Rishi: £9bn bailout for self-employed is the world’s most generous
CHANCELLOR Rishi Sunak rode to the rescue of nearly four million self-employed workers yesterday with a £3billion-a-month bailout.
The package, mirroring last week’s aid to employed people, will cover 80 per cent of the average profits of those who work for themselves – up to a limit of £2,500 a month.
Running initially for three months, it is open to anyone with trading profits of up to £50,000 – and who makes the majority of their income from self-employment.
Mr Sunak insisted the scheme, which is expected to be operational from June, was “one of the most generous in the world”.
He added: “To all those who are self-employed, who are rightly anxious and worried about the next few months, you haven’t been forgotten, we will not leave you behind.”
Complicated
His speech at Downing Street was welcomed by business leaders and Tim Roache of the GMB union, who said: “Millions of selfemployed workers will sleep easier tonight.”
Mr Sunak admitted that helping the self-employed was far more complicated than standard pay-as-you-earn employees.
Until the scheme is set-up, business interruption loans will be available while self-assessment income tax payments can be deferred until the end of January.
Self-employed people can also access Universal Credit in full.
Mr Sunak said the package will help 95 per cent of those who work for themselves – around 3.8 million. Some 1.7 million are not believed to be eligible because they earn less than half of their income from self-employment. Another 200,000 won’t get the aid because their annual profits exceed £50,000.
Only people who filed a tax return for last year will be eligible. Those who failed to submit their returns by the January deadline will be given four weeks to put them in, so they can qualify.
Mr Sunak put self-employed workers on notice that they face higher tax bills in the future as a result of the reforms. He said that during the crisis they are being treated the same as PAYE staff – despite paying lower tax rates.
He said: “Rather than be too specific right now about future tax policy, it’s just an observation that there’s currently an inconsistency in contributions between selfemployed and employed.
“It does throw into light the question of consistency and whether that is fair to everybody. Especially when we get through this and are chipping in together to right the ship afterwards, making sure everyone is doing their bit.”
THE Government’s response to the coronavirus outbreak is nothing less than incredible. Chancellor Rishi Sunak yesterday brought relief and hope to millions of self-employed workers when he announced measures to ensure they do not face financial ruin.
This came on the heels of unprecedented support so companies will not go out of business and staff will not lose their livelihood as a result of the lockdown.
Prime Minister Boris Johnson and his team deserve accolades for the speed and pragmatism they have displayed as they have rushed not just to save lives but to avert an economic and social catastrophe.
Under Mr Johnson, the Conservatives startled commentators when they won a swathe of seats in the December election that had voted Labour for generations.
That trust has been rewarded and Mr Johnson and Mr Sunak have proved themselves bona fide champions of working men and women.
If there was the equivalent of an Oscar night for world politicians, this duo would have a real shot at winning the top gongs. With imagination, courage, indefatigability and sheer grit, they have cast aside ideology and cranked every lever of government to protect the country.
When we watch ministers refuse to succumb to exhaustion, fear or despair, we see what public service really looks like. Our own actions can also have profound consequences, and each of us has a personal responsibility not to do anything that could lead to the infection spreading.
We are a country that cherishes liberty and Britons have fought to restore the freedom of their neighbours, so it can seem jarring when drivers are asked by police officers if they are making essential journeys. The sight of such a checkpoint on the Queen’s highway is a new experience.
But this is not a restriction of our rights but an appropriate response to the crisis that has gripped our nation. Like every other branch of the emergency services, these officers deserve our respect and gratitude.
Saving lives should be everyone’s priority.