Assumptions made about the UK’s Covid-19 support packages are starting to unravel. When the Chancellor announced unprecedented spending to tackle the virus, he aimed to keep people in their jobs and mitigate an inevitable economic crash. But unemployment is soaring and the economy is contracting at a rapid pace, with growth figures set to plummet further than they did during the financial crash, and possibly even below that of the Great Depression. Despite the government’s measures, the economic effects are being acutely felt – and the Treasury’s coronavirus policies may have spurred on some unwanted activity of another sort.
Today’s analysis from the Resolution Foundation and British Chambers of Commerce finds that the centrepiece of the Chancellor’s virus package – the Job Retention Scheme, which allows firms to be reimbursed by the government for up to 80 per cent of their employees’ salaries – may cost three times more than initial estimates predicted.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in