What lockdown lifting means for furlough, businesses and benefits

Prime Minister Boris Johnson has set out what the UK lockdown will mean for vacation, business support and benefits.

Mr Johnson spoke in Parliament when he announced the four-step plan to get England out of lockdown between March and June.

Mr Johnson said the details of the continued assistance will be revealed next week by the Chancellor of the Exchequer, Rishi Sunak.

He said: “People may be concerned about what these changes mean for the various support packages, for people’s livelihoods and for the economy.

“So I want to assure the house that we’re not going to pull the carpet out.

“During the duration of the pandemic, the government will continue to do everything possible to protect jobs and livelihoods across the UK.

“And my Rt Hon friend, the Chancellor, will provide more details on the budget next Wednesday. Finally, Mr. Spokesman, we have to watch out for the constant mutations of the virus.”

Mr. Sunak is under pressure to extend measures such as the vacation program, which expires in late April when he presents his budget on March 3rd.

Tony Danker, Director General of the Confederation of British Industries said: “We need to turn this roadmap into real economic momentum now.

“The budget is the second half of this announcement. Expanding business support in parallel with restrictions will create a bridge for businesses to the other side.”

Union leader Sir Keir Starmer said the prime minister should listen to his scientific advisers, not Tory lockdown skeptics, when deciding what to do next.

“If he doesn’t, we will all be wasting 12 months of sacrifice,” he warned.

Rishi Sunak will disclose whether he plans to raise taxes and confirm the future of coronavirus support programs like vacation The mirror.

The budget also provides tariffs on fuel, cigarettes and alcohol, as well as the minimum wage.

This year’s budget will take place on Wednesday March 3rd.

The chancellor has reportedly told Tory MPs he is considering tax increases.

Tax increases

Mr Sunak is reportedly considering changes to income tax breaks – which would mean each family contributing an additional £ 12.50 in taxes and wealthier taxpayers £ 62.50.

It has also been speculated that capital gains tax could be increased to 45% from its current 20%.

The Ministry of Finance is said to have thought about the abolition of the municipal tax and the stamp tax and replaced them with a property tax.

A proportional property tax could be levied on the existing values ​​of homes rather than the 1990s valuations on which the council tax is based, according to the Sunday Times.

Stamp duty was frozen on properties under £ 500,000 during the pandemic – but this is set to end on March 31.

Vacation and other support programs

The Coronavirus Jobs Retention Scheme (CJRS) – known as Vacation – has been extended three times since Mr Sunak announced it last year.

It is currently expected to be completed in late April, but it is likely that Mr Sunak will extend it again due to the recent lockdown.

Mr Sunak will likely want to extend the vacation program until the economy really opens up again – or risk mass job losses.

The IPPR think tank recently warned that up to 9 million jobs could be at stake without an expansion of corporate support, including vacations, loan guarantees and vacation installments.

There may also be more details on self-employed support.

Mr. Sunak could announce a fourth round of the self-employed income support scheme, which provides grants to freelancers and people who run their own businesses.

Universal credit increase

Mr Sunak has been under pressure to keep the universal loan temporarily increased by £ 20 per week.

The annual surcharge of £ 1,040 was introduced to help people during the pandemic. It expires in April.

The Chancellor is said to be reluctant to extend the lift, creating a back-and-forth between the Ministry of Labor and Pensions and the Ministry of Finance.

It has been speculated that he will postpone the expiration date by six months instead of making it permanent.

He is also said to be considering a one-time grant of £ 1,000 to help families set up to replace the upswing.

But labor and pensions minister Therese Coffey recently poured cold water on the idea and told MPs it wasn’t the best way to help families.

Cigarettes and alcohol

The budget often includes plans to put a cent or two more on cigarettes and alcohol.

Final prices will be confirmed on the day and will normally apply from that evening.

But Mr Sunak might decide to freeze tariffs on beer to get a good headline in the dark.

Fuel tax

The Chancellor reportedly warned MPs that he would have to raise fuel tax by 5p per liter to pay for the universal credit increase.

The levy has been frozen at around 58p for a decade – saving the average motorist a total of a cumulative £ 1,200.


Leave a Comment