Business & Investment

RUTH SUNDERLAND: I need a budget for my work

RUTH SUNDERLAND: Need a budget for work-Prime Minister Rishi Sunak needs to seize the opportunity and help Britain get back to work

  • There are three stages to financial response to Covid-19: emergency assistance, return to work, and payback time.
  • After a year, we’re still stuck in Stage 1
  • The transition to Stage 2 is difficult, but it cannot be postponed any further.

Boris created a roadmap from the blockade, and now when Rishi Sunak presents his budget this week, we’re looking to see that mirror image for the economy.

There are three stages to financial response to Covid-19: emergency assistance, return to work, and recovery time.

Even now, a year later, I’m still stuck in Stage 1. Some crisis lending schemes have been reduced. There are also signs that some economies that can adapt to the blockade have learned to do so.

Next Stage: Prime Minister Rishi Sunak needs to seize the opportunity and help Britain get back to work

Production of automobile engines almost stopped at the first blockade, but now it is operating at almost 70% capacity.

There are sectors where this is not possible. Non-food retail and hospitality have fallen into a serious freeze, with 4.5 million workers still dependent on furloughs. We are far from a strong enough economy to consider Stage 3 and payback.

The economy is so fragile that the prime minister cannot start a tax hike to confront a debt pile of over £ 2 trillion. The transition to Stage 2 is difficult, but it cannot be postponed any further. Furlough is very expensive and has created a false sense of security. It risks leaving people behind in work that is not feasible without state support.

The prime minister needs to begin the transition to a post-pandemic economy. There you will learn to live and work with Covid-19.

This means focusing on the job. Keep jobs wherever possible, modify them as needed, and create as much as possible. Sunak branded its quasi-budget in the summer, doubling the cash incentives of apprentice companies based on employment plans, 40,000 new trainees, £ 126 million new money, new flexi jobs Measures such as apprenticeship will be taken. scheme. Launched last summer, his “kickstart” scheme was launched to incentivize businesses to offer jobs to businesses aged 16-24, creating 120,000 jobs. It is scheduled to end in December, but may be extended.

Reducing employers’ national premiums or raising the threshold at which they will be paid will be an incentive to hire new staff.

The British Chamber of Commerce has proposed a temporary increase in the employer NIC threshold from £ 8,788 to £ 12,500 for at least 12 months after the furlough ends. Green initiatives such as making batteries for electric vehicles should be promoted more strongly. Users of large electric vans want to use a car made in the UK and are perfect for work. However, there is currently a shortage of battery production to make it a reality.

Raising the corporate tax rate will discourage investment and send a negative signal to foreign investors, which will have a negative impact on employment.

The virus should encourage broader thinking about employment taxes. The current system assumes an old-style model where most people worked in an office, shop, or factory for a fixed amount of time and a formal contract. You need to adapt to the gig economy and working from home.

When WFH becomes the standard, the tax burden will be reduced. Salaries for telecommuting staff tend to decline, and spending on office supply chains such as sandwiches and suits is lower. This needs to be addressed at some stage.

For now, the priorities are work and growth. The UK has the opportunity to advance its recovery, thanks to the speed of vaccine deployment. Rishi needs to seize the opportunity and help Britain get back to work.

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RUTH SUNDERLAND: I need a budget for my work

https://www.dailymail.co.uk/money/comment/article-9309831/RUTH-SUNDERLAND-need-Budget-jobs.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 RUTH SUNDERLAND: I need a budget for my work

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