The UK chancellor, Rishi Sunak, has warned of tax rises in the country if interest rates increase. With the current crisis causing the government’s borrowing to reach massive levels, there is now genuine fear that rising interest rates could cause major problems.
What Did Sunak Say?
The Organisation for Economic Co-operation and Development (OECD) recently released its latest prediction for how different economies around the world will recover from the current crisis. Among the bad news is the fact the UK is behind only Argentina in terms of the negative effect to be felt.
The Full Details of Their Report
The furlough scheme that started in the UK in March 2020 is to be replaced by a Job Support Scheme (JSS), chancellor Rishi Sunak has announced. This is one of a series of measures that are designed to protect British companies and employers while coronavirus restrictions remain in place.
Details of the New Scheme
The JSS initiative announced by Sunak will directly support the wages of workers who continue to carry out a minimum of a third of their usual working hours. Their companies will pay them for the time that they work.
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
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