levels
IFS deputy director Carl Emmerson said: “There is a huge amount of uncertainty around the public finances – but these measures are likely to push the deficit further above £300 billion.”
He said that “would be easily the highest as a share of national income since the Second World War”.
However, he said: “Of course this additional borrowing is all currently being borrowed at very low interest rates.”
The Bank of England has slashed interest rates and lowered borrowing costs across the economy by creating money to buy hundreds of billions of pounds worth of bonds. It has sent the UK government’s borrowing costs plunging.
Despite this, the IFS said the soaring levels of public debt are likely to need addressing because the economy is unlikely to fully recover from the Covid hit.
Yet Emmerson said it was not an immediate worry. “Those decisions can – and should – be left for another year,” he said.
Package ‘focussed on the right things’
Paul Johnson, director of the IFS, said Sunak’s stimulus package “was focussed on the right things, such as jobs for the young”.
His verdict will please the government given the esteem in which the IFS – a think tank that analyses taxes and spending – is held.
However, Johnson suggested that “much of the job retention bonus cash will be paid in respect of employees who would have, or indeed have already, returned to work anyway”.
He said this “reflects how hard it is to target resources only where they are really needed”.
On the VAT cuts and vouchers for the hospitality sector, Helen Miller, also an IFS deputy director, said: “Social distancing will remain a constraint in many cases.”
She said: “Here the measures will simply be a giveaway to consumers and firms – a giveaway not targeted at those who are struggling most.”


cityam--2020-07-08--FTSE 100 slips despite Chancellor's raft of new stimulus measures

The FTSE 100 closed lower on Wednesday , even after the Chancellor unveiled a £30bn stimulus package to get consumers spending again .
London ’ s blue-chip index closed down 0.55 per cent at 6,156 points after a muted day of trading .
The FTSE 250 index of slightly smaller companies finished the day 0.95 per cent lower .
Read more : Rishi Sunak Summer Statement : All the Chancellor ’ s spending pledges It came after UK chancellor Rishi Sunak ’ s summer statement in which he introduced a £30bn package to help the economy bounce back .
“ @ @ @ @ @ @ @ to stimulus in places… wasn ’ t robust enough to distract European investors from the continued acceleration of global covid-19 cases , ” said Spreadex analyst Connor Campbell .
The market ’ s muted reaction to the fresh stimulus measures may also be because the Treasury had trailed a number of the announcements earlier this week .
The stamp duty holiday received little attention from FTSE 100 investors since it had been widely anticipated .
Housebuilder Taylor Wimpey surged on the back of the speech before closing down 1.77 per cent .
FTSE @ @ @ @ @ @ @ after Sunak ’ s speech .
Read more : New job retention bonus at heart of Rishi Sunak ’ s £30bn spending spree The surprise announcement of the “ Eat Out to Help Out ” scheme , which will provide a 50 per cent discount for sit down meals in cafes , restaurants and pubs , helped the markets somewhat paired with a drastic cut in VAT .
The Restaurant Group jumped on the news before plunging 4.03 per cent by the end of the day .
While a headline-grabbing offering , it @ @ @ @ @ @ @ longrun .
“ The VAT cut may entice some visitors but the Monday-Wednesday time frame and £10 limit for the month of August on dining out may not move the dial much , ” said Russ Mould , investment director at AJ Bell .
Investors ’ caution may be because “ for an economy so reliant on consumer spending , these are just trifles , of little use if consumers remain worried about the longer-term outlook for jobs ad spending , ” said Chris Beauchamp , chief market analyst at IG .
Read @ @ @ @ @ @ @ ’ stimulus to come from Rishi Sunak in autumn US stocks inch up on rebound hopes Wall Street opened more positively than the FTSE despite recording another increase in infections .
“ The UK just reminded Wall Street that the global stock market rally is not likely going away anytime soon as governments globally will now be delivering massive fiscal stimulus responses , ” said Edward Moya , senior market analyst at Oanda .
The benchmark S & P 500 is up 0.17 per cent while the Dow Jones is just 0.06 per @ @ @ @ @ @ @ leading US stocks , gaining 0.73 per cent .
The jump in cases in the US , which was also seen in Texas , spooked Wall Street yesterday .
The S & P 500 dropped 1.1 per cent and the Dow Jones finished down 1.5 per cent .
It brought a five-day rally to an end .
“ The focus for the US continues to be the economic recovery , which has outweighed a rise in cases that has become the latest bit of bad news to be shrugged off by a market @ @ @ @ @ @ @ positive overspill from the Fed ’ s liquidity operations , ” Beauchamp said .
Get the news as it happens by following City A.M. on Twitter .

FTSE 100 slips despite Chancellor’s raft of new stimulus measures
The FTSE 100 closed lower on Wednesday, even after the Chancellor unveiled a £30bn stimulus package to get consumers spending again.
London’s blue-chip index closed down 0.55 per cent at 6,156 points after a muted day of trading. The FTSE 250 index of slightly smaller companies finished the day 0.95 per cent lower.
It came after UK chancellor Rishi Sunak’s summer statement in which he introduced a £30bn package to help the economy bounce back.
“The mini-budget – which took a Groupon-approach to stimulus in places… wasn’t robust enough to distract European investors from the continued acceleration of global covid-19 cases,” said Spreadex analyst Connor Campbell.
The market’s muted reaction to the fresh stimulus measures may also be because the Treasury had trailed a number of the announcements earlier this week.
The stamp duty holiday received little attention from FTSE 100 investors since it had been widely anticipated. Housebuilder Taylor Wimpey surged on the back of the speech before closing down 1.77 per cent.
FTSE 250-listed Savills was up 2.5 per cent after Sunak’s speech.
The surprise announcement of the “Eat Out to Help Out” scheme, which will provide a 50 per cent discount for sit down meals in cafes, restaurants and pubs, helped the markets somewhat paired with a drastic cut in VAT.
The Restaurant Group jumped on the news before plunging 4.03 per cent by the end of the day.
While a headline-grabbing offering, it may not be so attractive in the longrun. “The VAT cut may entice some visitors but the Monday-Wednesday time frame and £10 limit for the month of August on dining out may not move the dial much,” said Russ Mould, investment director at AJ Bell.
Investors’ caution may be because “for an economy so reliant on consumer spending, these are just trifles, of little use if consumers remain worried about the longer-term outlook for jobs ad spending,” said Chris Beauchamp, chief market analyst at IG.
US stocks inch up on rebound hopes
Wall Street opened more positively than the FTSE despite recording another increase in infections.
“The UK just reminded Wall Street that the global stock market rally is not likely going away anytime soon as governments globally will now be delivering massive fiscal stimulus responses,” said Edward Moya, senior market analyst at Oanda.
The benchmark S&P 500 is up 0.17 per cent while the Dow Jones is just 0.06 per cent higher. The tech-heavy Nasdaq is leading US stocks, gaining 0.73 per cent.
The jump in cases in the US, which was also seen in Texas, spooked Wall Street yesterday. The S&P 500 dropped 1.1 per cent and the Dow Jones finished down 1.5 per cent. It brought a five-day rally to an end.
“The focus for the US continues to be the economic recovery, which has outweighed a rise in cases that has become the latest bit of bad news to be shrugged off by a market focused on good news and on the positive overspill from the Fed’s liquidity operations,” Beauchamp said.
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-07-08--VAT rate cut: implementation for businesses will be more complicated than it appears

The Chancellor ’ s announcement is a welcome and targeted measure for the hospitality and leisure sector which has been impacted by COVID-19 and this VAT reduction from 20 % to 5 % is designed to help stimulate spending .
Prior to the announcement , there had been speculation that there would be a general rate cut – which we have recently seen in an increasing number of countries .
Given the limited impact the last cut to the VAT rate had in 2008 , and that , under the terms of the withdrawal agreement with the EU , the @ @ @ @ @ @ @ % , it is not surprising that the Chancellor has restricted the measure .
It does not of course rule out a further cut in the future if consumer spending needs further stimulus .
Although this is a targeted response , implementation will be more complicated than it appears .
There is a body of case law around when is food not food but catering , and already there is confusion among retail outlets over the categorisation of certain product offerings that contain both hot food and alcohol , for example the pie @ @ @ @ @ @ @ in VAT will not apply to any alcoholic beverage , so outlets offering alcohol and food combinations will need to carry out product reviews immediately to be ready in time for next Wednesday .
Read more : Tax less , spend more – assessing the Chancellor ’ s Summer Statement Other businesses may be unwittingly caught by this – shops that have a restaurant ; hospitals that provide catering and all businesses will need to determine if both purchases and supplies fall within the new reduced rate or not .
Webcast , 14 @ @ @ @ @ @ @ change for businesses Based on experiences in 2008 , the impact to business is much more than a simple change of rate in accounting systems .
This will cut across the whole end-to-end VAT reporting cycle , processes , systems and data that businesses , however large or small , must adhere to .
There will be many operational questions including how to treat pre-payments for accommodation and supplies that apply to the rate change .

