UK unveils back-to-work bonus scheme and restaurant discounts for all citizens

U.K. Finance Minister Rishi Sunak has announced a back-to-work bonus scheme for businesses bringing furloughed employees back to work, and a 50% restaurant discount for all citizens through the month of August.

In a de-facto “mini-budget” unveiled Wednesday, Sunak told the House of Commons that the jobs retention scheme, which has subsidized wages for 9.3 million furloughed workers, will be tapered down to end in October. Businesses will receive £1,000 bonuses per furloughed worker retained through January earning at least £520 per month.

Ahead of Wednesday’s update, economists had warned that ending the furlough scheme in October would give rise to a much-feared unemployment crisis. However, Sunak claimed the scheme “can’t and shouldn’t go on forever” and labeled calls for a further extension to the furlough scheme “irresponsible.”

“We have to be honest. Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before, and the longer people are on furlough, the more likely it is their skills could fade and they will find it harder to get new opportunities,” Sunak argued.

Sunak also unveiled the unprecedented move of a 50% discount for citizens to eat out from Monday to Wednesday through the month of August, in a bid to get the hospitality industry back up and running following months of lockdowns. The discount will max out at £10 per person and businesses will be able to claim it back from the government.

VAT (a value-added sales tax) for the hospitality and tourism sectors was also cut from 20% to 5% until January, costing the Treasury £4 billion.

Article source: https://www.cnbc.com/2020/07/08/uk-unveils-back-to-work-bonus-scheme-and-restaurant-discounts.html