The UK’s finance minister, Rishi Sunak, is set to spend billions of pounds more in state support for the economy over the next four months, as an extended lockdown threatens businesses’ survival.
The chancellor of the exchequer will set out the details in his March 3 budget after Prime Minister Boris Johnson outlined a timeline for reopening the UK economy, which keeps some companies closed until at least June 21.
Mr Johnson’s four-step road map for lifting the lockdown will influence how fast Treasury subsidies are withdrawn, sources say.
Key aid programmes are due to end as early as next month but Mr Sunak will extend assistance so that companies and people do not face a cliff-edge while restrictions are still in place, the sources said.
“People may be concerned about what these changes mean for the various support packages for livelihoods, for people and for the economy,” Mr Johnson told Parliament on Monday.
“We will not pull the rug out. For the duration of the pandemic, the government will continue to do whatever it takes to protect jobs and livelihoods across the UK.”
Mr Sunak faces a daunting task to put the economy on a path to recovery after suffering its deepest slump in three centuries last year.
The budget deficit is already setting peacetime records after he committed to spending £300 billion ($422bn) to help the health service and businesses cope with the crisis, a sum that is set to increase next week.
Continuation of support will broadly track the exit strategy, while taking into account the fact that business will not immediately return to normal levels even when shops and pubs are allowed to reopen, the sources said.
That suggests assistance will last beyond the date of June 21 set by Mr Johnson to reopen the last sectors of the economy.
The premier’s road map means businesses such as nightclubs will be shut until at least June 21, while theatres, concert halls and sporting venues will have limits on the crowds they can admit until then, making many of them unprofitable.
Pubs and restaurants will not be able to reopen until at least April 12, and then only for outdoor service.
By the time indoor service is allowed in mid-May, many businesses will have been closed for nearly 200 days “with just a couple of weeks of heavily restricted trading in December", said UKHospitality chief executive Kate Nicholls.
“A major package of financial support is imperative,” Ms Nicholls said. “This delay in reopening will make the job of survival all the more difficult for businesses only just clinging on to existence.”
Government support policies due to expire by the end of April include Mr Sunak’s programme that pays furloughed workers up to 80 per cent of their wages, a business rates holiday and lower sales tax for hospitality and tourism.
He faces calls to extend all of them, from business groups and politicians, including two predecessors in his Conservative party.
“The chancellor must deliver on the prime minister’s 'whatever it takes’ pledge,” said Mike Cherry, Federation of Small Businesses national chairman.
“On one side of the coin we have continued restrictions; on the other, we need corresponding business support.”
Conservative Party members also called for the economy to be reopened more quickly, especially when the 32 million people most vulnerable to Covid-19 are due to have been vaccinated by mid-April.
Isle of Dogs
Director: Wes Anderson
Starring: Bryan Cranston, Liev Schreiber, Ed Norton, Greta Gerwig, Bill Murray, Jeff Goldblum, Scarlett Johansson
Three stars
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
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Need to know
When: October 17 until November 10
Cost: Entry is free but some events require prior registration
Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center
What: The Korea Festival will feature art exhibitions, a B-boy dance show, a mini K-pop concert, traditional dance and music performances, food tastings, a beauty seminar, and more.
For more information: www.koreafestivaluae.com
Smart words at Make Smart Cool
Make Smart Cool is not your usual festival. Dubbed “edutainment” by organisers Najahi Events, Make Smart Cool aims to inspire its youthful target audience through a mix of interactive presentation by social media influencers and a concert finale featuring Example with DJ Wire. Here are some of the speakers sharing their inspiration and experiences on the night.
Prince Ea
With his social media videos accumulating more half a billion views, the American motivational speaker is hot on the college circuit in the US, with talks that focus on the many ways to generate passion and motivation when it comes to learning.
Khalid Al Ameri
The Emirati columnist and presenter is much loved by local youth, with writings and presentations about education, entrepreneurship and family balance. His lectures on career and personal development are sought after by the education and business sector.
Ben Ouattara
Born to an Ivorian father and German mother, the Dubai-based fitness instructor and motivational speaker is all about conquering fears and insecurities. His talk focuses on the need to gain emotional and physical fitness when facing life’s challenges. As well managing his film production company, Ouattara is one of the official ambassadors of Dubai Expo2020.
