UK Chancellor Rishi Sunak is expected to announce an extension to the government's coronavirus-related furlough scheme until the end of September during his spring budget statement later on Wednesday, according to domestic media reports
MOSCOW (Pakistan Point News / Sputnik - 03rd March, 2021) UK Chancellor Rishi Sunak is expected to announce an extension to the government's coronavirus-related furlough scheme until the end of September during his spring budget statement later on Wednesday, according to domestic media reports.
Sunak has previously said that he would "do whatever it took" to protect jobs and businesses throughout the coronavirus disease pandemic. The Sky news broadcaster reports that the chancellor looks set to prolong the initiative, which sees the government pay employees a maximum of 80 percent of their wages, up to 2,500 Pounds ($3,491) per month, for hours not worked due to the pandemic.
The UK government launched the Coronavirus Job Retention Scheme one year ago during the first COVID-19 wave. The initiative was set to expire this coming April.
Sunak is also expected to announce further government spending to aid the UK's economic recovery, although the broadcaster said that the chancellor may announce new tax rises that will be needed to fund the plan.
The UK economy has been severely hit by the COVID-19 pandemic and the country's GDP contracted 9.9 percent in 2020, the biggest fall since modern records began.
The chancellor is set to deliver his budget statement to the House of Commons at approximately 12:30 GMT on Wednesday.
