Covid-19 in the United Kingdom: the government releases aid to businesses
British Chancellor of the Exchequer Rishi Sunak, during an update on the evolution of Covid-19, in London on October 12, 2020. Toby Melville / Pool Photo via AP
Text by: RFI Follow
4 min
Great Britain is the country in Europe most bereaved by the coronavirus epidemic with 44,000 dead.
This Thursday, October 22, the Chancellor of the Exchequer, Rishi Sunak, presented new aid for businesses to the British Parliament.
A series of measures supposed to avoid bankruptcy.
Publicity
Read more
With
Agnieszka Kumor,
from the Economics department of RFI and our special
correspondent in Liverpool,
Muriel Delcroix
After several days of criticism accusing the British government of not helping disadvantaged regions enough, the Conservatives have resolved to step up aid to companies hardest hit by restrictions imposed to fight the virus.
From now on, the British executive is opening the system to establishments located in high alert zones and is targeting pubs and restaurants as a priority, such as in London and Birmingham.
Until now, only establishments located in a very high alert zone could benefit from government aid.
Partial unemployment and public debt
A new partial unemployment mechanism will replace the current system for six months.
The main measure of this plan provides that companies contribute only 5% to the payment of hours not worked.
In addition, the eligibility conditions for this aid have been relaxed.
A major effort for the government which reminds us that all these measures are very costly.
British public debt currently stands at 103.5% of GDP.
The highest ratio since the 1960s.
Sense of injustice in the North
However, will these new measures be enough to relieve the regions hard hit by the epidemic?
After a
highly publicized showdown
, Manchester finally forced its way into the coronavirus maximum alert zone on Friday 23 October.
Its mayor Andy Burnham, who led the sling against the central power, has lost its fight and its region joins its neighbors to the North West like Lancashire and Liverpool already in very high level for more than a week.
But these very severe restrictions arouse much criticism and a feeling of injustice on the part of traders who denounce a difference in treatment between the North and the South.
In Liverpool, residents do not recognize their city, where the streets are deserted and many shops do not raise their iron curtain.
"
I am so sorry for all these traders who do everything they can but who no longer have customers, it's sad
", laments a mother accompanied by her city, who adds: "
I have never seen the city so quiet, it's really worrying…
”
"A
lot of inconsistency
"
The very localized management chosen by the government of Boris Johnson to stem the resurgence of the virus is generating strong tensions between London and local communities.
Especially in the north of the country where a large proportion of the population is disadvantaged.
“
To me, a lot of these restrictions don't make sense,”
says a young woman.
There is a lot of inconsistency, conflicting messages.
The government communicates very poorly and could have handled the situation better.
"
Do the northern regions feel left out?
“
We are used to being treated less well!
answers a resident.
London is the center of the universe.
For many, there is no intelligent life outside of London!
And then this city will never vote Conservative and they know it, so Liverpool, they don't care.
"
With hospitals now treating more infected patients than in the first wave, Liverpool recognizes that action had to be taken but would have preferred a true national confinement of 2 or 3 weeks and suspects the government of having imposed local restrictions with compensation less costly financials.
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To listen: United Kingdom: in Liverpool, new measures against the second wave of Covid-19
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