On Wednesday, Treasury Secretary Rishi Sunak unveiled a UK budget focused on recovering after the unprecedented shock of the Coronavirus, with continued massive aid for jobs and businesses, but also potential tax increases for large corporations.
The Finance Minister told the House of Commons that the UK government has “done and will do” “whatever is necessary” to help Britons and businesses overcome this crisis.
The United Kingdom, the European country with the worst health record with around 123,000 deaths attributed to the virus, is also the developed country that suffered the biggest economic shock with its GDP falling 9.9% last year, the worst collapse in 300 years.
But despite providing £ 280 billion in aid to protect jobs and businesses in the face of the pandemic’s impact, “the damage to our economy has been severe,” Rishi Sunak admits.
Accordingly, the Minister of Finance announced the extension of the partial unemployment system until the end of September, thanks to which the government covers up to 80% of wages up to 2,500 pounds per month.
An equivalent system for the self-employed is to be expected. Employers will be called upon to contribute from July when the government cuts its subsidy to 70% of wages and then 60% as of August.
New business loans are also planned as well as more than £ 700 million to help cultural and sporting companies.
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