LONDON (UK) – Extending Britain’s program will leave some workers trapped in the false hope that they can return to their jobs after a covid disaster is over, British Finance Minister Rishi Sunak said on Friday.
With the rise of redundancies, opposition politicians and think tanks have said Sunak should expand the last Coronavirus Jobo Scheme – due to expire at the end of October – until the economy is strong enough to support more vulnerable workers.
Sunak said there was no doubt that the plan would be fully developed and was supported by England’s Deputy Governor Andrew Bailey on Thursday.
“It is not good to keep people trapped in false hope and pretend there is a job they can get back to,” Sunak told Radio Scotland.
He said the government had taken steps to provide people with new opportunities, including job training and training at a time when it said “it would be a difficult time”.
Last week the National Institute of Economic and Social Research, a major think tank, said closing the scheme immediately would be a “mistake” that would create more jobs.
Expanding the program will lead to a reduction in the number of jobs, NiesR said.
The BoE said an estimated 7.6 million workers had benefited from the job program, and that 4 million had now returned to work, and another 3.6 million are still searching job.
Governor Bailey said on Thursday some sectors of the economy would be out of business in the wake of the outbreak – hospitality and leisure activities appear to be at high risk.
Big British companies have announced tens of thousands of red items. Bailey said Thursday that speculation of central banks with a 7.5 percent unemployment rate this year would be “the worst news” for British society, and warned it could be even worse.
Sunak told Times Radio that Britain was unable to advance the level of borrowing it had already done to finance the economy and warned of impending difficult decisions.
“The right thing to do is to be true and decisive in responding and trying to protect our economic potential as much as possible. We can borrow this year to do that, ”said Sunak.
“This is not something we can or cannot support.”
Adding furlough will catch people with false hope, said the finance minister.