Details of New UK Stimulus
The newest stimulus from the UK will be worth an impressive £4.6 billion ($6 billion). This financial aid package will be focused specifically on the businesses and industries that have been affected the most by the lockdowns and the pandemic in general. The types of companies provided with aid will be those within the retail, hospitality, and leisure industry.
This relief will come in the form of a one-time $12,200 grant that will be directly given to the businesses. This money should help with immediate costs and losses for business owners. The UK has also confirmed the extension of the current furlough scheme, which is also intended to enable paychecks for many employees who cannot work. The furlough scheme will now last into the spring instead of expiring. Additionally, the UK has also put aside $806 million of the $6 billion which is reserved specifically for other businesses that are struggling outside of the aforementioned 3 fields most heavily impacted.
In a statement released with the announcement of this new financial aid package, Chancellor Rishi Sunak said, “Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring. This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”
Future Implications and Final Conclusions
This new stimulus package will enable the United Kingdom to continue to push stringent lockdowns until the vaccination process begins to have significant effects on the fight against COVID-19 without seriously impacting the many businesses that are currently abiding by these restrictions. Without serious support from the government, many businesses, especially small businesses, would not be able to make it through the lockdowns without closing their doors for good.
The current vaccination process is well underway, providing hope that the end is in sight for these sorts of restrictions. However, with many nations and areas still having a difficult time keeping hospitalizations at a manageable level, these restrictions may still be necessary in particularly hard-hit areas until the numbers begin to subside. This new stimulus package should hopefully carry these businesses until reopenings once again sweep the UK.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.