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UK coronavirus live: Rishi Sunak unveils stamp duty cut, furlough bonus and August discount for eating out UK coronavirus live: Rishi Sunak unveils stamp duty cut, furlough bonus and August discount for eating out
(32 minutes later)
Chancellor delivers summer statement in the Commons on UK economic recovery from pandemicChancellor delivers summer statement in the Commons on UK economic recovery from pandemic
Samuel Tombs of economics consultancy Pantheon Macroeconomics says Rishi Sunak has given employers an incentive to bring more workers back part time, rather than fewer full time:
ITV’s Robert Peston thinks the August meal deal might just lead to more people eating out earlier in the week, instead of at the weekend.
The UK car industry is unhappy that Rishi Sunak announced no targeted support for their sector today.The UK car industry is unhappy that Rishi Sunak announced no targeted support for their sector today.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, says other countries are providing more help:Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, says other countries are providing more help:
There had been speculation that the government might launch a scrappage scheme to encourage people to trade in old cars for new models. Sales in 2020 are down over 48%, to their lowest level since 1971.There had been speculation that the government might launch a scrappage scheme to encourage people to trade in old cars for new models. Sales in 2020 are down over 48%, to their lowest level since 1971.
Here is the start of a Twitter thread from Faiza Shaheen, head of the Class (Centre for Labour and Social Studies) thinktank, on the summer statement.Here is the start of a Twitter thread from Faiza Shaheen, head of the Class (Centre for Labour and Social Studies) thinktank, on the summer statement.
And this is her conclusion.And this is her conclusion.
Here’s our Money editor, Hilary Osborne, on the temporary cancellation of stamp duty on property sales up to £500,000:Here’s our Money editor, Hilary Osborne, on the temporary cancellation of stamp duty on property sales up to £500,000:
More here:More here:
The Institute for Fiscal Studies has released its first full statement on the Rishi Sunak announcement. Here is the overview from its director, Paul Johnson.The Institute for Fiscal Studies has released its first full statement on the Rishi Sunak announcement. Here is the overview from its director, Paul Johnson.
Here are some other points the IFS is making about the announcement.Here are some other points the IFS is making about the announcement.
The government has spent an extra £30bn on health services since March, of which £15bn has gone on PPE, according to the Treasury documents.The government has spent an extra £30bn on health services since March, of which £15bn has gone on PPE, according to the Treasury documents.
The government will be spending almost £190bn on coronavirus rescue measures on the basis of what has been announced so far, almost 9% of what the UK economy produced in 2019-20.The government will be spending almost £190bn on coronavirus rescue measures on the basis of what has been announced so far, almost 9% of what the UK economy produced in 2019-20.
The kickstart job subsidy scheme for the young is very similar to Labour’s future jobs fund in 2009, which had “lasting positive impacts on the employment of those employed under the scheme”.The kickstart job subsidy scheme for the young is very similar to Labour’s future jobs fund in 2009, which had “lasting positive impacts on the employment of those employed under the scheme”.
The IFS says that if takeaways had been included in the August food discount scheme, that would be “more effective in increasing output without compromising social distancing”.The IFS says that if takeaways had been included in the August food discount scheme, that would be “more effective in increasing output without compromising social distancing”.
The IFS says there is a risk that the energy efficiency vouchers will “lead to inflated prices of energy efficiency equipment, particularly if the scope of eligible spending is narrow”.The IFS says there is a risk that the energy efficiency vouchers will “lead to inflated prices of energy efficiency equipment, particularly if the scope of eligible spending is narrow”.
Sacha Lord, nighttime economy adviser for Greater Manchester, is also concerned that pubs that mainly sell beer are not benefiting from the VAT cut:Sacha Lord, nighttime economy adviser for Greater Manchester, is also concerned that pubs that mainly sell beer are not benefiting from the VAT cut:
Lord has welcomed the “Eat out to help out” scheme, but cautions that restaurants and pubs need to maintain social distancing.Lord has welcomed the “Eat out to help out” scheme, but cautions that restaurants and pubs need to maintain social distancing.
[Correction: Greene King CEO Nick Mackenzie didn’t actually mention “traditional pubs” as I mistakenly wrote earlier (now fixed). Apologies. GW][Correction: Greene King CEO Nick Mackenzie didn’t actually mention “traditional pubs” as I mistakenly wrote earlier (now fixed). Apologies. GW]
The Ministry of Justice has announced that cleaners in its central London offices will now receive full pay if they are self-isolating or off sick, our colleague Harriet Grant reports here. The announcement follows Guardian reports in June that the MoJ failed to investigate a potential Covid-19 cluster among its cleaners.The Ministry of Justice has announced that cleaners in its central London offices will now receive full pay if they are self-isolating or off sick, our colleague Harriet Grant reports here. The announcement follows Guardian reports in June that the MoJ failed to investigate a potential Covid-19 cluster among its cleaners.
