What did Rishi mean when he said they can't protect all households?

[TopBitchoftheWitches]

Doesn't sound good imo.

Sorry @Itsjustmee, we cross posted

@missyB1 not at all. It’s not about individuals it’s about businesses. Keeping employees in work, paying taxes, supporting the economy. No judgement or bitterness intended. Individual workers are not the issue here there is a much bigger picture.

What I don't understand and I can't talk about in real life is why all the food and leisure small businesses got £10,000. Why did they?

So long as the "people with savings" realise that in the case of a recession/depression, inflation may just take off big time, and that money carefully squirrelled away becomes pretty worthless too.

How much did much lower demand result in furloughed workers rather than safety?

MyDaughter since this happened at your work did the owners see a drop off in demand or did they send you home too fast to know?

I don't understand why people are so shocked, seriously. Sunak has said this repeatedly. How can you expect that everything will be rosy afterwards? The government needs to urgently ramp up testing as in all countries where the situation is better managed, this is the answer.

Other countries have introduced various forms of universal citizen’s payment for the duration of the crisis.

I think the US is given $1200 & they don't have a benefit system or health service like us.

Thanks for all the replies, I'm worried about my children and my home, it helps to talk about it.

When they announced the financial help I already thought blinking heck that is a huge amount.

I’m also interested in what will happen with business interruption loan defaults since they removed securing with asset / house (which of course stopped nearly everyone taking one).

But virtually all of our friends when we have said this to them they are really shocked and reply with but the government will have to pay otherwise people will be homeless starve die.

Those of us who are disabled and on UC/legacy benefits have been doing this for years under Tory austerity

Other countries have introduced various forms of universal citizen’s payment for the duration of the crisis. Why can’t we do that?

Anyone who thought the most right wing incarnation of the Tory Party for decades, who brought in UC is going to implement such a socialist policy as UBI is deluded.

Well those of you who are currently furloughed it wont be long till the narrative shifts and you might get painted as the reason Britain is 'failing' after the CV19 pandemic or Brexit.

What I don't understand and I can't talk about in real life is why all the food and leisure small businesses got £10,000. Why did they? Given what the family run pubs, cafes etc are doing round here I bloody hope they did! Not only have they changed how they work, hired drivers and completely changed their working practices, remodelling kitchens etc, they are running all sorts of deliveries out to the vulnerable, not just their own products.

They are absolutely essential to us out here in the rural West!

I think definitely some business could have stayed open and helped their staff social distance.

That’s as may be but I think they were also probably scared. Imagine the fall out if the virus did happen to spread round the workplace and someone was hospitalised or died. They’d be accused of killing their staff for non essential work. Amazon got a load of flack for still operating the warehouse (although I don’t doubt they probably were putting staff at risk). Delivery drivers are chastising people for ordering non essentials and putting them at risk. There’s a lot of the British public who think we shouldn’t even be going out for exercise even, most people support the lockdown.

How much did much lower demand result in furloughed workers rather than safety?

From my experience, a lot! Our village fish & chip shop and our pie shop closed because they were dead in the few days leading up to the actual lockdown. They both closed over the weekend before the lockdown on the Monday! Other takeaways in our village have stayed open throughout.

Same with garages. We have 2 car repair garages in the village. One closed on day 1, the other is still open and busy.

When restrictions are lifted, I think furlough and sole trader support will be severely limited to those who cannot work, i.e. the shielding or otherwise at high risk - i.e. the people who are being told to stay indoors and isolated for 12 weeks. That 12 week will be continued indefinitely until a vaccine appears, so they'll be the ones who need ongoing income support (furlough or sole trader business support) for the longer term. Support for everyone else will stop and they'll be expected to return to work, or face redundancy etc.

I think VAT will increase, I think the Corporation Tax will increase, we have already been warned that the self employed will see a change to calculations, as was warned when the SE package was announced.

Personally I welcome this as many people have been supported and had worries alleviated. When it is possible to do so businesses should have taken the time they were granted by this support to make assessments and try to move forward.

@OctopusArm are you sure you're not getting confused with the business grant? Also, it's not just food and leisure, it app,it's to all businesses.

Also once we have a vaccine & the threat has gone people may have changed their behaviour eg more remote working which reduces house demand in certain areas, less travel, less grabbing a sandwich from the deli for lunch. Some might want more savings for the next rainy day, some may be cautious about mixing for big events etc

User interesting. I think many non essential companies faced an immediate drop in demand. Not just those that were ordered to close initially (pubs etc).

Companies furloughed staff because they had a cash shortage looming. Or already happening.

We have done our bit to keep the pressure off the NHS. Now we need to get back to work and the press needs to stop scare mongering and disseminate the true statistical risk of catching covid badly which is miniscule for the majority of the working population and a risk that can be mitigated. The risk of dying for the working population is infinitesimal.

Illnesses and deaths have happened throughout time and this is nothing compared to: The Plague, Smallpox, Diptheria, Typhoid, etc.

I think VAT will increase, I think the Corporation Tax will increase

ALL taxes will increase by a small amount. Everyone will end up having to pay more to pay back the debts being racked up to pay for it PLUS the extra spending the public will demand for the NHS.

So, income tax, NIC, fuel and alcohol duties- the lot really.

I also think there'll be NIC extended to other forms of income, such as dividends, occupational pensions, property income, etc. For far too long, NIC has only been paid by "workers", who've also been stung for loads of other taxes, such as student loan repayment, workplace pension deductions, child benefit clawback etc. Workers can't bear the brunt of the inevitable tax rises. People with healthy incomes from other sources have broad enough shoulders to start paying more into the pot.

I think the forecast of 2m unemployed is a massive under estimate.

The 1920 depression unemployment rate was 10% and continued until the 2nd WW, the First WW didn't shut down the economy like CV-19 has around the entire globe.

I don't understand this talk of a "bounce back" many folk will have no money, will have massive debt and many of those on furlough will be living from hand to mouth, eating into whatever savings they might have.

Thanks itsjustmee. On my own behalf I can say a small 'phew'. I've lost around 70% of my income over the next couple of months, so the help will be welcome.

peapod yes that was my point. The brand reputation would be damaged too much. So it was better to close.

And also it would be hard if your employees were like your family too.

JustAnotherPoster00
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But virtually all of our friends when we have said this to them they are really shocked and reply with but the government will have to pay otherwise people will be homeless starve die.**

Those of us who are disabled and on UC/legacy benefits have been doing this for years under Tory austerity

That’s what I mean they seemed to have no understanding that this could very easily happen to them . And that the goverment wasn’t like mum and dad and going to bail them out

Why it's so large for every business?

We have received £10,000 from our council already and it's a huge amount compared to what we actually would take and we can alter the way we run and do deliveries so can still continue to make money that way. It just feels like a lot if we are only going to be closed for a few months.

@BeyondMyWits I disagree with that, I think people with savings are breathing a sigh of relief at this minute in time. Their rent/mortgage and bills can be paid.