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VAT rate cut: implementation for businesses will be more complicated than it appears
Based on experience in 2008 with the global financial crisis, the impact to business is much more than a simple change of rate in accounting systems.(Photo by TOLGA AKMEN/AFP via Getty Images)
The Chancellor’s announcement is a welcome and targeted measure for the hospitality and leisure sector which has been impacted by COVID-19 and this VAT reduction from 20% to 5% is designed to help stimulate spending.
Prior to the announcement, there had been speculation that there would be a general rate cut – which we have recently seen in an increasing number of countries. Given the limited impact the last cut to the VAT rate had in 2008, and that, under the terms of the withdrawal agreement with the EU, the maximum reduction would have been to 15%, it is not surprising that the Chancellor has restricted the measure. It does not of course rule out a further cut in the future if consumer spending needs further stimulus.
Podcast: Listen to EY’s Mats Persson (Chief of Staff to former Chancellor Sajid Javid and Special Advisor to former Prime Minister David Cameron 2015-16) and Chris Sanger discuss the stimulus package
Although this is a targeted response, implementation will be more complicated than it appears. There is a body of case law around when is food not food but catering, and already there is confusion among retail outlets over the categorisation of certain product offerings that contain both hot food and alcohol, for example the pie and a pint offer. The reduction in VAT will not apply to any alcoholic beverage, so outlets offering alcohol and food combinations will need to carry out product reviews immediately to be ready in time for next Wednesday.
Read more: Tax less, spend more – assessing the Chancellor’s Summer Statement
Other businesses may be unwittingly caught by this – shops that have a restaurant; hospitals that provide catering and all businesses will need to determine if both purchases and supplies fall within the new reduced rate or not.
Webcast, 14 July: Practical impacts of the VAT change for businesses
Based on experiences in 2008, the impact to business is much more than a simple change of rate in accounting systems. This will cut across the whole end-to-end VAT reporting cycle, processes, systems and data that businesses, however large or small, must adhere to. There will be many operational questions including how to treat pre-payments for accommodation and supplies that apply to the rate change.


cityam--2020-07-08--Rishi Sunak Summer Statement: All the Chancellor's spending pledges

