tv BBC News BBC News July 8, 2020 1:30pm-2:01pm BST
get expensive and therefore you'll get the benefit there, they're not going because they don't feel comfortable doing it. most of this vat cut, some of it may be passed along to consumers. i suspect a lot of it will be taken by the business owners to try and, you know, put their margins because they feel they have got there until that hangs and don't forget there were a lot of people out there who are not included in all this will be heartbroken today that there was nothing them, for example same directors of limited companies people who started a job at the wrong sort of hand and ski freelancers. people who fell between the gaps of the existing schemes. was i going to be an answer there? no. monetary policy of the bank of england saying that he felt that the recovery had been faster so far that he thought, admittedly with big caveats, what you make of that today? we are clearly going to have some part of a v shaped recovery in the sense that we went down very
fa st the sense that we went down very fast and we will come up very fast. the question is,... well, the issue is, we are not going to get to the top of the v anytime soon, so we have got very fast, we will come up some distance very fast and then probably start slowing down again such that, i do not honestly know any economists you really think that ina year's any economists you really think that in a year's time we will be back at the top of the v, in other words where we would have been if this had never happened, so the issue is really not the speed of the economy growing over the past two or three months, it is what happens over the coming months. but can ijust add a different point? we have been talking about the size of this, i mean, actually, this is a very... in any normal times and actually any normal recession this is far bigger than the 2010 recession. the one thing that the chancellor skipped over, rather, right at the beginning of this tour, he said that he has allocated 50 billion of i think you said 49 billion of money to public services. well, the last time we looked the last time the office for
budget responsibility looked, that numberwas budget responsibility looked, that number was about 18 or 19 billion, so number was about 18 or 19 billion, so suddenly an extra 30 billion, a huge number, has appeared in his numbers, and if you look at the treasury document an astonishing 15 billion of that is simply to buy ppe for front line staff. now, that is a huge amount of money for that kind of equipment. there is another 10 billion allocated to the testing and tracing things that have been mentioned so much. but also, very substantial amounts of additional money bet, for, obviously, the culture secretary we have heard, the transport local authorities, and although sorts of things. it is quite surprising in a way that that very, very big amount of money numbers were skated over quickly, because that will both support public services, clearly anyone manufacturing ppe will be doing pretty well after that, and also supporting local government and other parts of the public sector and jobs within that as well sol
other parts of the public sector and jobs within that as well so i think thatis jobs within that as well so i think that is an important part of the recovery package as well as a very large increase in traditional, as it were, public service spending on top of the job scheme that we had about. well, pauljohnson, thank you very much. yes, it was somewhat glossed over and we will try to pretend that issue, particularly the spending on what we would call things related to covid, ppe, buti what we would call things related to covid, ppe, but i think we can be joined now by ian blackford, who is the leader of the snp in westminster. welcome to you. ian, you have been calling on the government to come up with a bigger stimulus package of around £18 billion —— £80 billion. what did you make of the measures today? we have just heard from a man from the institute for fiscal studies that they are generous in the spending he has said a £49 billion being dedicated to public services is also huge. yeah, of course in the context. . . huge. yeah, of course in the context... that would be correct, but we need to look at that in the scale of the challenge that we've faced but this is something that none of us have ever seen it in our
lifetimes and i think what has to be of it is the desire that we don't return to anything like the levels of unemployment that we sort of the 19805 of unemployment that we sort of the 1980s because of the damage that will do to the individual, to businesses, to consumers, and i think the thing that is really missing from this above all else todayis missing from this above all else today is to make sure that we have got that investment into the economy and particularly an infrastructure side of things that we really needed to kick—start that, and whilst i welcome some of the initiatives today, it simply does not go far enough. it doesn't go anywhere near, if you like, the investment which is taking place in germany which is 4% of german gp and —— german gdp and thatis of german gp and —— german gdp and that is why there has to be an investment of at least 80 billion. let's have a look at something specific that you are asking for which is the extension of the furlough scheme and the chancellor made it clear that that is not going to happen the next day or october. how would you extend and how much is it going to cost? i get the point that what we need to do is create the circumstances where people have got to come back into work but what
i would say to you joan, as welcome as the furlough scheme has been and it's something that has been push far ahead of its introduction, if it is withdrawn before companies can save you taking place back on again we will simply would delay the problem. —— safely take employees back on again. if you think about the tourist industry in places like the tourist industry in places like the highlands and other places in the highlands and other places in the lake district in, and so on, we have a pretty well restricted season over the course of the summer months. it means that people in those industries are effectively going to see three winters, and we need to support them so that they can need to support them so that they ca n recover need to support them so that they can recover as we head into 2021.|j understand that, but people need to know how long would you extend it for and how much it would have cost, because you will have done the costings for this? so can you tell us costings for this? so can you tell us know what that would be. well, you know what the cuts out on a monthly basis at the moment. the point is that this will reduce as we got a 2020. —— costs are on a monthly basis at the moment. if we
