Millions of jobs are safe
Unprecedented Government cash boost to protect workers and economy from impact of Covid-19
WAGES and jobs will be saved by an unprecedented Government cash boost to protect the country from the devastating impact of the coronavirus.
The massive financial rescue plan announced by Chancellor Rishi Sunak helps anyone who faced losing their livelihood in the global pandemic, guaranteeing 80 per cent of wages up to £2500 a month.
The move came as it was announced that all pubs, cafes and restaurants were to close from last night to limit the spread of highly contagious Covid-19.
The wages rescue package was backed across Scotland, as the First Minister, trade unions and campaigners said it could stop millions falling into poverty.
The Chancellor said his plan is among the most comprehensive in the world, following similar moves in Scandinavian countries.
He said employers can apply to HM Revenue and Customs for a grant covering most of the wages of people not working but kept on the payroll.
Sunak said: “We can today confirm an unprecedented package of support to protect people’s jobs and wages.
“And we’re strengthening our safety net at the same time.
“I said we would help individuals, businesses and the most vulnerable through this outbreak and I meant it. We will do whatever it takes in the weeks and months ahead.” But in an address last night, he sounded a note of caution as the virus continues to shut entire countries down.
“The truth is we are already seeing job losses and there may be more to come,” he said. The Coronavirus Job Retention Scheme means: ●Workers can keep their jobs. ●The Government pays 80 per cent of wages up to £2500 a month. ●The scheme will be backdated to March 1 and open for three months, extended if necessary. ●VAT due between now and June will be deferred. ●Income tax due in July for selfassessment will be deferred to January next year, helping 5.7million businesses. ●£1billion of support for renters through increased housing benefit and Universal Credit.
In total, Sunak said it represented a direct cash injection of more than £30billion – equivalent to 1.5 per cent of GDP.
SNP Westminster leader Ian Blackford welcomed the plan but said he still hopes for more on welfare protection.
“In particular, we will seek further support for the selfemployed, improved sick pay and strengthened welfare protection for everyone,” he said.
Tracy Black, of business group CBI Scotland, said: “It marks the start of the UK’s economic fightback – an unparalleled joint effort by enterprise and government”
Peter Kelly, of the Poverty Alliance in Scotland, said it “will not only reassure people whose jobs are at risk but also employers who were facing difficult decisions”.
Prime Minister Boris Johnson rounded off a day of major developments by announcing extreme changes to ordinary life.
In a televised statement, he said: “Following agreement between all the four nations of the United Kingdom, we are collectively telling cafes, pubs, bars and restaurants to close tonight, as soon as they reasonably can – and not to open tomorrow.” They will still be able to provide take-out services.
Nightclubs, cinemas, theatres and gyms were also told to close.
Johnson said everyone has to limit social contact to address an expected spike in cases.
Nicola Sturgeon maintained the united front and urged Scots to follow advice in a heartfelt address. She also pleaded with people to stay at home and to stop panic-buying.
The First Minister said: “To older people: we are asking you to stay away from your grandkids, from the people you love.
“That’s hard. But it is for your protection, so you can stay around to see them grow up.
“To children: I know this is a strange time. You’re away from school, and won’t be able to spend as much time with friends.
“The adults around you are probably feeling a bit anxious too. So help them. Follow their advice. Study and do your homework. But don’t forget to have fun. And wash your hands.”