Chancellor Rishi Sunak today announced a raft of measures in his Summer Statement in a bid to help the UK economy recover from the worst effects of coronavirus .
The Treasury boss revealed massive public spending to bolster the UK economy in what people are calling his mini-Budget .
While he did not extend the government ’ s furlough scheme beyond October , he vowed to pay employers £1,000 for every member of staff they keep on in a move that could cost £9bn .
Read more : Rishi Sunak ’ s mini-Budget : Everything the chancellor announced And the @ @ @ @ @ @ @ measures including traineeships and £2bn to get young people into work .
Meanwhile , stamp duty will be abolished for properties worth under £500,000 until 31 March 2021 .
The government also promised to slash VAT from 20 per cent to just five per cent to help Britain ’ s teetering hospitality industry .
And the Treasury will pay for meal vouchers that let Brits eat out for half price in many UK restaurants throughout August .
Check out our handy summary of everything Sunak announced , or view our infographic below : @ @ @ @ @ @ @ the latest updates .
Thanks everybody for following our live blog today .
We ’ ll leave you with some links to the big City reaction and our coverage of all today ’ s announcements as we all begin to wonder just how , and when , we ’ ll pay for all this unprecedented government largesse .
Read more : City bets on more ‘ enormous ’ stimulus to come in autumn Here ’ s what Sunak announced in his Summer Statement today : • VAT cut from 20 to five per @ @ @ @ @ @ @ Studies director Paul Johnson earlier .
Here ’ s his deputy , Carl Emmerson , warning of “ huge uncertainty ” in what all this spending means for UK debt .
Rishi Sunak ’ s stimulus failed to lift London ’ s FTSE 100 out of the red this afternoon .
The chancellor ’ s huge spending plans couldn ’ t drag the UK index off a 0.7 per cent drop to 6,147 points .
Housebuilders enjoyed an increase from the stamp duty tax cut , but wider global concerns about the rising @ @ @ @ @ @ @ lower .
However , as Sunak himself noted , this is likely not the last of his coronavirus-induced spending plans .
An autumn Budget later this year will likely see more public support measures – especially with unemployment set to rocket once furlough ends .
Chris Beauchamp , chief market analyst at trading platform IG , said pubs , estate agents , retailers and housebuilders were the main beneficiaries today .
But he added : “ Today ’ s statement is clearly not the last word Mr Sunak will have on the subject @ @ @ @ @ @ @ been contained but the economic shockwaves continue to resonate , requiring further spending injections to support the economy .
“ It might not be much , but it is a start , and it is encouraging to see monetary and fiscal policy going hand-in-hand , especially now that the former has done its job in staving off a crisis over the past three months.
” Read more : FTSE 100 slips despite Chancellor ’ s raft of new stimulus measures 2.23pm Is £1,000 enough to stave off unemployment ?
And Matt McDonald , @ @ @ @ @ @ @ Masons , warned the £1,000 cash incentive to recall furloughed staff is not enough to tempt struggling firms from making redundancies .
“ Whilst the furlough scheme undoubtedly avoided widespread redundancies at the outset of lockdown , in recent weeks we have seen a rise in employers forced to resort to redundancies , ” he said .
“ As such , any attempt to mitigate this trend is welcomed .
However , redundancies are generally carefully considered decisions which take into account the medium to long term future of the business .
It @ @ @ @ @ @ @ majority of cases , a relatively small cash injection such as this is going to significantly change employers ’ plans.
” But while she welcomed the VAT cut and meal voucher scheme , she called for more support of SMEs , referencing the CBI ’ s own recent growth indicator data .
“ Many viable firms are facing maximum jeopardy right now , ” she said .
“ The job retention bonus will help firms protect jobs .
But with nearly 70 per cent of firms running low on cash , and three @ @ @ @ @ @ @ more immediate direct support for firms , from grants to further business rates relief , is still urgently needed .
“ The chancellor must continue to balance the need to invest in a long-term , sustainable recovery while responding to the urgent challenges that companies are experiencing today.
” 1.55pm IFS : Much of £9bn end-of-furlough cash will be wasted Director of the Institute for Fiscal Studies , Paul Johnson , told the BBC he was shocked at a huge increase in public spending .
Sunak today announced £50bn in public services spending @ @ @ @ @ @ @ on PPE for public sector staff .
“ Last time we looked that number was about £18bn – suddenly an extra £30bn has appeared in his numbers , ” Johnson said .
“ There is another £10bn allocated to testing and tracing .
It is quite surprising that very big amount of money was skated over so quickly.
” He also appeared sceptical of the government ’ s £9bn scheme to reward employers who bring staff back off furlough .
“ Surprising aspect of the jobs retention bonus is it ’ s payable @ @ @ @ @ @ @ any point even if already back at work , ” he said on Twitter .
“ You ’ d think a lot of this spending will be pure deadweight – going to employers who have already/would anyway bring workers back.
” Johnson also questioned the effectiveness of the VAT cut and vouchers to eat out .
He believes the impact of those measures could be hurt by social distancing rules limiting restaurants ’ capacity .
1.37pm Diners to receive 50 per cent restaurant discount through August Read more : Date night discount : @ @ @ @ @ @ @ out in August Sunak has also announced a 50 per cent discount on meals in participating restaurants in August .
The half price meals , from Monday to Wednesday , will see the discount extend to £19 oer head for adults and children as he hopes to encourage people to eat out as the hospitality sector tries to recover .
Torsten Bell , of the left-leaning Resolution Foundation think tank , welcomed the initiative , but said it was “ far too small in scale to have the lasting macro impact we need @ @ @ @ @ @ @ could go to the wall ’ Shadow chancellor Dodds also criticised Sunak for failing to announce sector-specific support for industries like travel and tourism .
And she took aim at the chancellor for failing to outline any new support for struggling SMEs .
Instead Sunak has , she said , left major decisions on support until the autumn Budget .
“ This will risk many SMEs going to the wall , ” she added .
The shadow chancellor is quick to admonish the government for not having an even more detaild plan through @ @ @ @ @ @ @ Labour : Chancellor has ‘ put off big decisions ’ in summer statement “ Today should have been the day when millions of British people worried about their jobs and their prospects had a load taken off their shoulders , ” she said .
“ It should have been the day when we got the UK economy firing again .
“ Britain should have had a back to work budget , but instead we got this summer statement with many of the big decisions put off until later as the benches opposite know @ @ @ @ @ @ @ stamp duty holiday – which will remove the tax on properties under £500,000 until 31 March .
Jonathan Hopper , CEO of Garrington Property Finders , said the stamp duty cut shows the housing market is “ once again being enlisted to prop up the economy ” .
“ Chancellors through the ages have used the housing market as a stimulus , and Mr Sunak made clear this radical cut in Stamp Duty has one goal in mind – to boost confidence and get people , and the economy , moving again , @ @ @ @ @ @ @ big cut in the cost of buying a home will give a welcome shot in the arm to a property market which is still reeling from the impact of the pandemic , and there is huge relief that the changes are effective immediately.
” However , he pointed out that the stimulus is “ another demand-side measure ” like Help to Buy .
“ While the jury is out on how much such schemes boost sales , it ’ s generally agreed they push up prices , ” he warned .
“ While @ @ @ @ @ @ @ for voters ’ confidence , they shouldn ’ t be an end in themselves.
” 1.14pm VAT cut on hospitality and tourism cut from 20 to 5 per cent VAT will be cut for all hospitality and tourism businesses from 20 per cent to 5 per cent until 12 January .
Sunak says it will be a “ £4bn catalyst ” that will benefit over 150,000 businesses and consumers and help protect 2.4m jobs .
“ We need to give these businesses the confidence to know if they open up…demand will be there @ @ @ @ @ @ @ said .
Read more : Sunak slashes VAT on hospitality and tourism to five per cent Stamp duty will only be paid on houses worth more than £500,000 until 31 March next year .
Sunak says the measure will save an average of £4,500 for each buyer and that nine out of ten people will pay no stamp duty thanks to the temporary change .
The stamp duty threshold is currently £125,000 , so today ’ s announcement marks a substantial increase from this level .
Sunak hopes it will massively boost the @ @ @ @ @ @ @ two major house price indexes respectively found UK house prices have suffered their longest dip since 2010 , and their first fall since the financial crisis .
Read more : Stamp duty holiday : Chancellor confirms immediate property tax changes An already announced £3bn green jobs plan is also confirmed .
The government will spend £2bn to subsidise households to make their homes more energy efficient .
A further £1bn will be spent on “ funding for energy efficiency of public sector buildings ” , Sunak says .
The chancellor has announced a @ @ @ @ @ @ @ apprenticeships .
Companies will get up to £2,000 to take on apprentices , while companies will receive £1,000 to take on new trainees .
The Department for Work and Pensions will also get another £1bn in funding to deal with increased unemployment .
Sunak goes on to announce the already trailed Kickstart Scheme .
The £2bn scheme will see the government create an estimated 350,000 jobs for young Britons .
It is available for 16-24-year-olds on Universal Credit who will receive 25 hours of pay a week from the government on the National @ @ @ @ @ @ @ six months and Sunak says there will be no cap on places or funding for the scheme .
The government ’ s economic plan will include an incentive for companies to bring back furloughed employees .
Employers will receive £1,000 per employee they bring back from furlough and keep employed until January .
“ It is vital people aren ’ t returning for the sake of it – they need to be doing decent work , ” he said .
“ For businesses to get this bonus the employee must be paid 520 @ @ @ @ @ @ @ to January .
“ If employers bring back all 9m people that have been furloughed , this would be a £9bn policy to retain people in work.
” 12.46pm Furlough scheme ‘ can not and should not ’ go on forever The chancellor confirms there will be no extension to the government ’ s wage subsidy scheme beyond October .
“ The truth is that calling for endless extensions to the furlough scheme is just as irresponsible as it would have been to end the scheme overnight in June , ” he said @ @ @ @ @ @ @ gives people false hope that they will be able to return to the jobs they had before.
” Sunak takes the despatch box and says that “ no one will be left without hope ” in the country ’ s economic recovery plan .
“ Our plan has a clear goal – to protect , support and create jobs , ” he said .
“ We entered this crisis unencumbered by dogma and we continue in this spirit , driven by the simple desire to do what is right.
” 12.18pm Prime Minister @ @ @ @ @ @ @ Starmer finishes his questions by asking if the government will U-turn on its decision to re-implement NHS parking charges for frontline workers after the pandemic ends .
He said that after the pandemic the government will “ get on ” with their manifesto commitment to make parking free for all patients who need it , but no mention of workers .
Read more : ‘ A weekly test of showmanship ’ : Does PMQs shape public opinion ?
He also unleashed an attack on Starmer for alleged flip-flopping .
“ May I suggest @ @ @ @ @ @ @ it free somewhere else , ” he said .
“ We know how it works – he takes one brief one week , one brief the next .
“ He ’ s consistent only in his opportunism while we get on with our agenda.
” Before today ’ s economic statement we have got the weekly duel between Boris Johnson and Sir Keir Starmer at Prime Minister ’ s Questions .
Starmer opened the proceedings by demanding an apology for the Prime Minister ’ s comments effectively blaming care homes for the 20,000+ @ @ @ @ @ @ @ .
Johnson refused to apologise , but takes full responsibility for the fallout of coronavirus .
“ The last thing I want to do is blame care workers for what has happened or for any of them to think i was blaming them , ” he said .
“ I take full responsibility for what has happened .
The one thing nobody knew early on in this pandemic is that the virus was being passed asymptomatically from person to person as it is.
” Shadow chancellor Anneliese Dodds will give Labour ’ s @ @ @ @ @ @ @ finishes delivering his statement .
Dodds is expected to demand a guarantee that no new taxes are imposed during the coronavirus recovery , despite earlier speculation that Labour would call for wealth taxes .
Read more : Labour calls for no tax rises to pay for coronavirus spending Dodds is expected to respond to the chancellor ’ s mini budget by saying that Labour is “ not calling for tax rises – we are calling for growth ” .
The shadow chancellor is expected demand the Tories ’ manifesto promise of a tax @ @ @ @ @ @ @ tax , National Insurance or VAT – is fulfilled , despite the government ’ s ballooning budget deficit .
The comments come as a surprise , after she told the Mirror that those with the “ broadest shoulders ” should be forced to help pay for the government ’ s wide ranging spending programmes .
Dodds ’ statement marks a break from the party ’ s 2019 election manifesto , which proposed the UK ’ s top tax bracket be slashed from a threshold of £150,000 to £80,000 .
Read more : ‘ @ @ @ @ @ @ @ faction ’ : Anneliese Dodds on her plan to unite Labour under a new economic platform She is expected to say : “ The Tory manifesto committed to no rises in income tax , National Insurance or VAT and therefore it is for them to set out how any additional spending will be paid for .
“ It ’ s the chancellor ’ s job to make sure the economy bounces back from this crisis so there is money in the coffers to protect the public finances.
” The shadow chancellor is also @ @ @ @ @ @ @ the government ’ s furlough scheme to provide targeted support for the most vulnerable industries .
The government ’ s coronavirus wage subsidy scheme will begin to wind down in September and end in October for all sectors .
Dodds is expected to say : “ The money sunk into the Job Retention Scheme must not have merely served to postpone unemployment .
“ The scheme must now live up to its name – supporting employment in industries which are viable in the long term.
” Summer Statement : What we know so @ @ @ @ @ @ @ Sunak last night announced a massive £2bn unemployment scheme focused on creating hundreds of thousands of jobs for Britain ’ s young people .
The coronavirus support package will subsidise jobs for 16 to 24-year-olds receiving Universal Credit benefits .
Read more : Rishi Sunak reveals £2bn unemployment scheme to create hundreds of thousands of jobs For each job on the scheme , the Treasury will pay 100 per cent of the National Minimum Wage for 25 hours a week .
That would see young people earn up to £205 a week , @ @ @ @ @ @ @ .
The scheme could result in 350,000 jobs for young people , according to the left-wing Resolution Foundation think tank .
Another much-reported announcement is that Sunak may order a temporary stamp duty holiday to bolster the housing market .
Currently buyers pay the tax on any properties worth over £125,000 .
But Sunak ’ s reported plans would see the threshold raised to either £300,000 or £500,000 , offering a huge incentive to buyers to act now .
Initial reports suggested the stamp duty cut would not take place until October .
@ @ @ @ @ @ @ could take effect immediately .
The chancellor is also set to reveal a £3bn green investment package to create jobs and upgrade buildings .
Energy efficiency in schools and hospitals will be the target of £1bn of the cash .
The £2bn will be spent on making UK homes more environmentally friendly , something the Treasury hopes will provide work for thousands of construction workers .
Another trailed announcement is a £111m investment to triple traineeships for Britain ’ s youth .
The Institute for Fiscal Studies has warned young people face the @ @ @ @ @ @ @ and firms will get a £1,000 bonus for each trainee they take on .
Last week the Prime Minister compared his own £5bn infrastructure spending pledge to a Franklin D Roosevelt economic splurge .
While economists were quick to point out that Johnson ’ s sum was far smaller , industries welcomed his promise that the UK would “ build , build , build ” its way out of its economic crisis .

