In his latest economic statement, UK Chancellor Rishi Sunak outlined a comprehensive plan to support the country’s economic recovery following the impact of the Covid-19 pandemic. The plan includes a range of measures aimed at boosting economic growth, creating jobs, and supporting businesses across various sectors.
One key aspect of Rishi Sunak’s economic plan is the extension of the furlough scheme until the end of September 2021. This scheme, introduced at the onset of the pandemic, provides financial support to workers who are unable to work due to the ongoing health crisis. By extending the scheme, the Chancellor aims to continue protecting jobs and supporting businesses as they navigate the challenges posed by the pandemic.
Another important component of the economic plan is the introduction of a new “Restart Grant” scheme. This initiative aims to provide financial assistance to businesses as they reopen following the easing of lockdown restrictions. Eligible businesses can apply for grants of up to £18,000 to help cover the costs of reopening and rehiring staff, supporting them in their efforts to recover from the economic impact of the pandemic.
In addition to these measures, Rishi Sunak’s plan includes support for the hospitality and tourism sectors, which have been particularly hard hit by the pandemic. The Chancellor announced an extension of the reduced VAT rate of 5% for hospitality, accommodation, and attractions until the end of September 2021. This measure is intended to help these sectors recover and rebuild as restrictions are gradually lifted.
Furthermore, Rishi Sunak announced the launch of a new mortgage guarantee scheme aimed at helping first-time buyers secure mortgages with a 5% deposit. This initiative is part of the government’s efforts to support the housing market and make homeownership more accessible to young people looking to buy their first home.
The economic plan also includes investments in green technologies and infrastructure to support the UK’s transition to a greener economy. The Chancellor announced the creation of a new UK Infrastructure Bank, which will provide financial support for infrastructure projects that contribute to the country’s net-zero emissions target.
Overall, Rishi Sunak’s economic plan reflects the government’s commitment to supporting the UK economy as it emerges from the challenges of the Covid-19 pandemic. By implementing a range of measures to protect jobs, support businesses, and stimulate economic growth, the Chancellor aims to lay the foundation for a strong and sustainable recovery in the months and years ahead.
