Bank ‘ will do all it can’ to support business

BANK OF England governor Andrew Bailey has warned the surge in Covid- 19 cases threatens the outlook for the UK economy, but stressed policymakers will do “everything we can” to support households and businesses.

Speaking on a British Chambers of Commerce webinar, Mr Bailey cautioned over “hard yards ahead” for the economy as Britain faces a second wave of coronavirus infections.

He said the rapid rise of cases “reinforce the downside risks” to the economy as he laid bare worries over unemployment that is rising faster than shown in official data and long- term scarring from the crisis.

He said: “The latest news, that we are seeing a very unfortunate, faster return of Covid- 19 is extremely difficult news for all of us and the whole country.

“That does reinforce the downside risks we have in our forecasts. The Bank of England will do everything we can do within our remit and powers to support the businesses and people of this country. And we will do that.”

His comments came as it was announced that up to 6,000 jobs are being axed at Premier Inn owner Whitbread, with the group warning that the coronavirus crisis will continue to hammer demand.

The group said the cuts would impact 18 per cent of the total workforce across its hotel and restaurant brands, which also includes the Beefeater pubs and Brewers Fayre chains.

And Macmillan Cancer Support said it plans to cut 310 jobs after a dive in funding amid the coronavirus pandemic.

The charity announced the redundancy proposals as it warned it expects a £ 175m fall in fundraising income by the end of 2022.

Mr Bailey said now was the time to “stop and rethink” the furlough support scheme for workers, which comes to an end next month, in favour of a targeted approach.

But he said he did not want to “tie the Chancellor’s hands”, adding “the world is changing rapidly around us”.