Rishi Sunak Summer Statement: All the Chancellor’s spending pledges
Chancellor Rishi Sunak is set to maintain the Tories’ triple tax lock pledge
Chancellor Rishi Sunak today announced a raft of measures in his Summer Statement in a bid to help the UK economy recover from the worst effects of coronavirus.
The Treasury boss revealed massive public spending to bolster the UK economy in what people are calling his mini-Budget.
While he did not extend the government’s furlough scheme beyond October, he vowed to pay employers £1,000 for every member of staff they keep on in a move that could cost £9bn.
And the chancellor outlined a host of other employment measures including traineeships and £2bn to get young people into work.
Meanwhile, stamp duty will be abolished for properties worth under £500,000 until 31 March 2021.
The government also promised to slash VAT from 20 per cent to just five per cent to help Britain’s teetering hospitality industry.
And the Treasury will pay for meal vouchers that let Brits eat out for half price in many UK restaurants throughout August.
Check out our handy summary of everything Sunak announced, or view our infographic below:
The key points – Stamp duty threshold raised to £500,000 until March 2021
– Hospitality VAT cut to 5 per cent
– Extra £30bn of public spending
– Inc. £9bn end-of-furlough bonus
– £2bn for youth employment
– £3bn green infrastructure budget
Please refresh this page manually to read the latest updates.
4.45pm Thanks, and goodbye
Thanks everybody for following our live blog today.
We’ll leave you with some links to the big City reaction and our coverage of all today’s announcements as we all begin to wonder just how, and when, we’ll pay for all this unprecedented government largesse.
Here’s what Sunak announced in his Summer Statement today:
4.35pm IFS warns of ‘huge uncertainty’ for public finances
We heard from Institute for Fiscal Studies director Paul Johnson earlier. Here’s his deputy, Carl Emmerson, warning of “huge uncertainty” in what all this spending means for UK debt.
There is a huge amount of uncertainty around the public finances – but these measures are likely to push the deficit further above £300 billion, which would be easily the highest as a share of national income since the Second World War. Of course this additional borrowing is all currently being borrowed at very low interest rates. What matters more for the public finances will be the extent to which the economy manages to bounce-back strongly. If – as is likely – the economy does not fully recover then future fiscal events are likely to involve a less pleasant set of announcements over the extent to which taxes need to rise to restore the health of the public finances. But those decisions can – and should – be left for another year. IFS deputy director Carl Emmerson
4.15pm FTSE 100 remains muted despite spending spree
Rishi Sunak’s stimulus failed to lift London’s FTSE 100 out of the red this afternoon.
The chancellor’s huge spending plans couldn’t drag the UK index off a 0.7 per cent drop to 6,147 points.
Housebuilders enjoyed an increase from the stamp duty tax cut, but wider global concerns about the rising risk of a second spike dragged stocks lower.
However, as Sunak himself noted, this is likely not the last of his coronavirus-induced spending plans. An autumn Budget later this year will likely see more public support measures – especially with unemployment set to rocket once furlough ends.
Chris Beauchamp, chief market analyst at trading platform IG, said pubs, estate agents, retailers and housebuilders were the main beneficiaries today.
But he added: “Today’s statement is clearly not the last word Mr Sunak will have on the subject. The initial virus spread may have been contained but the economic shockwaves continue to resonate, requiring further spending injections to support the economy.
“It might not be much, but it is a start, and it is encouraging to see monetary and fiscal policy going hand-in-hand, especially now that the former has done its job in staving off a crisis over the past three months.”
2.23pm Is £1,000 enough to stave off unemployment?
And Matt McDonald, an employment law senior associate at Pinsent Masons, warned the £1,000 cash incentive to recall furloughed staff is not enough to tempt struggling firms from making redundancies.
“Whilst the furlough scheme undoubtedly avoided widespread redundancies at the outset of lockdown, in recent weeks we have seen a rise in employers forced to resort to redundancies,” he said.
“As such, any attempt to mitigate this trend is welcomed. However, redundancies are generally carefully considered decisions which take into account the medium to long term future of the business. It is unlikely that, in the vast majority of cases, a relatively small cash injection such as this is going to significantly change employers’ plans.”
2.05pm CBI: SMES face ‘maximum jeopardy’
Meanwhile, CBI director-general Carolyn Fairbairn backed Sunak’s stance on prioritising jobs.
But while she welcomed the VAT cut and meal voucher scheme, she called for more support of SMEs, referencing the CBI’s own recent growth indicator data.
“Many viable firms are facing maximum jeopardy right now,” she said. “The job retention bonus will help firms protect jobs. But with nearly 70 per cent of firms running low on cash, and three in four reporting lack of demand, more immediate direct support for firms, from grants to further business rates relief, is still urgently needed.
“The chancellor must continue to balance the need to invest in a long-term, sustainable recovery while responding to the urgent challenges that companies are experiencing today.”
1.55pm IFS: Much of £9bn end-of-furlough cash will be wasted
Director of the Institute for Fiscal Studies, Paul Johnson, told the BBC he was shocked at a huge increase in public spending.
Sunak today announced £50bn in public services spending, with a massive £15m being spent on PPE for public sector staff.
“Last time we looked that number was about £18bn – suddenly an extra £30bn has appeared in his numbers,” Johnson said.
Surprising aspect of the jobs retention bonus is it's payable in respect of any employee furloughed at any point even if already back at work. You'd think a lot of this spending will be pure deadweight – going to employers who have already/would anyway bring workers back — Paul Johnson (@PJTheEconomist) July 8, 2020
“There is another £10bn allocated to testing and tracing. It is quite surprising that very big amount of money was skated over so quickly.”
He also appeared sceptical of the government’s £9bn scheme to reward employers who bring staff back off furlough.
“Surprising aspect of the jobs retention bonus is it’s payable in respect of any employee furloughed at any point even if already back at work,” he said on Twitter.
“You’d think a lot of this spending will be pure deadweight – going to employers who have already/would anyway bring workers back.”
Johnson also questioned the effectiveness of the VAT cut and vouchers to eat out.
He believes the impact of those measures could be hurt by social distancing rules limiting restaurants’ capacity.
1.37pm Diners to receive 50 per cent restaurant discount through August
Sunak has also announced a 50 per cent discount on meals in participating restaurants in August.
The half price meals, from Monday to Wednesday, will see the discount extend to £19 oer head for adults and children as he hopes to encourage people to eat out as the hospitality sector tries to recover.
Torsten Bell, of the left-leaning Resolution Foundation think tank, welcomed the initiative, but said it was “far too small in scale to have the lasting macro impact we need”.
50% off meals Monday to Wednesday (up to max £10/person). Right idea. Far too small in scale to have the lasting macro impact we need — Torsten Bell (@TorstenBell) July 8, 2020
1.33pm Dodds – SMEs ‘could go to the wall’
Shadow chancellor Dodds also criticised Sunak for failing to announce sector-specific support for industries like travel and tourism.
And she took aim at the chancellor for failing to outline any new support for struggling SMEs.
Instead Sunak has, she said, left major decisions on support until the autumn Budget. “This will risk many SMEs going to the wall,” she added.
1.24pm Anneliese Dodds says today needed a ‘back to work Budget’
The shadow chancellor is quick to admonish the government for not having an even more detaild plan through a full Budget.
“Today should have been the day when millions of British people worried about their jobs and their prospects had a load taken off their shoulders,” she said.
“It should have been the day when we got the UK economy firing again.
“Britain should have had a back to work budget, but instead we got this summer statement with many of the big decisions put off until later as the benches opposite know full well.”
1.15pm Stamp duty reaction
Some reaction to the stamp duty holiday – which will remove the tax on properties under £500,000 until 31 March.
Jonathan Hopper, CEO of Garrington Property Finders, said the stamp duty cut shows the housing market is “once again being enlisted to prop up the economy”.
“Chancellors through the ages have used the housing market as a stimulus, and Mr Sunak made clear this radical cut in Stamp Duty has one goal in mind – to boost confidence and get people, and the economy, moving again,” he added.
“Such a big cut in the cost of buying a home will give a welcome shot in the arm to a property market which is still reeling from the impact of the pandemic, and there is huge relief that the changes are effective immediately.”
However, he pointed out that the stimulus is “another demand-side measure” like Help to Buy.
“While the jury is out on how much such schemes boost sales, it’s generally agreed they push up prices,” he warned. “While rising house prices are a great tonic for voters’ confidence, they shouldn’t be an end in themselves.”
1.14pm VAT cut on hospitality and tourism cut from 20 to 5 per cent
VAT will be cut for all hospitality and tourism businesses from 20 per cent to 5 per cent until 12 January.
Sunak says it will be a “£4bn catalyst” that will benefit over 150,000 businesses and consumers and help protect 2.4m jobs.
“We need to give these businesses the confidence to know if they open up…demand will be there and be there quickly,” he said.
1.08pm Stamp duty cut for home buyers until 31 March
Stamp duty will only be paid on houses worth more than £500,000 until 31 March next year.
Sunak says the measure will save an average of £4,500 for each buyer and that nine out of ten people will pay no stamp duty thanks to the temporary change.
The stamp duty threshold is currently £125,000, so today’s announcement marks a substantial increase from this level.
Sunak hopes it will massively boost the housing market at a time when the two major house price indexes respectively found UK house prices have suffered their longest dip since 2010, and their first fall since the financial crisis.
1.06pm Green energy funding confirmed
An already announced £3bn green jobs plan is also confirmed.
The government will spend £2bn to subsidise households to make their homes more energy efficient.
A further £1bn will be spent on “funding for energy efficiency of public sector buildings”, Sunak says.
1.03pm New apprentice and trainee funding
The chancellor has announced a swathe of expected announcements on traineeships and apprenticeships.
Companies will get up to £2,000 to take on apprentices, while companies will receive £1,000 to take on new trainees.
The Department for Work and Pensions will also get another £1bn in funding to deal with increased unemployment.
12.58pm Sunak confirms jobs scheme for young Britons
Sunak goes on to announce the already trailed Kickstart Scheme.
The £2bn scheme will see the government create an estimated 350,000 jobs for young Britons.
It is available for 16-24-year-olds on Universal Credit who will receive 25 hours of pay a week from the government on the National Minimum Wage.
The scheme will last six months and Sunak says there will be no cap on places or funding for the scheme.
Companies involved will receive £1000 for administrative costs.
12.50pm Sunak unveils bonuses for companies that bring back furloughed employees
The government’s economic plan will include an incentive for companies to bring back furloughed employees.
Employers will receive £1,000 per employee they bring back from furlough and keep employed until January.
“It is vital people aren’t returning for the sake of it – they need to be doing decent work,” he said.
“For businesses to get this bonus the employee must be paid 520 pounds on average each month from November to January.
“If employers bring back all 9m people that have been furloughed, this would be a £9bn policy to retain people in work.”
12.46pm Furlough scheme ‘cannot and should not’ go on forever
The chancellor confirms there will be no extension to the government’s wage subsidy scheme beyond October.
“The truth is that calling for endless extensions to the furlough scheme is just as irresponsible as it would have been to end the scheme overnight in June,” he said.
“Leaving the scheme open forever gives people false hope that they will be able to return to the jobs they had before.”
12.41pm ‘No one left without hope’
Sunak takes the despatch box and says that “no one will be left without hope” in the country’s economic recovery plan.
“Our plan has a clear goal – to protect, support and create jobs,” he said.
“We entered this crisis unencumbered by dogma and we continue in this spirit, driven by the simple desire to do what is right.”
12.18pm Prime Minister does not back down from hospital charges
Starmer finishes his questions by asking if the government will U-turn on its decision to re-implement NHS parking charges for frontline workers after the pandemic ends.
He said that after the pandemic the government will “get on” with their manifesto commitment to make parking free for all patients who need it, but no mention of workers.
He also unleashed an attack on Starmer for alleged flip-flopping.
“May I suggest he take his latest bandwagon and parks it free somewhere else,” he said.
“We know how it works – he takes one brief one week, one brief the next.
“He’s consistent only in his opportunism while we get on with our agenda.”
12.08pm Boris Johnson takes responsibility for care home deaths at Prime Minister’s Questions
Before today’s economic statement we have got the weekly duel between Boris Johnson and Sir Keir Starmer at Prime Minister’s Questions.
Starmer opened the proceedings by demanding an apology for the Prime Minister’s comments effectively blaming care homes for the 20,000+ deaths in social care settings from Covid-19.
Johnson refused to apologise, but takes full responsibility for the fallout of coronavirus.
“The last thing I want to do is blame care workers for what has happened or for any of them to think i was blaming them,” he said.
“I take full responsibility for what has happened. The one thing nobody knew early on in this pandemic is that the virus was being passed asymptomatically from person to person as it is.”
11.43pm Labour’s expected response
Shadow chancellor Anneliese Dodds will give Labour’s response to the mini-Budget immediately after Sunak finishes delivering his statement.
Dodds is expected to demand a guarantee that no new taxes are imposed during the coronavirus recovery, despite earlier speculation that Labour would call for wealth taxes.
Dodds is expected to respond to the chancellor’s mini budget by saying that Labour is “not calling for tax rises – we are calling for growth”.
The shadow chancellor is expected demand the Tories’ manifesto promise of a tax triple lock – no rises in income tax, National Insurance or VAT – is fulfilled, despite the government’s ballooning budget deficit.
The comments come as a surprise, after she told the Mirror that those with the “broadest shoulders” should be forced to help pay for the government’s wide ranging spending programmes.
Dodds’ statement marks a break from the party’s 2019 election manifesto, which proposed the UK’s top tax bracket be slashed from a threshold of £150,000 to £80,000.
She is expected to say: “The Tory manifesto committed to no rises in income tax, National Insurance or VAT and therefore it is for them to set out how any additional spending will be paid for.
“It’s the chancellor’s job to make sure the economy bounces back from this crisis so there is money in the coffers to protect the public finances.”
The shadow chancellor is also expected to call for an extension to the government’s furlough scheme to provide targeted support for the most vulnerable industries.
The government’s coronavirus wage subsidy scheme will begin to wind down in September and end in October for all sectors.
Dodds is expected to say: “The money sunk into the Job Retention Scheme must not have merely served to postpone unemployment.
“The scheme must now live up to its name – supporting employment in industries which are viable in the long term.”
Summer Statement: What we know so far about Rishi Sunak’s plan
£2bn package for youth unemployment
Sunak last night announced a massive £2bn unemployment scheme focused on creating hundreds of thousands of jobs for Britain’s young people.
The coronavirus support package will subsidise jobs for 16 to 24-year-olds receiving Universal Credit benefits.
For each job on the scheme, the Treasury will pay 100 per cent of the National Minimum Wage for 25 hours a week. That would see young people earn up to £205 a week, and employers can top that sum up.
The scheme could result in 350,000 jobs for young people, according to the left-wing Resolution Foundation think tank.
Stamp duty cut
Another much-reported announcement is that Sunak may order a temporary stamp duty holiday to bolster the housing market.
Currently buyers pay the tax on any properties worth over £125,000. But Sunak’s reported plans would see the threshold raised to either £300,000 or £500,000, offering a huge incentive to buyers to act now.
Initial reports suggested the stamp duty cut would not take place until October. But the Telegraph reported today that it could take effect immediately.
Rishi Sunak’s £3bn green stimulus
The chancellor is also set to reveal a £3bn green investment package to create jobs and upgrade buildings.
Energy efficiency in schools and hospitals will be the target of £1bn of the cash. The £2bn will be spent on making UK homes more environmentally friendly, something the Treasury hopes will provide work for thousands of construction workers.
Training for young people
Another trailed announcement is a £111m investment to triple traineeships for Britain’s youth. The Institute for Fiscal Studies has warned young people face the worst economic scarring from the crisis, and firms will get a £1,000 bonus for each trainee they take on.
Boris Johnson’s FDR-style ‘New Deal’
Last week the Prime Minister compared his own £5bn infrastructure spending pledge to a Franklin D Roosevelt economic splurge.
While economists were quick to point out that Johnson’s sum was far smaller, industries welcomed his promise that the UK would “build, build, build” its way out of its economic crisis.


