Rishi Sunak has bridged the economic gap. But what comes next?

Yesterday’s measures from the Chancellor were necessary. His timely assistance focused on a new targeted and temporary job support scheme to replace the expiring furlough, easing loan repayment terms for firms and a wider, more flexible VAT regime.

One needs to examine the details of these to ensure that they are as comprehensive as they should be. Lest we forget, the Treasury Select Committee highlighted large groups were excluded from help previously. But there was a boldness to the announcements that goes some way to answer those who wanted the Furlough Scheme extended.

The Chancellor addressed the immediate need to bridge the gap between the ending of existing support and the hoped for return to normal of the economy next spring. But, both yesterday and in cancelling the Budget, he has avoided addressing the issue of affordability.

Understandably, there is always going to be an element of catch-up in much of the policy stance during a pandemic, with the Chancellor responding often to the latest actions or events that have hit the economy hard.