Since the start of the coronavirus pandemic, the Government has said it will do whatever it takes to protect people and businesses from the economic threat post by the coronavirus. True to its word, the UK Government has supported the income of close to 400,000 people in Wales through its Coronavirus Job Retention Scheme (i.e. Furlough Scheme) and Self Employment Income Support Scheme.
Today, the Chancellor Rishi Sunak set out the second phase of the Government’s response to the coronavirus pandemic, outlining the Government's proposed measures to stimulate the economy and support those hard-hit sectors upon which many jobs depend.
As part of this, employers will be encouraged to retain staff who have been on the furlough scheme, with the Government paying a one-off bonus of £1,000 for every employee who was furloughed and who is kept on until January.
He also unveiled a new Kickstart Scheme, which will create hundreds of thousands of new, fully-subsidised jobs for young people.
In a major boost to the Welsh tourism and hospitality sectors, the Chancellor announced a temporary cut in VAT, providing a much-needed boost to those businesses hardest hit by coronavirus. Moreover, the Chancellor announced a new Eat Out to Help Out Scheme, giving people up to 50 per cent off meals out at restaurants, pubs and cafes on Mondays, Tuesdays and Wednesdays in August.
The Chancellor’s Summer Economic Update, along with the New Deal for Britain announced by the Prime Minister last week, will benefit people and businesses across Wales. This includes an additional £500 million of Covid-19 funding for the Welsh Government through the Barnett Formula. The UK Government is now providing £2.8 billion through the Barnett Formula to help the Welsh Government support individuals, businesses and public services through Covid-19.
Commenting on the Chancellor's Statement, Tomos Dafydd Davies said:
I'm pleased to see the Chancellor and UK Government building on its unprecedented job retention support schemes to protect jobs and businesses in Wales and across the UK during the crisis.
The Chancellor has unveiled an ambitious package of support measures which pave the way for the Welsh economy to rebound and recover."