cityam--2020-07-08--Booze misses out on VAT cut, but pubs say glass is half-full

Britain ’ s largest pub body has shaken off Rishi Sunak ’ s decision to not cut VAT on alcohol in his economic summer statement and instead largely praised the mini-Budget .
The British Beer and Pub Association ( BPPA ) said the exemption would provide little help for “ those pubs where revenue is more drinks led ” , but that most of its members welcomed the package of measures .
Read more : Hospitality sector welcomes ‘ blaze of sunshine ’ from chancellor ’ s VAT cut The chancellor announced a six-month cut in VAT on hospitality and @ @ @ @ @ @ @ 5 per cent in his statement today .
The hospitality sector will also benefit from government vouchers on Mondays , Tuesdays and Wednesdays that will allow people to get 50 per cent of meals , up to £10 per person , at eat-in establishments .
However , alcohol was exempt from both of these measures aimed at stoking demand within the ailing sector as the UK reopens from lockdown .
BPPA chief executive Emma McClarkin said : “ The positive measures announced today are a welcome first step on what we believe will @ @ @ @ @ @ @ for our sector .
“ Of course , for those pubs that do serve significant amounts of food or offer rooms to stay in , the cut to VAT for these to 5 per cent will be a welcome boost .
“ Whilst the measures announced today will help food led pubs , those who just serve beer may feel they are left wanting.
” City A.M. understands that the Treasury did not include alcohol in the offering as up to 90 per cent of pubs offer food at their venues .
Read @ @ @ @ @ @ @ cut to be extended to struggling sector Sunak said in his speech that the emergency measures for pubs and restaurants across the country would act as a “ £4bn catalyst ” that will benefit over 150,000 businesses and consumers and help protect 2.4m jobs .
He added : “ We need to give these businesses the confidence to know if they open up…demand will be there and be there quickly .
”

