Rishi Sunak Details Britain's COVID-19 Recovery Plan

July 8th saw Rishi Sunak, Chancellor of the Exchequer, deliver a comprehensive COVID-19 recovery plan to the House of Commons. The plan is tripartite focusing on Job Retention, Job Creation, and the revitalisation of the Hospitality and Tourism sectors. 

Sunak’s plan for Job Retention is to, first, phase out the Jobs Retention Scheme, which has provided firms financial support to keep employees on payroll. The scheme will end formally on October 31st, 2020 with Sunak citing that “It is in no one’s long term interest for the scheme to continue forever, least of all, those trapped in a job that can only exist because of a government subsidy.” To replace this, Sunak introduced the Jobs Retention Bonus, essentially giving a £1000 bonus to businesses per furloughed employee that they rehire and retain until January 2021. He made clear his message to businesses: “if you stand by your workers, we’ll stand by you.” Furthermore, to address worries of unemployment in under 25s, he introduced the Kickstart Scheme which will create financial incentive for employers to create jobs for Britons aged 16-24 who are at risk of long term unemployment.

Sunak’s plan for Job Creation relies on “historic investment in infrastructure” and a “£3bn Green Jobs Plan to save money, cut carbon, and create jobs.” He emphasised that “this is going to be a green recovery with concern for our environment at its heart” – though, many have already questioned if this plan truly embodies that spirit. As well, to support job creation, Sunak announced a cut to Stamp Duty Land Tax – lasting until March 31, 2021 – that will reinvigorate the market. 

The final topic of Sunak’s plan is the revitalisation of the Hospitality and Tourism sectors – providing nearly 2m jobs in the UK. He announced the slashing of VAT from 20% to 5% on food, accommodation and attractions for the next 6 months, calling it a “£4bn catalyst” for these industries. Furthermore, he introduced the “Eat Out to Help Out” Scheme which offers a 50% discount – up to £10 per head – for customers when eating out. The hope is that lower VAT and the “Eat Out to Help Out” Scheme will help to bolster these key industries and protect the jobs that already exist. 

All in all, Sunak tried to make it clear that “while hardship lies ahead, no one will be left without hope” and that Parliament will “protect, support, and create jobs” moving forward into COVID-19 recovery.