Rishi Sunak’s wartime economy

At least no one can say it isn’t bold. The United States is fiddling around with some possible cuts to payroll taxes. Most of Europe is stuck with some printed money from the ECB. But the UK is embarking on one of the most radical experiments in modern economic theory, and one that will no doubt be studied for decades to come. With his latest announcement today, a whole 48 hours after his last intervention, the Chancellor Rishi Sunak has effectively turned the UK into a wartime economy.

The Chancellor is offering a deferral of VAT for companies, a tax break for the self-employed, and most importantly of all he is saying the government will pay up to 80 per cent of the salaries of any staff who can’t work but are kept on the books during this crisis.