Booze misses out on VAT cut, but pubs say glass is half-full
People share a pint inside a Wetherspoon pub in Stratford in east London
Britain’s largest pub body has shaken off Rishi Sunak’s decision to not cut VAT on alcohol in his economic summer statement and instead largely praised the mini-Budget.
The British Beer and Pub Association (BPPA) said the exemption would provide little help for “those pubs where revenue is more drinks led”, but that most of its members welcomed the package of measures.
The chancellor announced a six-month cut in VAT on hospitality and tourism businesses from 20 per cent to 5 per cent in his statement today.
The hospitality sector will also benefit from government vouchers on Mondays, Tuesdays and Wednesdays that will allow people to get 50 per cent of meals, up to £10 per person, at eat-in establishments.
However, alcohol was exempt from both of these measures aimed at stoking demand within the ailing sector as the UK reopens from lockdown.
BPPA chief executive Emma McClarkin said: “The positive measures announced today are a welcome first step on what we believe will be a long road to full recovery for our sector.
“Of course, for those pubs that do serve significant amounts of food or offer rooms to stay in, the cut to VAT for these to 5 per cent will be a welcome boost.
“Whilst the measures announced today will help food led pubs, those who just serve beer may feel they are left wanting.”
City A.M. understands that the Treasury did not include alcohol in the offering as up to 90 per cent of pubs offer food at their venues.
Sunak said in his speech that the emergency measures for pubs and restaurants across the country would act as a “£4bn catalyst” that will benefit over 150,000 businesses and consumers and help protect 2.4m jobs.
He added: “We need to give these businesses the confidence to know if they open up…demand will be there and be there quickly.”


cityam--2020-07-08--Small businesses welcome Rishi Sunak’s ‘jobs first approach’

Small businesses have welcomed Rishi Sunak ’ s plan to prioritise jobs as part of a raft measures to get the economy back on its feet .
Announcing his mini Budget today , the Chancellor pledged to “ protect , support and create ” jobs with a raft of new measures .
Read more : Hospitality sector welcomes ‘ blaze of sunshine ’ from chancellor ’ s VAT cut Among plans to boost consumer spending , the Chancellor has cut VAT from 20 per cent to five per cent for food , accommodation and attraction businesses , as well as @ @ @ @ @ @ @ Federation of Small Businesses ( FSB ) applauded Sunak ’ s “ jobs first approach ” and said it was crucial to make sure “ these positive new measures work for all ” .
Sunak ’ s green investment package , which will create thousands of new jobs , could also prove to be a lifeline for some SMEs .
“ Making small firms a central part of this push will be critical to its success and local growth , ” FSB national chairman Mike Cheery said .
He also welcomed the push @ @ @ @ @ @ @ help under 25s with the first steps in their careers .
An initial £2bn has been made available for the scheme , which will directly pay employers to create jobs .
This was in contrast to the Shadow Chancellor who warned that there was a lack of solutions for SMEs who can not take on additional debt , until the autumn .
She told the Commons : “ This risks many SMEs going to the wall.
” However the industry body did warn that not all small businesses will have been supported by @ @ @ @ @ @ @ the government to spell out how it will help the newly self-employed and company directors who have once again been overlooked this afternoon , ” Cherry said .
Sunak also unveiled a new job retention bonus programme , which will offer a £1,000 payment to businesses for each employee they bring back from furlough .
Businesses have warned that the winding down of the current furlough scheme in October risks mass unemployment , and despite today ’ s announcement questions still remain on its implementation .
Read more : Rishi Sunak ’ s @ @ @ @ @ @ @ afternoon Dodds asked the Chancellor what he will do for “ those firms that lack the cash flow to operate even with that bonus.
” “ The job retention bonus must be easy to access , ” Cherry said .
“ We can ’ t have paperwork holding up this vital support.
” Get the news as it happens by following City A.M. on Twitter .

Small businesses welcome Rishi Sunak’s ‘jobs first approach’
Small businesses have welcomed Rishi Sunak’s plan to prioritise jobs as part of a raft measures to get the economy back on its feet.
Announcing his mini Budget today, the Chancellor pledged to “protect, support and create” jobs with a raft of new measures.
Among plans to boost consumer spending, the Chancellor has cut VAT from 20 per cent to five per cent for food, accommodation and attraction businesses, as well as “eating out” vouchers.
The Federation of Small Businesses (FSB) applauded Sunak’s “jobs first approach” and said it was crucial to make sure “these positive new measures work for all”. Sunak’s green investment package, which will create thousands of new jobs, could also prove to be a lifeline for some SMEs.
“Making small firms a central part of this push will be critical to its success and local growth,” FSB national chairman Mike Cheery said.
He also welcomed the push on apprenticeships through the Kickstart scheme to help under 25s with the first steps in their careers. An initial £2bn has been made available for the scheme, which will directly pay employers to create jobs.
This was in contrast to the Shadow Chancellor who warned that there was a lack of solutions for SMEs who cannot take on additional debt, until the autumn. She told the Commons: “This risks many SMEs going to the wall.”
However the industry body did warn that not all small businesses will have been supported by the new measures. “We need the government to spell out how it will help the newly self-employed and company directors who have once again been overlooked this afternoon,” Cherry said.
Questions linger over new job retention bonus
Sunak also unveiled a new job retention bonus programme, which will offer a £1,000 payment to businesses for each employee they bring back from furlough.
Businesses have warned that the winding down of the current furlough scheme in October risks mass unemployment, and despite today’s announcement questions still remain on its implementation.
This afternoon Dodds asked the Chancellor what he will do for “those firms that lack the cash flow to operate even with that bonus.”
“The job retention bonus must be easy to access,” Cherry said. “We can’t have paperwork holding up this vital support.”
Get the news as it happens by following City A.M. on Twitter.


cityam--2020-07-08--UK job ads hit by lowest demand for labour in May

Demand for labour in Britain hit its lowest point in May , a study by the Office for National Statistics ( ONS ) today concluded .
Analysing data form online jobs portal Adzuna , the ONS said its findings implied that the worst impact of the pandemic on labour demand was experienced in May , while some sectors increased hiring in June .
It found the reopening of more businesses in June contributed to an increase in hiring activity in some sectors , as opposed to in May when only certain businesses brought back their workforces .
Demand for retail @ @ @ @ @ @ @ and May , before picking up modestly in June .
Read more : Retail industry calls for VAT cut to be extended to struggling sector Meanwhile advertisements for healthcare workers stayed strong throughout the pandemic , showing little change , as the NHS brought on more staff to treat patients .
However , the overall index of job vacancies remained well below its pre-coronavirus levels , the ONS reported .
The findings came as the Recruitment and Employment Confederation ( REC ) industry body warned that a “ job crisis ” may be @ @ @ @ @ @ @ showed the collapse in Britain ’ s labour market eased only marginally last month .
Read more : Sunak ’ s mini-Budget : Everything the chancellor announced The data collected by the ONS highlights the challenges facing chancellor Rishi Sunak as he mapped out measures to support workers through the aftermath of the coronavirus pandemic today .
The Treasury boss revealed massive public spending to the tune of £30bn in order to bolster the UK economy , in what people are calling his mini Budget .
Among the announcements was a new stamp @ @ @ @ @ @ @ a £9bn scheme to convince businesses to re-hire furloughed staff .
Sunak pledged to give businesses £1,000 for every employee they bring back from furlough and keep on until January , in a bid to avoid mass redundancies once the furlough scheme ends in October .

