There is evidence that scheme under which Berlin tops up wages of those put on short-time working is effective
It all looked so different for Rishi Sunak three weeks ago. After a bleak early spring in which the economy was sacrificed for health reasons, there were signs that the worst might be over.
Related: Germany’s furlough scheme saves firms from freefall
Continue reading...Error and fraud rate for scheme estimated at between 5% and 10%, says HMRC chief
The government believes it may have paid out up to £3.5bn in wrong or fraudulent claims for the furlough scheme.
Jim Harra, the top civil servant at HM Revenue & Customs, said that his staff had calculated for the possibility that as much as 10% of the money might have gone to the wrong places.
Continue reading...UK should adopt German-style wage support for short-time working, unions say
Rishi Sunak has been urged by union leaders to launch a wage subsidy scheme to prevent a “tsunami” of unemployment when furlough comes to an end this autumn.
Demanding the chancellor follows the examples of other leading European countries to avert a looming jobs crisis, the Trades Union Congress said a continental-style system of “short-time working” wage support could be used in Britain to save millions of jobs from redundancy.
Continue reading...GDP falls 20.4% – the worst of any G7 nation in the three months to June
Britain has entered the deepest recession since records began as official figures on Wednesday showed the economy shrank by more than any other major nation during the coronavirus outbreak in the three months to June.
The Office for National Statistics (ONS) said gross domestic product (GDP), the broadest measure of economic prosperity, fell in the second quarter by 20.4% compared with the previous three months – the biggest quarterly decline since comparable records began in 1955.
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