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UK coronavirus live: Starmer attacks 'serial incompetence' of Tory handling of Covid crisis | UK coronavirus live: Starmer attacks 'serial incompetence' of Tory handling of Covid crisis |
(30 minutes later) | |
Latest updates: Labour leader urges ministers to consult with local leaders over increased restrictions and stop ‘Whitehall knows best’ approach | Latest updates: Labour leader urges ministers to consult with local leaders over increased restrictions and stop ‘Whitehall knows best’ approach |
Shadow chancellor Anneliese Dodds has said Rishi Sunak’s job support scheme is “forcing businesses to flip a coin over who stays and who goes” because it is cheaper to employ one worker than two to do the same hours. | |
She said the cost to an employer of bringing back two workers in the arts sector for half of the week versus one for the whole week is £163 in the UK - compared with £98 in the Netherlands, £69 in France and nothing in Germany. | |
“The Chancellor’s sink-or-swim Job Support Scheme is forcing businesses to flip a coin over who stays and who goes,” she tweeted. | |
The job support scheme is a replacement for the coronavirus job retention scheme, and will involve the government contributing towards the wages of employees who are working fewer than normal hours. | |
The pace of the UK’s economic recovery from the coronavirus crisis has slowed considerably and is far below what experts had hoped for, new figures show today. | The pace of the UK’s economic recovery from the coronavirus crisis has slowed considerably and is far below what experts had hoped for, new figures show today. |
Gross National Product (GDP) was up by 2.1% during August, according to data from the Office for National Statistics (ONS). | Gross National Product (GDP) was up by 2.1% during August, according to data from the Office for National Statistics (ONS). |
It was the fourth consecutive month of growth, after the economy took a serious hit during the depths of the coronavirus lockdown. But it is less than half of what experts had expected, and a major slowdown since July. | It was the fourth consecutive month of growth, after the economy took a serious hit during the depths of the coronavirus lockdown. But it is less than half of what experts had expected, and a major slowdown since July. |
Analysts expected that GDP would increase by 4.6%, according to a consensus taken by Pantheon Macroeconomics. | Analysts expected that GDP would increase by 4.6%, according to a consensus taken by Pantheon Macroeconomics. |
In July, GDP was up by 6.4%, and in June it rose by 9.1%, according to ONS data. | In July, GDP was up by 6.4%, and in June it rose by 9.1%, according to ONS data. |
The government invested hundreds of millions of pounds to get the economy back on its feet in August, including through its ‘Eat Out to Help Out’ scheme which paid for half a restaurant bill during parts of the month. | The government invested hundreds of millions of pounds to get the economy back on its feet in August, including through its ‘Eat Out to Help Out’ scheme which paid for half a restaurant bill during parts of the month. |
It was largely this scheme, and other government initiatives, that encouraged growth across the month, said Suren Thiru, head of economics at the British Chamber of Commerce. | It was largely this scheme, and other government initiatives, that encouraged growth across the month, said Suren Thiru, head of economics at the British Chamber of Commerce. |
The accommodation and food service sectors contributed 1.25 percentage points of August’s growth in GDP. Thiru said: | The accommodation and food service sectors contributed 1.25 percentage points of August’s growth in GDP. Thiru said: |
It is now vital that the government is ready to help companies through what will prove to be a “difficult winter,” Thiru added. | It is now vital that the government is ready to help companies through what will prove to be a “difficult winter,” Thiru added. |
The data shows that GDP rose by 8% in the three months to the end of August, marking a major turnaround from the depths of lockdown after GDP dropped a record 19.5% in April. | The data shows that GDP rose by 8% in the three months to the end of August, marking a major turnaround from the depths of lockdown after GDP dropped a record 19.5% in April. |
However, the measure is still 9.2% below where it was in February this year. | However, the measure is still 9.2% below where it was in February this year. |
ONS deputy national statistician for economic statistics Jonathan Athow said: | ONS deputy national statistician for economic statistics Jonathan Athow said: |
You can follow rolling coverage of the latest economic and financial news after the release of the UK growth figures over on our business live blog: | You can follow rolling coverage of the latest economic and financial news after the release of the UK growth figures over on our business live blog: |
Morning everyone, this is Jessica Murray, I’ll be running the live blog today. | Morning everyone, this is Jessica Murray, I’ll be running the live blog today. |
The government is coming under increasing criticism for its failure to consult with local leaders over extra coronavirus restrictions. | The government is coming under increasing criticism for its failure to consult with local leaders over extra coronavirus restrictions. |
Writing in the Telegraph today, Labour leader Keir Starmer said: | Writing in the Telegraph today, Labour leader Keir Starmer said: |
Chancellor Rishi Sunak will today announce further support for jobs and businesses that are affected by coronavirus shutdowns amid calls to help the hardest hit industries and regions. | Chancellor Rishi Sunak will today announce further support for jobs and businesses that are affected by coronavirus shutdowns amid calls to help the hardest hit industries and regions. |
Sunak will detail “the next stage” of the Jobs Support Scheme on Friday, ahead of new restrictions expected for the hospitality sector. | Sunak will detail “the next stage” of the Jobs Support Scheme on Friday, ahead of new restrictions expected for the hospitality sector. |
Cities in northern England and other areas suffering a surge in Covid-19 cases may have pubs and restaurants temporarily closed to combat the spread of the virus. | Cities in northern England and other areas suffering a surge in Covid-19 cases may have pubs and restaurants temporarily closed to combat the spread of the virus. |
Regional leaders and unions have been calling for fresh financial support to prevent further layoffs when new restrictions are imposed. | Regional leaders and unions have been calling for fresh financial support to prevent further layoffs when new restrictions are imposed. |
This morning Andy Burnham, mayor of Greater Manchester, said that “without an extension to the main furlough scheme, the damage to the economy of the North will be deep and lasting”. | This morning Andy Burnham, mayor of Greater Manchester, said that “without an extension to the main furlough scheme, the damage to the economy of the North will be deep and lasting”. |