UK job ads hit by lowest demand for labour in May
Demand for labour in Britain hit its lowest point in May, a study by the Office for National Statistics (ONS) today concluded.
Analysing data form online jobs portal Adzuna, the ONS said its findings implied that the worst impact of the pandemic on labour demand was experienced in May, while some sectors increased hiring in June.
It found the reopening of more businesses in June contributed to an increase in hiring activity in some sectors, as opposed to in May when only certain businesses brought back their workforces.
Demand for retail and catering jobs had collapsed in April and May, before picking up modestly in June.
Meanwhile advertisements for healthcare workers stayed strong throughout the pandemic, showing little change, as the NHS brought on more staff to treat patients.
However, the overall index of job vacancies remained well below its pre-coronavirus levels, the ONS reported.
The findings came as the Recruitment and Employment Confederation (REC) industry body warned that a “job crisis” may be on its way, as a survey showed the collapse in Britain’s labour market eased only marginally last month.
The data collected by the ONS highlights the challenges facing chancellor Rishi Sunak as he mapped out measures to support workers through the aftermath of the coronavirus pandemic today.
The Treasury boss revealed massive public spending to the tune of £30bn in order to bolster the UK economy, in what people are calling his mini Budget.
Among the announcements was a new stamp duty threshold, effective immediately, and a £9bn scheme to convince businesses to re-hire furloughed staff.
Sunak pledged to give businesses £1,000 for every employee they bring back from furlough and keep on until January, in a bid to avoid mass redundancies once the furlough scheme ends in October.


cityam--2020-07-09--BBC to scrap free TV licence fee for over-75s from August

The BBC is going ahead with plans to axe free TV licences for over-75 year-olds from August , after a two month delay due to the coronavirus pandemic .
More than 3m households will be asked to start paying the £157.50 annual fee from 1 August , the BBC announced today .
Households that receive Pension Credit will still be eligible for the free licence .
Read more : Boots to slash 4,000 jobs and shut 48 shops BBC chairman Sir David Clementi said : “ The decision to commence the new scheme in August has not been easy , @ @ @ @ @ @ @ be Covid-19 safe .
The BBC could not continue delaying the scheme without impacting on programmes and services .
“ Like most organisations the BBC is under severe financial pressure due to the pandemic , yet we have continued to put the public first in all our decisions .
I believe continuing to fund some free TV licences is the fairest decision for the public , as we will be supporting the poorest oldest pensioners without impacting the programmes and services that all audiences love.
” It comes after more than two months @ @ @ @ @ @ @ was pushed back during the lockdown to “ give everybody time to transition to the new decision.
” The BBC was originally due to scrap the free licence on 1 June , and said the delay has cost the broadcaster £35m a month .
It had previously warned that continuing the free licence fee for over-75s would cost the BBC up to £1bn each year , and would lead to “ unprecedented closures ” of services .
MPs had warned the BBC not to press ahead with the plans over fears it would @ @ @ @ @ @ @ the BBC to keep free TV licence fees for all over-75s , saying : “ Auntie , come on , let ’ s be nice to the over 75-year-olds as they ’ re some of your most loyal viewers and listeners.
” Labour ’ s shadow culture minister Christian Matheson said pensioners will be “ forced to choose between eating and watching TV ” .
“ The BBC is cutting jobs and content to pay for the cost of the licence dumped on them by the government .
And pensioners are forced to @ @ @ @ @ @ @ ” said Matheson .
The broadcaster last week announced it will slash 450 jobs from its BBC News England team and will axe its long-running Inside Out show as part of plans to shore up an extra £25m by 2022 .
The BBC said seven of the 20 presenters on 6.30pm regional TV bulletins will be cut , and some local radio shows will be axed .
It comes after Clare Sumner , the BBC ’ s director of policy , told a Department for Digital , Culture , Media & Sport ( @ @ @ @ @ @ @ was a “ tough period ” for the broadcaster , made worse by unforeseen cancellations to its filming schedule during the pandemic .
Read more : BBC appoints Tim Davie as new director general Sumner added that the BBC will be forced to bring back some “ old classics ” such as Eastenders over the summer and output will be “ thinner ” over the next year as filming plans remain on hold .
The publicly-funded broadcaster had already planned to save £800m before the coronavirus struck , but the pandemic has added @ @ @ @ @ @ @ s savings list due to a slump in revenue .
The broadcaster must save £25m of this by 2022 .

BBC to scrap free TV licence fee for over-75s from August
The BBC is going ahead with plans to axe free TV licences for over-75 year-olds from August, after a two month delay due to the coronavirus pandemic.
More than 3m households will be asked to start paying the £157.50 annual fee from 1 August, the BBC announced today. Households that receive Pension Credit will still be eligible for the free licence.
BBC chairman Sir David Clementi said: “The decision to commence the new scheme in August has not been easy, but implementation of the new scheme will be Covid-19 safe. The BBC could not continue delaying the scheme without impacting on programmes and services.
“Like most organisations the BBC is under severe financial pressure due to the pandemic, yet we have continued to put the public first in all our decisions. I believe continuing to fund some free TV licences is the fairest decision for the public, as we will be supporting the poorest oldest pensioners without impacting the programmes and services that all audiences love.”
It comes after more than two months of deliberation over the decision, which was pushed back during the lockdown to “give everybody time to transition to the new decision.” The BBC was originally due to scrap the free licence on 1 June, and said the delay has cost the broadcaster £35m a month.
It had previously warned that continuing the free licence fee for over-75s would cost the BBC up to £1bn each year, and would lead to “unprecedented closures” of services.
MPs had warned the BBC not to press ahead with the plans over fears it would alienate older audiences.
Jacob Rees-Mogg urged the BBC to keep free TV licence fees for all over-75s, saying: “Auntie, come on, let’s be nice to the over 75-year-olds as they’re some of your most loyal viewers and listeners.”
Labour’s shadow culture minister Christian Matheson said pensioners will be “forced to choose between eating and watching TV”.
“The BBC is cutting jobs and content to pay for the cost of the licence dumped on them by the government. And pensioners are forced to choose between eating and watching TV,” said Matheson.
The broadcaster last week announced it will slash 450 jobs from its BBC News England team and will axe its long-running Inside Out show as part of plans to shore up an extra £25m by 2022.
The BBC said seven of the 20 presenters on 6.30pm regional TV bulletins will be cut, and some local radio shows will be axed.
It comes after Clare Sumner, the BBC’s director of policy, told a Department for Digital, Culture, Media & Sport (DCMS) committee last month that it was a “tough period” for the broadcaster, made worse by unforeseen cancellations to its filming schedule during the pandemic.
Sumner added that the BBC will be forced to bring back some “old classics” such as Eastenders over the summer and output will be “thinner” over the next year as filming plans remain on hold.
The publicly-funded broadcaster had already planned to save £800m before the coronavirus struck, but the pandemic has added a further £125m to the BBC’s savings list due to a slump in revenue. The broadcaster must save £25m of this by 2022.


cityam--2020-07-09--Boris Johnson must resist the urge to build, build, build back the same

My ( increasingly bushy ) eyebrows raised somewhat last week when Boris Johnson stood in front of his podium with his latest three worder “ build , build , build ” and his promise to cut red tape around infrastructure – and raised even further when the chancellor promised to cut stamp duty during his economic statement delivered yesterday .
It is clear that property and infrastructure are a key focus for the government currently when it comes to Covid-19 recovery .
Was this the progressive , forward-thinking “ liberal Boris ” we have heard so much about coming to @ @ @ @ @ @ @ His insistence that “ the newt-counting delays in our system are a massive drag on the productivity and prosperity of this country ” are typical of what we have come to expect of the Prime Minister , and could well end up serving nobody other than the more unscrupulous developers and investors .
Read more : DEBATE : Is Rishi Sunak ’ s stamp duty holiday the right move ?
Boris Johnson ’ s enthusiasm to cut through red tape to speed up the process is dangerous and should concern us all .
@ @ @ @ @ @ @ to short-term profits , rather than a sustainable solution to the housing shortage .
Now is not the time to rush headlong into ill-conceived visions of buildings , amenities and networks springing up across the nation like knotweed , replicating and multiplying what we already had pre-Covid .
First must come a considered planning phase , designing the future we need together .
When it comes to urban infrastructure , there are no easy answers to guide this recovery journey .
However , the answer isn ’ t to create a planning free-for-all @ @ @ @ @ @ @ developments and makes a few landowners rich .
It is easy to see why the “ build , build , build ” policy might at first appear attractive , especially to young people .
I am thinking of those who have had the joy of a lockdown played out in cramped shared accommodation with no space at all outside — some of whom have had enough of inner city living and are prepared to commute from the outskirts if it means they have decent space to live in and access to outside space @ @ @ @ @ @ @ that we attract young talent to our financially thriving cities and then put them in rabbit hutches ?
These thoughts take me back to my days at the Commission for Architecture and the Built Environment , when in 1999 Richard Rogers ’ “ Towards and Urban Renaissance ” became the planning mantra .
This was a common sense and sustainable approach to ensuring that our cities and transport nodes were densified to make best use of resources and ensure that shops and services benefited from this density .
However , for many developers @ @ @ @ @ @ @ cram cram ” people in , maximising returns .
The planning system had too little clout and often lacked the skills to prevent the laudable aims of Towards an Urban Renaissance from being delivered .
Instead , it often ended up with tiny newbuild apartments without outdoor space .
Now there is a risk of the same thing happening again , adding more tiny living spaces to the overly subdivided older properties that Covid-19 has proved are totally unsuitable for the wellbeing of so many ( especially the wealth-generating young ) .
We @ @ @ @ @ @ @ lessons forward from the coronavirus pandemic as a society .
We have to learn from the reduction in respiratory-related ( Covid-19 excepting ) illnesses resulting from decreased air pollution levels during lockdown .
We have to learn that for many the only solace of the past few months has been to venture outside , walk , run , cycle , enjoy the sound of birdsong and to watch springs and summer unfold in real time .
We surely have a duty to respond to the wellbeing issues that have been loudly trumpeted , @ @ @ @ @ @ @ of access to green spaces .
Intelligent and carefully thought-out infrastructure solutions are needed that don ’ t pander to the Nimbys but instead listen to environmentalists .
Yes we need to act fast , but simply slashing red tape and allowing a culture of building purely to get people working is short-sighted short-termism bundled up with long-term self-harm .
Do we densify the suburbs and create 15 minute neighbourhoods ?
Do we build garden cities and do it properly ?
Could we rezone our towns and cities and create green spaces where @ @ @ @ @ @ @ are radical and not so radical solutions out there , This is not the time to build back the same .
Rather , now is the time for developers , planners , environmentalists , pressure groups and young diverse voices to come together and plan , plan , plan .
Read more : We can ’ t rebuild an economy on half-priced meals — we need a productivity revolution

