Rishi sunak

A truism is emerging that the Tories’ massive public spending has left Labour politically with nowhere to go. This quasi-social-democrat version of conservatism supposedly leaves all of the opposition’s attacks on the Tories blunted – if there’s a Conservative government spending big, what does Labour have to offer? There is another way of looking at this, however. The current Chancellor’s spending plans could result in a perfect storm for Labour at the next election – a chance for Starmer to attack the Tories from both the left and the right. From the left, Labour can claim that they will spend money in a more ‘caring and thoughtful’ manner, something their audience is already geared to believe.

After Rishi Sunak's attempts to kickstart the economy on Wednesday, the government has announced plans to further unwind the lockdown. From this weekend, artists and musicians can perform live outside while outdoor pools will also be opened. As of Monday, beauticians, spas, tattooists, and tanning salons can reopen. Finally those looking to work off any lockdown pounds can celebrate the news that gyms, indoor pools and leisure centres will open on 25 July. As has become the new normal, each relaxation comes with new caveats on social distancing. The announcement suggests that, as things stand, the UK's roadmap out of lockdown is broadly going to plan. However, there are still missing parts.

A huge increase in job centre advisers; special grants for companies taking on trainees; free cash for anyone insulating their home; cuts to National Insurance; reduction in VAT, and a £500 shopping voucher to re-boot a collapsing High Street. Oh, and an emergency GCRF, or Garden Centre Rescue Fund, to subsidise anyone who helps our heroic horticultural industry by building a new rockery or water feature. Okay, I’ll admit, I made that last one up. But all the others are suggestions that have been put forward for the Chancellor’s mini economic statement tomorrow. But perhaps Rishi Sunak should try something new: silence. In truth, the government has done an extraordinary amount to help people and businesses through this epidemic.

One of the most generous Covid-19 emergency measures in Europe has been extended until the end of October – with some caveats. Chancellor Rishi Sunak has just told the House of Commons that the furlough scheme – which covers up to 80 per cent of an employees’ wages, with a cap of £2,500 per month – will continue to operate unchanged between now and the end of July. From August, furloughing will become more flexible, allowing for part-time work. The scheme remains extended to all sectors, avoiding the optics of industry favouritism, which could easily extend to regional favouritism, given the dependence on certain sectors in different parts of the UK. At first, the scheme was intended for lockdown.

Just weeks ago, Chancellor Rishi Sunak claimed that widespread use of the furloughing scheme was proof of its success. But it appears the government has over-achieved. The Treasury’s original prediction was that 10 per cent of businesses would use the salary safety net; the figure has turned out to be closer to 70 per cent. The cost for just one month of the scheme is estimated to be £8 billion, only £3 billion less than the NHS’s monthly budget. ‘We’re not talking about a cliff-edge but we have to get people back to work.’ says Matt Hancock, the health secretary. ‘We’ve got to wean off it.’ After telling ITV early this week that the scheme was ‘unsustainable’ for the long-haul, Sunak is changing tack.

How will the UK recover after lockdown? Although social distancing is expected to continue for months, talk has turned to how the government will deal with its coronavirus debts. The Treasury is seeking to raise £180 billion over the next three months to meet its pledges – putting the UK on course to see its budget deficit rise to a level never seen before in peacetime. Some estimates put borrowing this financial year at over £300 billion, far outpacing the years following the financial crash. This has led a number of public figures to predict a return to the Cameron and Osborne era with mass cuts in the years ahead.

Was the Chancellor wrong to guarantee only 80 per cent, rather than 100, of ‘coronavirus business interruption loans’ to keep small- to medium-sized companies afloat? Rishi Sunak’s announcement this week of fully guaranteed micro-loans for the smallest companies seeking to borrow up to £50,000 was reported as a partial climbdown in the face of pressure from the CBI and many of his own MPs to do away with the on-risk slice of the larger scheme, which provides loans of up to £5 million through 40 accredited banks — but which many would-be borrowers have claimed is a bureaucratic nightmare. Readers certainly confirm that picture.

At Wednesday's coronavirus briefing, Chancellor Rishi Sunak turned his attention (and the Treasury’s coffers) to the charity sector, which will receive £750 million to support vital services for the community. The money will be divided between small, local charities working with vulnerable people and charities that provide ‘essential services,’ with Sunak citing St John Ambulance and the Citizens Advice bureau as two examples of potential beneficiaries. The support comes as organisations like Cancer Research announced in recent days that they would have to scale back their medical research due to a projected drop in donations on which they rely to keep their services going.