Pandemic wreaks havoc on British industry

Rishi Sunak is due to unveil the first phase of the recovery plan for the British economy on July 8. REUTERS / John Sibley

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On the eve of the lifting of numerous restrictions related to Covid-19 in the United Kingdom, a study published this Friday, July 3 indicates that the cessation of activities due to the pandemic would do a lot of damage in British industry. According to the professional federation Make UK, more and more companies plan to lay off by the end of the year.

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About 40% of companies in the manufacturing sector plan to lay off part of their employees because of the Covid-19 . They were only 25% expected in May, said the study. Tens of thousands of jobs would be lost, particularly in the airline, automotive and catering industries.

Faced with such a situation, the unions are calling on the government to save jobs with public money. Businesses, for their part, are asking for tax breaks. They also expect a lot from the speech of the Minister of Finance Rishi Sunak which will take place on July 8: he must unveil the first phase of the recovery plan for the British economy which is indeed facing the worst recession in its history.

But according to the Financial Times, if the minister rules out the possibility of a massive tax cut, he will on the other hand have to take measures to save jobs with job aids. 

Prime Minister Boris Johnson already announced this week a 5.5 billion euro investment plan in infrastructure. The British government hopes to turn the economy around and create jobs.

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  • United Kingdom
  • Coronavirus
  • Industry
  • Economic crisis
  • Taxation

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