Boris Johnson must resist the urge to build, build, build back the same
My (increasingly bushy) eyebrows raised somewhat last week when Boris Johnson stood in front of his podium with his latest three worder “build, build, build” and his promise to cut red tape around infrastructure – and raised even further when the chancellor promised to cut stamp duty during his economic statement delivered yesterday.
It is clear that property and infrastructure are a key focus for the government currently when it comes to Covid-19 recovery.
Was this the progressive, forward-thinking “liberal Boris” we have heard so much about coming to the fore? I think not. His insistence that “the newt-counting delays in our system are a massive drag on the productivity and prosperity of this country” are typical of what we have come to expect of the Prime Minister, and could well end up serving nobody other than the more unscrupulous developers and investors.
Boris Johnson’s enthusiasm to cut through red tape to speed up the process is dangerous and should concern us all. It is simply a byword for short-cuts to short-term profits, rather than a sustainable solution to the housing shortage.
Now is not the time to rush headlong into ill-conceived visions of buildings, amenities and networks springing up across the nation like knotweed, replicating and multiplying what we already had pre-Covid. First must come a considered planning phase, designing the future we need together.
When it comes to urban infrastructure, there are no easy answers to guide this recovery journey. However, the answer isn’t to create a planning free-for-all that creates yet more semi-isolated, car-dependent developments and makes a few landowners rich.
It is easy to see why the “build, build, build” policy might at first appear attractive, especially to young people. I am thinking of those who have had the joy of a lockdown played out in cramped shared accommodation with no space at all outside — some of whom have had enough of inner city living and are prepared to commute from the outskirts if it means they have decent space to live in and access to outside space. Doesn’t it seem wrong that we attract young talent to our financially thriving cities and then put them in rabbit hutches?
These thoughts take me back to my days at the Commission for Architecture and the Built Environment, when in 1999 Richard Rogers’ “Towards and Urban Renaissance” became the planning mantra.
This was a common sense and sustainable approach to ensuring that our cities and transport nodes were densified to make best use of resources and ensure that shops and services benefited from this density.
However, for many developers it became an opportunity to “cram cram cram ” people in, maximising returns. The planning system had too little clout and often lacked the skills to prevent the laudable aims of Towards an Urban Renaissance from being delivered. Instead, it often ended up with tiny newbuild apartments without outdoor space.
Now there is a risk of the same thing happening again, adding more tiny living spaces to the overly subdivided older properties that Covid-19 has proved are totally unsuitable for the wellbeing of so many (especially the wealth-generating young).
We need to ensure we take the right lessons forward from the coronavirus pandemic as a society. We have to learn from the reduction in respiratory-related (Covid-19 excepting) illnesses resulting from decreased air pollution levels during lockdown. We have to learn that for many the only solace of the past few months has been to venture outside, walk, run, cycle, enjoy the sound of birdsong and to watch springs and summer unfold in real time.
We surely have a duty to respond to the wellbeing issues that have been loudly trumpeted, resulting from cramped conditions and a lack of access to green spaces.
Intelligent and carefully thought-out infrastructure solutions are needed that don’t pander to the Nimbys but instead listen to environmentalists. Yes we need to act fast, but simply slashing red tape and allowing a culture of building purely to get people working is short-sighted short-termism bundled up with long-term self-harm .
Do we densify the suburbs and create 15 minute neighbourhoods? Do we build garden cities and do it properly? Could we rezone our towns and cities and create green spaces where there were once retail parks? There are radical and not so radical solutions out there,
This is not the time to build back the same. Rather, now is the time for developers, planners, environmentalists, pressure groups and young diverse voices to come together and plan, plan, plan.
Main image credit: Getty


cityam--2020-07-09--Think tank: Furlough bonus scheme a £9bn 'deadweight loss'

Rishi Sunak ’ s £9.4bn scheme to compensate companies that bring back furloughed employees has been described as a “ deadweight loss ” by a leading London think tank .
The chancellor ’ s Job Retention Bonus will see the government pay businesses £1,000 for every furloughed employee they bring back to work and keep employed until the end of January .
Read more : Rishi Sunak Summer Statement : All the Chancellor ’ s spending pledges The government is paying 9.4m workers through the furlough scheme , which is due to finish at the end of October , meaning @ @ @ @ @ @ @ up to £9.4bn .
The Resolution Foundation , a left-leaning think tank , has questioned the usefulness of the scheme , citing a recent employment survey that shows 1m furloughed employees were already in line for redundancies once the furlough scheme ends .
The think tank said the bonus £1,000 per employee would likely not be enough to stop many of these jobs going , while many companies who had no intention of laying off employees will still get the bonus .
A statement from the Resolution Foundation called the scheme a “ @ @ @ @ @ @ @ cost may be too small and temporary to prevent high unemployment as the job retention scheme is phased out , while costing a lot ” .
Before the Open newsletter : Start your day with the City View podcast and key market data Labour shadow chancellor Anneliese Dodds also called the bonus scheme “ peculiar ” this morning and called for a more targeted approach .
Speaking to BBC Radio 4 , she said : “ I do find it a little peculiar that we now have this bonus that will be paid @ @ @ @ @ @ @ business are back operating up to full capacity or not .
“ We really need to have targeted support , this is a crisis like no other where the impact is very strongly sectoral , we should have had a more sectoral approach from the Chancellor.
” The government ’ s furlough scheme has won wide praise for stopping mass unemployment and ensuring people still receive wages during the coronavirus crisis .
Workers on the scheme receive 80 per cent of their monthly pay , up to £2,500 a month , while they @ @ @ @ @ @ @ is now being wound down and will end in October , despite calls from Dodds for it to be extended .
Sunak said in his statement yesterday that the scheme “ can not and should not go on forever ” .
Read more : Pace of furloughing slows as cost of job support measures tops £33bn “ The truth is that calling for endless extensions to the furlough scheme is just as irresponsible as it would have been to end the scheme overnight in June , ” he said .
“ Leaving the @ @ @ @ @ @ @ that they will be able to return to the jobs they had before .
”

Think tank: Furlough bonus scheme a £9bn ‘deadweight loss’
Rishi Sunak said in his statement yesterday that the furlough scheme “cannot and should not go on forever”.
Rishi Sunak’s £9.4bn scheme to compensate companies that bring back furloughed employees has been described as a “deadweight loss” by a leading London think tank.
The chancellor’s Job Retention Bonus will see the government pay businesses £1,000 for every furloughed employee they bring back to work and keep employed until the end of January.
The government is paying 9.4m workers through the furlough scheme, which is due to finish at the end of October, meaning the bonus’ could cost the Treasury up to £9.4bn.
The Resolution Foundation, a left-leaning think tank, has questioned the usefulness of the scheme, citing a recent employment survey that shows 1m furloughed employees were already in line for redundancies once the furlough scheme ends.
The think tank said the bonus £1,000 per employee would likely not be enough to stop many of these jobs going, while many companies who had no intention of laying off employees will still get the bonus.
A statement from the Resolution Foundation called the scheme a “deadweight loss” and that the “cost may be too small and temporary to prevent high unemployment as the job retention scheme is phased out, while costing a lot”.
Before the Open newsletter: Start your day with the City View podcast and key market data
Labour shadow chancellor Anneliese Dodds also called the bonus scheme “peculiar” this morning and called for a more targeted approach.
Speaking to BBC Radio 4, she said: “I do find it a little peculiar that we now have this bonus that will be paid to all employers regardless of whether their business are back operating up to full capacity or not.
“We really need to have targeted support, this is a crisis like no other where the impact is very strongly sectoral, we should have had a more sectoral approach from the Chancellor.”
The government’s furlough scheme has won wide praise for stopping mass unemployment and ensuring people still receive wages during the coronavirus crisis.
Workers on the scheme receive 80 per cent of their monthly pay, up to £2,500 a month, while they are unable to work.
The scheme is now being wound down and will end in October, despite calls from Dodds for it to be extended.
Sunak said in his statement yesterday that the scheme “cannot and should not go on forever”.
“The truth is that calling for endless extensions to the furlough scheme is just as irresponsible as it would have been to end the scheme overnight in June,” he said.
“Leaving the scheme open forever gives people false hope that they will be able to return to the jobs they had before.”