don't have this in place that means that people are going to lose their jobs and businesses will close so it will restrict capacity be do within the economy. it is a full savings to end it when we still need it. so when will you extend it to?|j end it when we still need it. so when will you extend it to? i would extend it for as long as we need it andi extend it for as long as we need it and i would suggest that is probably to the spring of next year in certain circumstances but a lot is going to depend on what happens over the autumn in the winter months, when we see a second wave of this, but because let's been under no illusion, if there is a second wave and the damage that that would cause to the economy would be very, very considerable indeed, so first and foremost considerable indeed, so first and fore m ost we considerable indeed, so first and foremost we have to deal with the health aspects of this. we have, as governments, we have shut the economy down. we have a responsibility to individuals and the company they have been put in this position through no fault of their own there is an obligation on us their own there is an obligation on us to support them and quite simply while they are... i'm not being churlish because there are bits today that i welcome but it simply does not go far enough to create confidence in the economy and forced
to ignore the economy. i don't want to ignore the economy. i don't want to bea to ignore the economy. i don't want to be a situation where young people or anyone else are facing unemployment and it is about how we avoid that that is critical and if i may say so, we need to make sure... the scottish government, the scottish parliament have the power needs. alight, ian, we're going to have to leave you there because you haven't got long in the programme. one of the things said by both johnson and repeated by rishi sunak is that no nationalist can ignore that the policies that have been put in place had been in because of the uk treasury making a case of the union. it was interesting that that he's seen it mentioned that in a very full throated way at the beginning of his statement and that isa beginning of his statement and that is a response to what he has seen is quite a notable trade in polling numbers on scottish independence during this crisis when we have seen what is normally a very narrow majority in polling again that seems to have switched in the past couple of months whilst the government in edinburgh and westminster have been
tied to handle various aspects i think that is something we are fully going to see more from the government, actually, as you go to a full throated using any occasion, perhaps, to chuck in edinburgh and westminster have been tied to handle various aspects i think that is something we are fully going to see more from the government, actually, as you go to a full throated using any occasion, perhaps, to chucking the reminder whole any occasion, perhaps, to chucking the reminderwhole uk, and, of course, if scotland was an economy on its own it might have more trouble being able to have a splash ina way trouble being able to have a splash in a way that the uk government has been able to do with the bank of england as a last resort. let us talk to an economic secretary to the treasury. going to seven central lobby. welcome to you john. we have just been going over the main measures but of course the centrepiece was this jobs retention scheme. the thing is, is it going to be enough to prevent mass unemployment? the claimant count has doubled more than double this year to more than 3 million. injust doubled more than double this year to more than 3 million. in just 48 hours last week 12,000 job losses we re hours last week 12,000 job losses were announced. so, you haven't been able to save all those jobs, and you have been able to help others people? —— you have not been able to
help others people. john, can you heroesare, we do seem to have a hassan problem. we will try to come back to the economic secretary there later. the question is at the at the moment, the schemes that have been announced today are all well and good but not for those people who are already employed, who have lost their jobs, are already employed, who have lost theirjobs, and are already employed, who have lost their jobs, and probably are already employed, who have lost theirjobs, and probably very recently. they will take some time to get up and running because of necessity. if you are somebody waiting to find out whether or not they cafe that you work at can survive through the next couple of weeks, something that might take a while to get up and running is not necessarily going to help very much. this is always the danger with any state creative policy, any kind of government and state backed scheme in order to get the cash out there has to be some kind of administration, some kind of bureaucracy, because taxpayers money cannotjust be bureaucracy, because taxpayers money cannot just be chucked bureaucracy, because taxpayers money cannotjust be chucked around without checks and balances and no
process. in the meantime, there are employers big and small who are already under great financial pressure having to let people go. we will see if we can connect withjohn glenn again. we havejust been discussing the claimant count, it has more than doubled this year to more than 3 million. in just 48 hours last week martell has in job losses were announced. for those people, today's measures are too late. the government today announced a comprehensive response to address thejobs challenge. a comprehensive response to address the jobs challenge. it's about protecting and creating jobs and doing everything we can cross a whole number of interventions to create programmes that are going to get people into work and to maintain employment for those who have been furloughed. do you accept that for those people, nearly feline people in terms of the claimant count, that it is too late? we have taking a significant number of steps to create new jobs today.
