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Boris Johnson has dashed hopes of additional financial support for businesses after delaying the full opening of the British economy by four weeks due to rising coronavirus cases.
The British Prime Minister said that “now is the time to relax the accelerator” of the unblocking, adding that a prudent approach could “save many thousands of lives by vaccinating millions more”.
He go to “step four” of the government ‘s relaxation plan was delayed due to the rapid spread of the Delta variant of the coronavirus first identified in India. Companies will be asked to keep workers at home wherever possible (forcing a rethink for many companies), while nightclubs will remain closed and the limits of internal socialization will be maintained for another four weeks.
Companies face significant cost returns in July, although many will not be able to reopen or negotiate legally. Employers will need to start contributing 10% to advancement expenses and a proportion of their business rates.
The Johnson administration has spent £ 407 billion in supporting companies during the crisis, but the Federation of Small Businesses has asked ministers to delay the reduction of the employee advance plan, which provides 80% of the salary. usual.
The FSB also urged the government to cancel recovery loans for companies that are still closed and to extend the full reduction in trade rates for retail, hospitality and leisure companies.
“Businesses have spent thousands ordering food and drink, selling tickets and marketing events in preparation for that date, while restaurants and bars have opted to open fully to begin recovering more than a year of lost revenue.” , said Craig Beaumont, head of external affairs at FSB.
But Johnson ruled out any changes to the reduction schedule for the furlough program or the business support program.
“We have always made sure that the furlough scheme would continue until September to take into account the whole dissemination of the roadmap. The chancellor has always been very clear, “he told a Downing Street press conference. “Based on what we can see now in the data, based on the effectiveness of the vaccine, we don’t think we need to change.”
Hotel industry leaders said a one-month delay in reopening the economy would cost the sector £ 3bn in lost sales. UKHospitality, the industry’s trade body, said the new delay in economic reopening would put 300,000 jobs at risk.
Over the next month, the NHS intends to offer two doses of Covid-19 vaccines to two-thirds of England’s adult population, including those over 40. All adults will be offered one before relaxation.
Although Johnson described July 19, when all restrictions should now end, as the “end date,” he did not rule out another delay if the data pointed to the risk of the health service collapsing.
“I am sure we will not need more than four weeks and we will not have to go beyond July 19. It is clear that vaccines work and that the large scale of the launch has made our position incomparably better than in other previous ways. , “He said.
On Monday, 7,742 more cases of coronavirus were reported and three more deaths. The prime minister said intensive care cases were on the rise and Covid-19 infections were growing 64% nationwide week by week.
Some senior ministers expressed dissatisfaction with the delay, while several Conservative MPs were able to rebel against the government and cited the success of the UK’s rapid vaccination program.
The government said in the spring that it would not withdraw the furlough scheme in its entirety until late September.
A senior government figure said this was still generous compared to other countries, including France, where companies now have to pay 25% of the salaries of those who receive state support.
The official added that the government had introduced a £ 2bn scheme specifically for councils to distribute funds to companies in sectors under difficult pressure. Half of that amount had not yet been spent, the official added.
The UK is still considering a partial extension of the rental moratorium this week, which would provide help to the retail and hospitality sectors so that landlords have up to £ 6bn in rent from tenants who have been closed for the pandemic.
The prime minister, however, made some concessions. The limit for wedding attendees will be raised from June 21, both indoors and outdoors, but social distancing will be needed, along with masks and no dance floors.
As part of the government’s goals to reopen London’s West End, the production of Lord Andrew Lloyd Webber Cinderella at Drury Lane is expected to be part of the next series of pilots for mass events, along with others Euro 2020 football matches.
Lloyd Webber has said he will remove the curtain from his program on June 21, despite government restrictions, and he is “Ready to be arrested”. A Whitehall official said: “It’s the only scale production that will work.”
Medical and scientific advisors believe the Delta strain is 40 to 80 percent more transmissible than the previously dominant Alpha variant, first identified in Kent. The new Delta variant grows by 70% on weekdays in the UK.
But new data from Public Health England highlighted the effectiveness of the two vaccines currently used in the UK against the Delta variant. The analysis suggested that the BioNTech / Pfizer vaccine is 96% effective against hospitalization, while the Oxford-AstraZeneca vaccine is 92% effective.
Mary Ramsay, head of PHE immunization, confirmed that the funnels offered “significant protection” from the Delta strain. “It is absolutely vital to get the doses as soon as you are offered, to get maximum protection against all existing and emerging variants,” he said.
Johnson was reprimanded by Sir Lindsay Hoyle, Speaker of the House of Commons, for his failure to announce the changes in parliament first.
“I find it totally unacceptable that, once again, we see Downing Street running over members of parliament,” he said.
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