TAX cuts and wage boosts for struggling workers are set to be revealed today.
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Cuts to employers’ national insurance and the basic rate of income tax and a plan to subsidise people’s wages are being considered by the Treasury, according to The Times.
The new rules could effectively underwrite 60 per cent of workers’ wages if they go ahead.
Other proposals being considered are a “reverse PAYE” system whereby the government pays vulnerable companies’ wages for the next four weeks to stop them laying off workers.
Chancellor Rishi Sunak is set to reveal the package for workers this evening in a press conference with Boris Johnson.
The Treasury has ruled out introducing a universal basic income – something Mr Johnson had said earlier this week that he would consider.
He said: “I want businesses to stick by employees as we’re going to stick by them.
“Everyone said in 2008 we bailed out the banks and didn’t look after you this time will be different.
“We’re going to really make sure to look after the people who suffer economic consequences of what were asking them, we’re going to look after the people first.”
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Up to 800,000 in the UK business goes go bust due to the virus.
While 170,000 self employed who work in the film industry have lost their jobs after productions have been shut down due to the virus.
Last week new measures to help pay workers from day one of sick leave instead of four were announced by the government.
During the Budget the Chancellor said that self-employed would be able to claim benefits if they found themselves unable to work.
But industry experts slammed the measures as not going far enough, while MPs demanded wages for those who are losing out are paid.
It follows a similar call from the new Bank of England governor.
Andrew Bailey told worried bosses to “talk to us” about emergency funding before panicking and firing workers.
He said “everything was on the table” to prevent more than a million job losses and save the economy.