significant number of steps to create newjobs today. the interventions designed to deal with different scenarios that people face. that cut will be very significant for the hospitality and tourism sector. we have also intervened with the green intervention to create an opportunity for people insulate their homes, which will create thousands of jobs. that their homes, which will create thousands ofjobs. that is a direct intervention to give people the opportunity to create more jobs at this time. do you accept there will be significant numbers of unemployed people when a furlough scheme ends in october? we have created a series of interventions to do with the jobs challenge. the chancellor has always been absolutely clear that we will not be able to protect every single job, but we have tried to look at evidence at what works, where we can see there is a good chance it will work, and we have made those decisions across a whole range of interventions in our economy. i hope we will minimise the number ofjobs that are lost by the intervention
made today. you cite minimise, and you're right, rishi sunak said not every gel can be saved. people have been talking in the region of 4.5 million people unemployed— is that the skill of what we are looking at? today i am interested in getting the interventions are right that actually minimise the growth of the unemployed. i think that is what the public will expect us today. people wa nt public will expect us today. people want you to be honest about the scale of the challenge. when you hear things like 4.5 million unemployed, is that what the treasury has been considering and modelling? i'm not seeking to challenge how challenging the circumstances are. i am interested in making policy decisions with the chancellor that minimise the chances of higher unemployment. that is why we have created a number of initiatives today that are radical, some unprecedented, in all countries that do the right thing by the people of this country and giving the opportunity to gain newjobs, to stay injobs, the opportunity to gain newjobs, to stay in jobs, and the opportunity to gain newjobs, to stay injobs, and to the opportunity to gain newjobs, to stay in jobs, and to actually grow the profile of economic activity.
except during extended furlough scheme. wejust except during extended furlough scheme. we just heard except during extended furlough scheme. wejust heard ian blackford and labour, and for the same. what about the sectors that will really struggle with social distancing?m he chancellor said today, the oecd and others have pointed out they need to end the schemes is. leader plan for what happens when they end. thejob retention plan for what happens when they end. the job retention bonus plan for what happens when they end. thejob retention bonus gives plan for what happens when they end. the job retention bonus gives a massive incentive for employers to keep those employees are in for three months. that is a significant intervention that will address that concern. we will have to end out there, thank you forjoining us. simon? it all depends on whether they have got their calculation is right, is a thing of his set out to be born until january right, is a thing of his set out to be born untiljanuary to get £1000 and some people are on over £30,000 and some people are on over £30,000 a year. mollie keeping them all the way through to january even when the economy will be spectacularly weak? everything depends on that. a big expensive way of trying to sustain jobs. with no answers on how it will be paid for, and also an admission that the chancellor will probably have to be back because at these
problems are onlyjust beginning. that is all from us. we will be back next wednesday. this is bbc news worth simon mccoy. as we have been hearing, rushing soon as we have been hearing, rushing soon ak has announced a new economic update, a new scheme that could be worth up to £99 to bring back employees for that. rishi sunak said the furlough scheme cannot go on indefinitely and will be wrapped up in october but promises to pay companies £1000 for each employee of that he about the staff they sent home as part of the scheme. while we can't protect everyjob, one of the most important things we can do to prevent unemployment is to get as