Here is some more reaction to the summer statement from three of the smaller parties at Westminster.Here is some more reaction to the summer statement from three of the smaller parties at Westminster.
From the SNP’s Treasury spokeswoman, Alison Thewliss:From the SNP’s Treasury spokeswoman, Alison Thewliss:
From the acting Lib Dem leader, Sir Ed Davey:From the acting Lib Dem leader, Sir Ed Davey:
From Plaid Cymru’s Ben Lake:From Plaid Cymru’s Ben Lake:
Economic thinktank NIESR is not impressed with the summer statement.
They reckon that ending the furlough scheme at the end of October will hurt confidence; the new £1,000 bonus for taking staff back on may not provide enough support.
Garry Young, the National Institute Of Economic and Social Research deputy director, says some companies will now lay off furloughed staff:
Today’s temporary VAT cut is likely to end up boosting revenues in the hospitality sector, rather than cutting prices, our colleague Rob Davies reports:
Len McCluskey, the Unite general secretary, says Rishi Sunak’s summer statement will not do enough to protect jobs. He says:
The latest Guardian Politics Weekly podcast is out. Jonathan Freedland and Kate Proctor look at what Rishi Sunak announced in the summer statement. Rajeev Syal speaks to Sir Peter Soulsby about what the government got wrong with Leicester’s local lockdown. Plus, Kate Andrews and Lord Stewart Wood discuss the politics of a second wave. It’s here.
It is not just the UK Conservative government that is getting criticised for its handling of care homes during the coronavirus crisis. In the Welsh parliament (or Senedd), the health, social care and sport committee has published a report (pdf) saying the Welsh Labour government “badly let down” care homes. It says:
Today the National Records of Scotland also published one of its occasional analyses on coronavirus deaths by ethnic group.
Based on data from mid-March to mid-June, the key finding is that deaths among people in the south Asian ethnic group – which includes Indian, Pakistani and Bangladeshi – were almost twice as likely to involve Covid-19 as deaths in the white ethnic group, after accounting for age group, sex, area-level deprivation and urban rural classification.
In April Guardian research revealed that ethnic minorities in England were dying in disproportionately high numbers compared with white people, with people from minority groups appearing to be over-represented among the coronavirus deaths, by as much as 27%.
The Department of Health and Social Care has published its latest UK coronavirus death figures. There have been a further 126 deaths, taking the total to 44,517.
This is just the figure for people who have tested positive and died. As we try to point out every day, this official headline total used by the government is not the actual total. That is because these figures only include people who tested positive for coronavirus and died. Taking into account the deaths of people who did not have a test, but where coronavirus was cited on the death certificate, the real total is more than 55,000.
Overall, the daily death toll seems to be closer to plateauing rather than continuing to decline. Here is the latest chart from the government’s coronavirus dashboard (which does not include today’s figures because, confusingly, it does not get updated daily at the same time as the DHSC figures come out).
Landlords who mainly sell beer rather than food may feel a little bitter tonight.
The government’s temporary VAT cut only applies to food and non-alcoholic drinks.
Nick Mackenzie, chief executive of Greene King, says it’s disappointing that beer isn’t covered too:
The Campaign for Real Ale is also concerned that community pubs are losing out. Many need a sales boost, having been closed for several months during the lockdown.
In his speech Rishi Sunak said he would be publishing research showing that the poor have been protected the most by the coronavirus measures taken so far.
Here is the Treasury document (pdf) he was referring to. And here is the key chart in it, which tries to estimate the impact various government measures had on household incomes by May, compared with what would have happened if there had been no intervention.
Andy Burnham, the mayor of Greater Manchester, has welcomed the measures outlined in Rishi Sunak’s statement but said they belonged to “normal economic times” and that much more needed to be done to “build resilience in our poorest communities”.
He said the chancellor should have increased the rate of statutory sick pay (SSP) from £95.85 per week and extended it to the 2 million workers for whom it is not currently available. The former Labour minister said people felt compelled to go into work despite being ill because they cannot afford to live on SSP.
Social care staff should have been given an immediate pay rise and been able to isolate on full pay, Burnham said, adding that there was no support for directors of limited companies who had been “forgotten” by the Treasury.
On coronavirus, Burnham said he had written to the health secretary, Matt Hancock, today to raise “specific concerns” from the region’s public health directors about the lack of data being provided by the government.
He said the lack of complete and timely data from the government on patients affected, their ethnicity, and test and trace results was hampering the local response to any outbreaks.
The government has said it cannot provide data on specific patients due to confidentiality rules. However, Burnham said the deadlock was preventing health officials from launching speedy investigations and that providing patient data was normal practice for any notifiable disease, adding: