Chancellor Rishi Sunak this week announced another huge investment to help deal with the coronavirus crisis. £55 billion will be pumped into the economy to try and tackle the UK’s biggest financial slump in more than three centuries, yet he has pointed out that this is just the start of the current crisis.
The Full Extent of the Borrowing
Advances in the search for a Covid vaccine and increased clarity over the US election results have helped to push many financial markets into positive numbers, although current studies show that business confidence has plunged in some European countries.
Details of the Market Situation
Chancellor Rishi Sunak will carry out a UK spending review next week, and analysts fear that it will continue bleak data. Indeed, the government’s spending plans could be seriously hampered right up until the next election, in 2024.
Further Details
As the country battles to get through the second wave of coronavirus infections, new data suggests that the restrictions currently in place are proving to be less damaging to the economy than the spring lockdown.
The Early Signs
A range of different indicators show us that economic activity has been less badly affected than during the earlier lockdown. These include the number of people going to work and the volume of heavy goods traffic around the country.
The hopes that a coronavirus vaccine will be available by the end of 2020 has led to the financial markets receiving a boost that led to rising share prices. Yet, the latest employment news is less promising, with a dramatic fall in the number of people in work.
The Employment Details
This information comes from the Office for National Statistics (ONS), who report that the number of people in employment dropped by 247,000 in the period from July to September when compared to the same months last year.
The return to lockdown restrictions in the UK has led to fresh predictions of the amount of economic damage being made. What do the Bank of England (BoE) experts think about it and how is the furlough scheme going to be extended to help people cope?
What Does the BoE Think?
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