many people as possible from furlough back to theirjobs. today we are introducing a new policy to reward and incentivise employers who successfully bring furloughed staff back, a newjob retention bonus. if you're an employer and you bring someone you're an employer and you bring someone back he was four allowed, and you continuously employ them through to january, we will pay you a £1000 bonus per employee. it is vital that people are not returning just for the sake of it, they need to be doing decent work. for businesses to get this bonus, the employee must be paid £520 on average in each month from november to january, the equivalent of the lower earnings limit in national insurance. the house should understand the significance of this policy. we will pay the bonus for all furloughed employees. so if
employers bring back all my main people who have been furloughed, this would be a £9 billion policy to retain people in work. our message to business is clear— if you stand by your workers, we will stand by you. mr speaker, the firm though was the right policy to support the people through the first phase of this crisis, but now in this new phase, we need to evolve our approach. today i want to set out for the house a new three point plan for the house a new three point plan forjobs. we need to first support people to find jobs. second, create jobs. and third, protectjobs. let me start with supporting jobs, and in particular, they help we want to provide for those who will be ha rd est provide for those who will be hardest hit by this crisis — younger people. over 700,000 people are leaving education this year, many
more arejust starting leaving education this year, many more are just starting out in their careers. coronaviruses hit them hard. under 25 careers. coronaviruses hit them hard. under25 are careers. coronaviruses hit them hard. under 25 are two and a half times as likely to work in a sector that has been closed. we cannot lose this generation, so today i am announcing the kick—sta rt this generation, so today i am announcing the kick—start scheme. a new programme to give hundreds of thousands of young people in every region and nation of britain the best possible chance of getting on and getting a job. they kick—start scheme will directly pay employers to create new jobs scheme will directly pay employers to create newjobs for any 16—24 year old at risk of long—term unemployment. these will be newjobs with the funding conditional on the firm praising thesejobs with the funding conditional on the firm praising these jobs are additional. these will be dissing jobs with a minimum of 25 hours per week, paid at least the national minimum wage, and they will be good
qualityjobs, minimum wage, and they will be good quality jobs, with employers providing kick starters with training and support to find a permanentjob. if training and support to find a permanent job. if employers training and support to find a permanentjob. if employers meet these conditions, we will pay young peoples wages for six months plus an amount to cover overheads. that means for a 24—year—old, the grant will be around £6,500. employers can apply to be part of the scheme from next month, with the first kick starters in their newjobs this autumn. they chancellor has also announced several measures he hopes will reboot the economy including a six month cut in vat from 20% to 5%, thatis six month cut in vat from 20% to 5%, that is for the hospitality and tourism sectors. let's hear more on what he had to say about that. today iam announcing what he had to say about that. today i am announcing two new measures to get the sectors moving and protect jobs. first, at the moment, vat on hospitality and tourism is charged at 20%, so i've decided for the next six months to cut that on food,
accommodation and attractions. eat in or hot takeaway foods from restau ra nts, in or hot takeaway foods from restaurants, cafe is and pubs, accommodation and hotels, b&bs, and ca rava n accommodation and hotels, b&bs, and caravan site. attractions like cinemas, theme parks and disease. all these and more will to reduce from next wednesday untiljanuary at the 12 from 20% to 5%. this is a £4 billion catalyst for the hospitality and tourism sector is, anything over 150,000 businesses and consumers everywhere, all helping to protect 2.4 millionjobs. but mr speaker, we will go further. the final measure i am announcing today has never been tried in the uk before. this moment is unique. we need to be creative.
