Business

There are few really important budgets, but this is important. Sunak has to keep paying cash.budget

NNever say New variants of the coronavirus have swept the globe and may prove resistant to vaccines. If rising infection rates again put unbearable pressure on hospitals, Boris Johnson will press the pause button on the economy. But at present, Current blockade It will be the last.

The cost of closing most of the economy is enormous and constantly rising, so every effort must be made to ensure that this is the case. In addition, the effects of the pandemic have already widened UK demographic, class and ethnic disparities, and the risk of permanent scarring is clear.Social Costs of Blockade – Impact on happiness – As important as economic cost (although for many people the two are related).

At present, the possibility of further blockades is very small. Partly due to vaccines, and partly due to the fact that if Britain’s “irreversible” march to freedom turns out to be reversible after all, it would be a political disaster for the government.

But it is also because of less willingness to comply with strict restrictions on freedom. In my hometown on the weekends, people went out with friends in a warm climate. Apparently not everyone came from the same household, but they were sitting on a park bench, drinking coffee together and talking cheerfully. A group of five young people broke two fizz and opened it.

People have a message. Vaccine works And now that they are beginning to protect the most vulnerable people, they want to regain their lives.I will explain why it happened surge By booking a holiday as soon as the Prime Minister announces a roadmap to end the restrictions by summer. Currently, UK regulations stipulate that two households should not be mixed indoors. Mid May At the earliest. Judging by the way people actually behave, many will not wait that long.

Still, the unleashing of the economy will be phased out over the next few months, as the government has received advice from health and science experts. Some Tories are dissatisfied with the step-by-step approach, but if the number of cases begins to increase again, Chris Whitty and Patrick Vallance will provide political coverage to the Prime Minister. Ministers who have remained silent will say that Covid-19 must live with a vaccinated country.

One of those voices is Rishi Sunak. No peep was heard from the Prime Minister during the UK hibernation, but starting next week, the focus is on future plans. budget – Shift to what is needed for economic recovery.

Sunak early accepted that the pressure on the NHS by the new variant of Covid-19 meant that there was no viable alternative to the current blockade. His role was to continue to confuse money to pay for additional medical costs, corporate subsidies, temporary tax cuts, and the wages of millions of temporarily dismissed workers.

You need to resist the temptation to start a penny pinch on a budget.Borrowed more in the first year of work Other Prime Ministers in Peacetime History, Snacks need to keep splashing cash. Once upon a time, Margaret Thatcher’s dictation had merit. There is no alternative.

Of course, the prime minister will dress up his generosity with a warning that government spending must end. Many companies are struggling to survive, so we recommend that you don’t tax immediately, but there are talks that he may announce a corporate tax hike as a signal of intent.

We can wait for the deficit reduction. The slow and steady pace of deregulation requires continued government support for the economy, even if recovery turns out to be faster than expected.

The reason is simple. Snacks were able to anesthetize much of the pain caused by the blockade, but not save all business or all work.Indeed, as the latest official figures show, the number of paid employees has fallen by 726,000 since February last year, for a total of 425,000. People under 25.. When the health effects of a pandemic are most felt by older people, financial distress is disproportionate to young people who tend to work in areas such as hospitality, retail and leisure that have been hit hardest by restrictions. ..

As a result, Sunak has four major tasks next week. First, he must clarify that he will do whatever it takes to ensure a sustainable recovery. Second, he needs to invest additional resources to ensure that the NHS has sufficient capacity to deal with a recurrence of the pandemic next winter. Third, he needs to show friendly and affectionate care for tens of thousands of small businesses hanging at his fingertips a year after cash flow is depleted but costs continue to rise.

Targeted support for the hospitality industry helps curb youth unemployment, but changes in spending patterns during the pandemic have left some companies still unsuccessful, moving workers from one sector to another. Must be relocated to. So, fourth, snacks need to increase spending on work support, retraining, and apprenticeship for those who graduate from school or college.

There are few really important budgets. Most of what is in memory does so for the wrong reason. Snacks have to make sure this is different.

There are few really important budgets, but this is important. Sunak has to keep paying cash.budget

Source link There are few really important budgets, but this is important. Sunak has to keep paying cash.budget

Back to top button