Sunak goes all out to avert economic collapse

British finance minister Rishi Sunak launched a gigantic stimulus package to stabilise Britain’s virus-hit economy on Friday, including the government paying the wages of workers up and down the country.

Here’s what he said at a news conference with Prime Minister Boris Johnson:

UNPRECEDENTED MEASURES

“The economic intervention that I am announcing today is unprecedented in the history of the British state.”

PM JOHNSON ON CLOSING PUBS, RESTAURANTS

“We’re also telling nightclubs, theatres, cinemas, gyms and leisure centres to close on the same timescale. These are places where people come together... The sad thing is today, for now, at least physically, we need to keep people apart.”

SUNAK ON PAYING WAGES

“Today I can announce that for the first time in our history the government is going to step in and pay people’s wages.”

TAX HOLIDAY FOR BUSINESSES

“I’m also announcing today further cash flow support through the tax system. To help businesses pay people and keep them in work I’m deferring the next quarter of VAT payments, that means no business will pay any VAT from now until the end of June and you’ll have until the end of the financial year to repay those bills.”

HARDSHIP AHEAD

“The truth is we are already seeing job losses and there may be more to come. I cannot promise you that no-one will face hardhship in the weeks ahead.”

30 BILLION POUNDS OF DIRECT SUPPORT TO BUSINESSES

“That is a direct injection of over 30 billion pounds of cash to businesses, equivalent to 1.5% of GDP.”

STRENGTHENING SAFETY NET

“To strengthen the safety net, I’m increasing today the universal credit standard allowance for the next 12 months by 1,000 pounds a year. For the next 12 months, I’m increasing the working tax credit basic element by the same amount as well. Together the measures will benefit over 4 million of our most vulnerable households.

“I’m strengthening the safety net for self-employed people too, by suspending the minimum income floor for everyone affected by the economic impact of coronavirus.

“That means self-employed people can now access in full universal credit at a rate equivalent to statutory sick pay for employees.”