Chancellor of the Exchequer Rishi Sunak set out the government’s new support scheme to save millions of jobs and businesses from a winter crisis on Thursday, as escalating Covid-19 cases placed the UK economy under further pressure.
I cannot save every business, I cannot save every job. No chancellor could.
Britain’s finance minister’s rescue plan included a series of new measures to bolster the economy including plans to subsidise staff wages, extended loans for businesses hit by coronavirus restrictions and more help with VAT payments.
Mr Sunak warned he could not save every job or every business and urged the country to brace itself for at least six months of hardship. The economy will therefore undergo a “more permanent adjustment,” he said.
“I cannot save every business, I cannot save every job. No chancellor could,” Mr Sunak said. “But what we can and must do is deal with the real problems businesses and employees are facing now.”
Mr Sunak acknowledged that Britons were “anxious” about further restrictions on their economic and social freedeoms and said the furlough scheme was the right policy at the right time and that there was no “harder” choice than the decision to end it.
"The Chancellor is being totally realistic about the economy," prime minister Boris Johnson said shortly after Mr Sunak's speech.
The UK has been forced to return to emergency measures amid escalating numbers of coronavirus cases and a surge in unemployment, with the new plan replacing the government’s furlough scheme, which paid 80 per cent of the wages of any employees placed on leave, is set to expire on October 31.
In total, 32 per cent of eligible jobs were furloughed through the government’s Coronavirus Job Retention Scheme for at least part of the period between March and June 2020, according to data from the Office for National Statistics on Thursday, with young people the most affected.
Mr Sunak said the government has delivered £190 million in economic support for people and businesses but that it was time to move into the “next phase” and roll out measures that deal with “the new normal”.
Under new restrictive measures unveiled by Mr Johnson earlier this week, pubs and restaurants must shut by 10pm and office workers have been encouraged to work from home.
The government’s new economic measures will see employers pay a third of the wages of staff in "viable jobs" who are forced to work lower hours due to reduced demand. For the hours not worked, the government and the employer will each pay one-third of their equivalent salary. The scheme will run for six months from November 1.
Meanwhile, business loans such as the 'bounce back' and 'coronavirus business interruption' support, will be extended until November 30.
A new 'Pay as You Grow' system allows businesses to repay their loans over a period of up to 10 years or switch to interest-only repayments for six months. To date, more than 1 million businesses have taken out a bounce back loan, with an average loan size of £30,000, HM Treasury said.
Mr Sunak will also extend a cut to value-added tax for hotels, cafes and restaurants until March 31 to support the hospitality and tourism sectors which are struggling with demand.
“The chancellor has listened to our consistent calls for an extension of business lending schemes, more flexible repayment terms for loans, and tax forbearance measures," said Adam Marshall, director general at the British Chambers of Commerce. "With almost 40 per cent of our firms saying they have three months cash in reserve or less, this will lessen the immediate pressure and provide reassurance for many affected firms at a challenging time."
Analysts said the Chancellor's policy measures will go some way to cushioning the blow to the economic recovery from the new restrictions to contain Covid-19 and limiting the long-term hit to unemployment.
"But these actions won’t eliminate the hit entirely. That is why we think gross domestic product will stagnate in the last three months of the year and take until end-2022 to return to its pre-crisis level," said Capital Economics in a research note.
Supplying extra state funds now to cover wages and company loans will put further pressure on the government’s finances.
Struggling businesses were only just getting back on their feet after the UK's first national lockdown saw the country slip into its first recession since 2009 in the second quarter of this year, posting a record 20.2 per cent contraction in the gross domestic product. In comparison, the largest quarterly decline during the 2008 recession was 2.1 per cent. The UK economy was "disproportionally hurt", according to analysts with GDP in the eurozone falling by a record 12.1 per cent over the same period.
Britain's unemployment rate jumped above 4 per cent in the second quarter of the year as the effects of the Covid-19 pandemic took hold, according to the Office for National Statistics – the first increase since the coronavirus lockdown began in March.
Earlier in the week Whitbred, which owns Premier Inn and Beefeater and still has 27,000 staff paid by the furlough, warned that 6,000 staff could lose their jobs. Pub chain JD Wetherspoon said half its 1,000 staff that work at airport venues were at risk. Meanwhile, cinema chain Cineworld said on Thursday it had swung to a £1.6 billion loss for the six months to June as movie theatres were closed during the lockdown.
About Krews
Founder: Ahmed Al Qubaisi
Based: Abu Dhabi
Founded: January 2019
Number of employees: 10
Sector: Technology/Social media
Funding to date: Estimated $300,000 from Hub71 in-kind support
Fitness problems in men's tennis
Andy Murray - hip
Novak Djokovic - elbow
Roger Federer - back
Stan Wawrinka - knee
Kei Nishikori - wrist
Marin Cilic - adductor
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Global state-owned investor ranking by size
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UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
if you go
The flights
Flydubai offers three daily direct flights to Sarajevo and, from June, a daily flight from Thessaloniki from Dubai. A return flight costs from Dhs1,905 including taxes.
The trip
The Travel Scientists are the organisers of the Balkan Ride and several other rallies around the world. The 2018 running of this particular adventure will take place from August 3-11, once again starting in Sarajevo and ending a week later in Thessaloniki. If you’re driving your own vehicle, then entry start from €880 (Dhs 3,900) per person including all accommodation along the route. Contact the Travel Scientists if you wish to hire one of their vehicles.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
CRICKET%20WORLD%20CUP%20QUALIFIER%2C%20ZIMBABWE%20
%3Cp%3E%3Cstrong%3EUAE%20fixtures%20%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMonday%2C%20June%2019%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ESri%20Lanka%20v%20UAE%2C%20Queen%E2%80%99s%20Sports%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWednesday%2C%20June%2021%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EOman%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFriday%2C%20June%2023%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EScotland%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETuesday%2C%20June%2027%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EIreland%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%3C%2Fp%3E%0A
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
The biog
Fast facts on Neil Armstrong’s personal life:
- Armstrong was born on August 5, 1930, in Wapakoneta, Ohio
- He earned his private pilot’s license when he was 16 – he could fly before he could drive
- There was tragedy in his married life: Neil and Janet Armstrong’s daughter Karen died at the age of two in 1962 after suffering a brain tumour. She was the couple’s only daughter. Their two sons, Rick and Mark, consulted on the film
- After Armstrong departed Nasa, he bought a farm in the town of Lebanon, Ohio, in 1971 – its airstrip allowed him to tap back into his love of flying
- In 1994, Janet divorced Neil after 38 years of marriage. Two years earlier, Neil met Carol Knight, who became his second wife in 1994
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
UNpaid bills:
Countries with largest unpaid bill for UN budget in 2019
USA – $1.055 billion
Brazil – $143 million
Argentina – $52 million
Mexico – $36 million
Iran – $27 million
Israel – $18 million
Venezuela – $17 million
Korea – $10 million
Countries with largest unpaid bill for UN peacekeeping operations in 2019
USA – $2.38 billion
Brazil – $287 million
Spain – $110 million
France – $103 million
Ukraine – $100 million
Tour de France
When: July 7-29
UAE Team Emirates:
Dan Martin, Alexander Kristoff, Darwin Atapuma, Marco Marcato, Kristijan Durasek, Oliviero Troia, Roberto Ferrari and Rory Sutherland
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
The specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
