JOBS
and less government support are likely to push unemployment up over the winter months,” said Ian Stewart, chief economist at consultancy Deloitte. “The path of the virus continues to dictate the direction of the economy.”
On Monday, the government carved England into three tiers of coronavirus risk in a bid to slow the outbreak, putting the northern city of Liverpool into the highest-risk category and shutting its pubs, gyms and betting shops. To ease the economic hit, the government will pay two-thirds of the salaries of workers in companies that have to close.
Without directly backing the new plan, Bailey said it is “entirely correct” that as the incidence of COVID-19 changes, the policy response changes, too.
Leaders across the north of England and unions have said the new package is unacceptable because it is not as generous as the national scheme and does not cover workers who are affected indirectly by new restrictions.
“Wage replacement should be 80 per cent for businesses who have to shut,” said Frances O’Grady, general secretary of the umbrella Trades Union Congress. “We need a more generous shorttime working scheme for firms which aren’t required to close but will be hit by stricter local restrictions, and self-employed people in local lockdown areas need help, too.”