so, to get customers back into restau ra nts, so, to get customers back into restaurants, cafe is and pubs, and protect the 1.8 million people who work in them, i can announce today that for the month of august, we will give everyone in the country and eat out to help out discount. meals eaten at any participating business, monday to wednesday, will be 50% off up to a maximum discount of £10 per head for everyone, including children. businesses will need to register, and can do so through a simple website open next monday. each week in august, businesses can then claim the money back with the funds in their bank account within five working days. 1.8 million people work in this industry. they need our support. with this measure, we can all eat
out to help out. the shadow chancellor, anneliese dodds gave her response. our country has been through a great deal over these past few months. hundreds of thousands have wrestled with this terrible disease. for many months, people have been going without being able to embrace their loved ones, even to say goodbye. tens of thousands have died. our nhs, social care and other workers have made extraordinary sacrifices— we owe them so much. the government have had to take big decisions too, we acknowledge that. today, mr speaker, should have been the day when our government chose to build a bridge between what has been done so far and what needs to be done so far and what needs to be done to get our economy moving again. it should have been the day when the millions of british people
worried about theirjobs and their future prospects had a loud taking off their shoulders. it should have been the day when we got the uk economy firing again. today britain should have had a back to work budget, but instead, we got this summer budget, but instead, we got this summer statement with many of the big decisions are put off until later, as the benches opposite know full well. labour is a constructive opposition during this time of crisis. we will not criticise for criticisms sake. but when the government falls short, we will speak up. the blunt truth is, we have one of the highest death rates in the world, and among the deepest economic damage in the industrialised world from coronavirus. so the very first bentley chancellor must do is
prevent additional economic damage due to the slow public health of his government. as we have seen throughout this crisis, the failure to match soaring rhetoric with meaningful action has consequences for people across our country. despite all its hot, the government has failed to create a fully functioning test, track and isolate the system. this has damaged public confidence, and in turn, harmed consumer demand. despite all this talk, the government has failed to produce a clear system for local lockdowns. the lack of timely information sharing has led to the imposition of an additional widescale lockdown in leicester. the government's contracts with outsourcing firms amount to almost £3 billion, but we still haven't got test, track and isolate working properly in the uk, like it is in
many other countries. government still hasn't got a grip on the low value and limited scope of sick pay, risking peoples ability to self—isolate. fear is corrosive, fear is hurting our economy. government has got to get this right. of course we welcome the government's announcement today of targeted vat cuts on hospitality and tourism, and vultures to be used in restaurants. local businesses desperately need that support. —— and vouchers to be used. so many people really need help right now, thatis people really need help right now, that is why we have repeatedly called for social security to better meet their needs and to prevent people risk risking losing their homes. if delivered properly, these measures should help. but the chancellor has himself said that the best the government can do to boost demand is to give consumers and workers the confidence and
psychological security that they can go out to work, to shop and to socialise in safety. so, please, chancellor, work with your colleagues so our public health response catches up with that operating in other countries. anneliese dodds speaking for labour. plenty more reaction to the chancellor's statements throughout the afternoon on bbc news. for now, let's catch up with the weather. good afternoon. there are two very different types of weather affecting the uk at the moment. for some, it looks like this — beautiful blue skies from a weather watcher in argyll and bute. but on the south coast of england, well, grey skies, some mist and drizzle, all because of this frontal which will continue to bring outbreaks of rain across the southern half of the uk, particularly through the next 24 hours. in fact, another pulse of slightly wetter weather working its way in from the west as we head through the rest of today, starting to clip into northern ireland, wales, the south—west,
but generally speaking across the southern parts it's cloudy and damp, quite humid. some brighter skies and sunshine further north, but with a scattering of showers. then through this evening and tonight, that pulse of heavier rain clips into northern ireland, made through wales, into northern england, parts of east anglia. it stays cloudy and murky to the south of that, with some mist and fog around the coast. very humid, 15 degrees for cardiff and london, cooler and fresher further north and west where you keep clear skies through the night. as we go into tomorrow, the splits continue. across scotland, much of northern ireland and northern england, we see some time but a scattering of showers. still misty and murky further south, likely to be some fog affect increase of the south—west and wales. some patchy rain continuing through the midlands, east anglia and the south—east. a little bit breezy doubt was the south as well. some of that cloud getting into northern england, the foreign operator with some sunshine, also northern ireland and scotland. a scattering of shells into the
afternoon here, some thunderstorms in places. with very light winds, though showers could be slow—moving. some of those showers will continue on into friday, particularly across the eastern side of the uk. further west looks a little bit drier with some spells of sunshine. with the wind is coming down from the north—west, not especially warm. then the weekend, high pressure is going to build his way in from the west, that means settle better. set on dry across pretty much all part of the uk on saturday. it will be warmer by sunday, 2425 degrees. dry for my spots further north, but north—western parts of scotland incurred to see just a little bit of rain at times on sunday.
this is bbc news. i'm simon mccoy. the headlines... the chancellor rishi sunak has thrown a lifeline to the uk economy, unveiling a raft of measures to get the country moving after a prolonged coronavirus lockdown. people need to know that although hardship lies ahead, no one will be left without hope. businesses will receive a £1,000 jobs retention bonus for every furloughed employee they bring back to work and keep on the books. the chancellor confirmed a new £2 billion kick start scheme to create morejobs for young billion kick start scheme to create more jobs for young people. billion kick start scheme to create morejobs for young people. and stamp duty will be temporarily cut in england and northern ireland for properties costing less than £500,000.
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