On March 20th, the third stimulus plan for the UK was unveiled. As illustrated below, the package includes a variety of measures and programs which target different populations, such as employees in firms, the self-employed, low income households, renters, and business. This piece by the BBC explains how the plan will work in practice. For a video of the announcement, refer to this piece. Some observers consider this an unprecedented plan, especially since a Conservative government is in power. For instance, the BBC noted “The government has announced the biggest intervention in private sector business since the Second World War to help fight the economic impact of coronavirus.” Below I outline the main items: -- Employees’ Wages & Firms: For the next three months, the government will pay all companies up to 80% of an employee's wage—up to £2500 a month—on the condition the worker is not fired. This will be done through 12 month interest-free loans (the government will subsidize 80% of these loans). -- Support for the Self-Employed: Self-employed workers to get the equivalent of statutory sick pay. Yet, many have argued that this measures is still vague. -- Support for Renters: 1 billion pounds of support for renters. -- Welfare: Welfare payments for about 4 million low income households will be boosted (7 billion ponds). -- VAT Tax Holiday: Tax payments for business have been deferred for the next quarter. -- Business Loans: Unlimited 12-month, interest-free loans for businesses.
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Mariely Lopez-Santana is a Political Scientist and an Associate Prof. at the Schar School of Policy and Government at George Mason University. In the last two decades she has spent much time studying, teaching, and writing about employment policy. She is working on a book project on state intervention and municipal distress. Categories
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