UK finance minister, Rishi Sunak, updates parliament on the government's latest spending plans
- Our plan will protect and create jobs
- Job losses are the most urgent challenge we face
- Furlough program cannot, should not go on forever
- Furlough program will wind down flexibly, gradually into October
- Will pay £1,000 bonus per employee that returns from furlough through to January
- Announces "kickstart scheme", £2 billion initially to be made available for this
- The scheme will pay firms to hire young people
The main challenge for the UK will be to try and stop the bleeding in the labour market over the next few months - especially when moving into Q4.
The furlough program will end in October and that's when the real challenge begins. The job retention bonus announced above should help with that, and if employers do maintain the 9 million jobs on furlough, that's a £9 billion scheme right there.
The "kickstart scheme" also helps in that regard, allowing for persons aged 16 to 24 years old to be able to find jobs amid worries that they may be squeezed out due to the labour market crunch that is set to befall the economy later in the year.
