Ban on redundancies, new furlough and VAT cut – Rishi's announcement

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Ban on redundancies, new furlough and VAT cut - Rishi's  announcement

Corporations will not be able to issue layoffs to employees while participating in a new employment promotion program, and the return of capital to shareholders will be restricted.

The new measure is part of a package that Chancellor of the Exchequer Rishi Sunak announced in his winter economic plan this afternoon.

The support is set to get the UK economy through the next six months of the coronavirus and the restrictions of supporting jobs and businesses.

Mr. Sunak told Commons, “There will be restrictions on larger companies on the return of capital to shareholders while they receive money for their employees under this program.

“Indeed, they will not be able to lay off workers who have been in this system for their entire duration.”

When asked what he would say to those who would lose their jobs due to coronavirus cuts, the prime minister said: “The Chancellor is completely realistic with people about the prospects for the economy.

“It is going to be difficult. What we say to people who do the right thing – those who self-isolate if contacted by NHS Test and Trace will get support – there is £ 500 to support them.

“But there may also be a £ 10,000 fine if you don’t stick to it, and it’s absolutely vital that we all work together now to bring the R down, get the virus back under control, while continuing education and business .

“This is the best thing for jobs and growth in this country.”

Mr Sunak told MPs in the House of Commons, “Earlier this week the Prime Minister set out the next phase of the government’s health response to the coronavirus. Today I want to outline the next phase of our planned economic response.

“The House will be reassured to know that I’ve developed plans to protect jobs and the economy over the winter.

“Plans that aim to strike the right balance between fighting the virus and protecting the jobs and livelihoods of millions of people.”

Rishi Sunak said he shared public concern about the ongoing effects of the coronavirus pandemic.

“I know that people are scared and anxious and exhausted about the prospect of further restrictions on our economic and social freedoms. I share these feelings, but there are reasons to be cautiously optimistic, ”he said.

Mr. Sunak added that the government has now allocated “over £ 12 billion for Test and Trace”.

“Economically, we have grown for three months in a row, our production is below February, and millions of people have returned to work from vacation.”

Mr. Sunak said the main goal remains to “support people’s jobs”.

He added: “Our job now is to move on to the next stage of our economic plan and encourage recovery by protecting jobs during the difficult winter months.

“The underlying reasons for the next phase of economic support must be different from the previous ones.

“The main objective of our economic policy remains unchanged – to support people’s jobs – but the way we do this needs to evolve.”

Mr. Sunak said it was “fundamentally wrong” to keep people in jobs that exist only within the vacation program.

He told Commons, “Our economy is likely to see a more permanent adjustment now. The sources of our economic growth and the types of jobs we create will adapt to the new normal and evolve.

“And our plan has to adapt and develop accordingly. Most of all, we have to face the tradeoffs and tough choices made by the coronavirus, and there has been no more difficult decision than ending the vacation program.

“Vacation was the right policy at the time we introduced it. It provided immediate, short-term protection for millions of jobs in a time of acute crisis.

“But when the economy opens up again, it is fundamentally wrong to keep people in jobs that only exist during vacation.”

Mr. Sunak said the new job support program would enable companies to keep employees in place for shorter hours.

“I am announcing the new Jobs Support Program today,” Sunak told Commons.

“The government will directly support workers’ wages and allow companies under pressure to keep employees in shorter hours instead of laying them off. “

Mr. Sunak said the new job support program would enable companies to keep employees in place for shorter hours.

“I am announcing the new Jobs Support Program today,” Sunak told Commons.

“The government will directly support workers’ wages and allow companies under pressure to keep employees in shorter hours instead of laying them off. “

Mr. Sunak said the government would support the self-employed in a similar way.

He told Commons, “I am expanding the existing self-employed scholarship on terms similar to the new job support program.”

Mr Sunak said bounce-back loans gave more than a million small businesses a £ 38 billion survival boost. A “pay as you grow” program would be introduced to give these companies more time to repay their loans.

He told Commons, “This means that loans can now be extended from six to ten years, which cuts the average monthly repayment almost in half.

“Troubled companies can only make interest payments now, and anyone in real trouble can request that repayments be suspended for up to six months altogether.

“No company that receives any compensation as it grows will affect its creditworthiness.”

Mr. Sunak announced that the temporary reduction in VAT rates from 20% to 5% will remain in place through March 31, 2021.

He said: “The final step I am taking today will support two of the worst hit sectors, hospitality and tourism.

“Under current plans, the VAT rate will increase from 5% to the standard rate of 20% on January 13th.

“To support more than 150,000 businesses and protect 2.4 million jobs over the winter, I announce today that we will be canceling the planned increase and maintaining the lower 5% VAT rate through March 31 of next year.”

Sunak says more than 60,000 small and medium-sized businesses have taken out coronavirus business interruption loans and the government guarantee on those loans would be extended for up to 10 years.

He said he would extend the deadline for all government loan programs until the end of the year, adding, “We are starting work on a new follow-up loan guarantee program due to begin in January.”

The Chancellor said nearly 500,000 companies deferred more than £ 30 billion in VAT this year, stating that companies are allowed to split that bill into 11 “smaller repayments with no interest payable”.

Mr Sunak said it is everyone’s responsibility to defeat the coronavirus as “the cost is shared by everyone”.

He told Commons, “Today’s actions mark an important evolution in our approach. Our lives can no longer be put on hold. Since May we have taken steps to liberate our economy and society.

“We did these things because life is more than just existing. We find meaning and hope through our friends and family, through our work and our community.

“The people were not wrong to want this meaning, to strike towards normalcy, and the government was not wrong to want this for them either.

Mr. Sunak added, “The truth is, responsibility for fighting the coronavirus cannot be borne by the government alone. It is a collective responsibility shared by everyone because the cost is shared by everyone. “

Sunak said people need to learn to live with coronavirus and “live without fear”.

The Chancellor said: “We have spoken so many times about this virus in terms of lost lives, but the price our country is paying is higher.”

He added, “And when we think about the next few weeks and months, we have to consider all of these costs.

“So it would be dishonest to say that there is now a risk-free solution or that we can dictate behavior to the point where we lose all sense of personal responsibility.

“What was true at the beginning of this crisis remains true now – it is up to all of us and we must learn to live with it and live without fear.”

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