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The United Kingdom today announced an ambitious economic plan to overcome the challenge of the pandemic this winter and, as a star measure, it has decided that it should
sustain "viable
"
jobs
and
stop subsidizing those "that only exist" through the aid system.
.
This has been made clear by the
Chancellor of the British Treasury, Rishi Sunak
, who, after allocating more than 220,000 million euros to reactivate economic activity in the country, has announced that
the salary burden will be shared with companies
at the same time It extends the time available to them to repay loans provided by the State.
For this, Sunak has announced that
the Government will cover a fifth of each worker's salary
- until now it was 80% - as long as they work a minimum of a third of their normal working day.
The company
, for its part, must
pay the hours worked in
addition to an additional third, so the employee will end up receiving at least 77% of their usual salary.
An example would be that, if a person who normally earns 2,000 euros a month works half his day, he would receive 1,000 euros for the hours, 333 from the State and another 333 extra from his company.
This new system, which
will come into force on November 1 and will remain at least until March 31, 2021
, will be available to SMEs and to those large companies that prove to be experiencing great difficulties due to the pandemic.
On October 31, therefore, the previous robust model that
had allowed the survival of 10 million jobs
in temporary layoffs and in exchange for a minimum wage of 80% will end.
Despite the fact that this opens an uncertain scenario for all those people who are still unable to resume their activity normally, Sunak has assured that the "evolution" in the Government's approach is necessary because
jobs that no longer exist are being sustained
.
"It is not good to keep people in jobs that only exist because of the temporary dismissal system," said the chancellor.
Extension of the term to repay loans
Therefore, and aware that it is putting a lot of pressure on companies, it
has
also
decided to extend the term to repay state loans from six to ten years
, and even allows the possibility of
paying only the interest generated
.
In addition, and to support some of the sectors most affected by the pandemic,
the British Treasury will maintain the VAT for hotels and tourism at 5%
until March 31, 2021, a measure that already came into force last July.
"The system of temporary layoffs was adequate for the time it was established, but, while the economy is starting again, it is not good to keep those jobs that only exist through that system.
We need to create new opportunities and allow the economy that advances,
and that means supporting people who are in viable jobs and that generate genuine security, "added Sunak, who assures that the coronavirus has become" one more element of our lives. "
According to the criteria of The Trust Project
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