The big UK development today, aside from the ongoing health impact of the coronavirus crisis, looks like being chancellor Rishi Sunak announcing financial help for the self employed.
At least two million workers facing hardship are set to be offered a package of support from the government that could give them a similar 80% earning subsidy that was unveiled last week for staff kept on by employers.
Boris Johnson says he wants similar protection for freelancers. Sunak is expected to offer the self-employed payments equivalent to 80% of their earnings over the past three years up to £30k
Sunak said the government would cover wages of up to £2,500 a month for staff being kept on, given leave of absence (furloughed) by their bosses.
The Royal Society of Arts reckons a temporary basic income of £1,500 initially to help manage icash-flow, followed by a weekly payment of £100 per week for three months would be a better solution.
It says: For people earning £17,000 – the average earnings for a self-employed person, according to the ONS – they would be better off under the scheme.
“This would therefore cover people in vulnerable roles like Deliveroo riders and Uber drivers. For people earning more than £17,000, the benefits of this proposal compared to the government programme would taper off progressively.” Fair point…
Incredibly complicated
The chancellor says coming up with a way to help self-employed people was “incredibly complicated”.
Shadow chancellor John McDonnell wants measures that can be delivered quickly.
“Many self-employed people have been hit hard in the pocket by the coronavirus crisis and have been calling for proper protection of their incomes by the government …
“After days of delay and uncertainty the government must announce a package today that can be delivered quickly, giving the self-employed the same level of security as other workers.
Financial shocks
In other financial news, US stocks have fallen by as much in one month as much in one month as they did in first year of the financial crisis, an S&P Dow Jones study shows.
Meanwhile, the European Central Bank is planning to buy back at least £750bn bonds in an attempt to offset the financial fallout.
Christine Lagarde, ECB president, Tweeted: “There are no limits to our commitment to the euro.”
