Long Road Ahead
The U.K is one of the first countries in Europe to pull back their emergency measures it extended to
aid the economy through the pandemic, could this move impact millions of jobs in the long run?
Only recently the chancellor of the Exchequer Rishi Sunak has ended the subsidy program which was
targeted towards helping the restaurant industry. To make matters worse a ban on evicting
residential tenants in rent arrears is soon to come to a complete end at 2020.
The government must consider over the coming months whether to extend or bring to an end other
measures that saw the government to borrow money to businesses or pay a portion of workers
wages. For the time being the government has planned to maintain its decisions on to its deadlines
bringing it the first country to exit out early. Germany however has informed to keep its furlough
scheme extended into next year as the crises escalates. The concerns of Sunak withdrawing soon can
have a detrimental impact on the unemployment rate.
Here are some insight of Sunak key diary dates in the coming months
- September 30: Final loans
o September 30th is the last official agreed date to apply for the corona virus business
interruption loan. The government has forked out more than 50 billion pounds for
businesses and the Covid Corporate Financing Facility hold around a further 17.5
billion pounds of larger companies’ debt. The firms won’t have to pay back the loans
just yet, however the program will come to a halt accepting and further applications.
- October – 15 -16 Brexit
o Since the pandemic became the headline of global news, we need to resurface the
pending post Brexit deal, European Union Leaders will meet to approve a post-brexit
deal with Britain. Any disruptions to meet a deal could cause further turmoil and
cause instability to the markets essentially impacting thousands of businesses.
- October 31
o Furlough program comes to an end, leaving thousands of businesses to come to a
decision and thousands may lose jobs causing wave of unemployment.
- November 4th
o Final date for small companies to apply for a £50,000 bounce back loan.
- December 31
o If the EU and UK haven\'\'t already agreed on a trade deal, it will cause a default deal on
trading with the bloc. At this point businesses will have to struggle with tariffs,
quotas, additional paperwork and disruptions.
- January 12 2021 Last orders
o VAT was dropped to 5% from 20% allowed customers to further spend money and
stimulate the food industry as long as food and drinks were eaten inside. By January
2021 this will come to an end.
- March 31, 2020
o The official deadline for companies to pay the VAT bills that were due between
March and June 2020 to help reduce pressure on cash flow during the early days of
- Stamp duty ends
o The stamp duty allowed buyers to save thousands of pounds with their purchases on
properties, however speculators have warned that bringing back stamp study may
cause a plummet in activity and house prices.