Treasury Chancellor Rishi Sunak left 10 Downing Street after attending a cabinet meeting on February 14, 2020.
UK Finance Minister Rishi Sunak is due to announce a new emergency package of measures to curb unemployment, replacing the country’s granting scheme, which is due to expire next month.
The scheme has subsidized 80% of the wages of millions of workers lost in the pandemic, but Sunak confirmed in July that it would be liquidated as the country began to step out of the blockade measures instead of offering businesses a bonus program to provide dismissing employees back to work.
However, as many of these workers have been hired by the hotel industry and the government is now forced to impose some restrictions due to the rise in Covid-1
Earlier this week, Prime Minister Boris Johnson announced a 10pm evening for guests in a bid to curb the spread of the virus. The United Kingdom reported 6,178 cases on Wednesday, up 1,252 from Tuesday, with a total of 412,000 confirmed cases.
So far, the British media have suggested that Sunak may announce more initiatives to subsidize wages and financial assistance, while some have suggested that the wage supplement scheme currently in place in Germany and France may be on the table.
Just last week, the Bank of England gave its first indication that negative interest rates could be considered, as it appears to be playing a role in shrinking the economy against the effects of the pandemic, with GDP falling by a record 20.4% in the second quarter.
“Financial markets have largely welcomed Chancellor Sunak’s speech, sparking a brief increase in trading activity,” said Giles Coglan, chief currency analyst at HYCM.
“However, this is likely to be short-lived, and I expect a general retreat for safe havens and cash savings as investors seek to hedge against market uncertainty.”