How will the UK recover from this?

[carrottopper]

I'm no expert on the economy etc but how will we recover from the cost of corona virus? How will we recover the 80% pay that is being given? Will everything increase in price? Seems unfair for those who remain as key workers on the same pay like myself and those who cannot claim the 80%

So you want to be paid 80% of your salary instead of 100%?

I think there will be a very big recession/ depression and more austerity. But luckily the UK has the ability to temporarily prop up the economy hopefully lessening the impact of what would have happened otherwise.

The money is being borrowed by the Government, so will need to be paid back, by tax rises and/or cuts to spending.

As interest rates have been reduced to very low levels, it is fortunate that it isn't costing very much to borrow the money. However, it is costing an enormous amount of money, so will take a long time to pay back, especially as tax receipts are likely to be down due to businesses going bust and people losing their jobs.

We won’t be alone. It will be a global issue. We will get through it but we’ll need to campaign hard to ensure the weight of this financial burden doesn’t fall disproportionately on the more vulnerable members of society.

There is no fair way of doing any of it. We just have to do a bit more lockdown then start picking up the pieces when the danger has receded.

I can’t get too worked up about the economic outlook until we’ve sorted out both the testing situation and the issue of counting fatalities accurately.

I got eye rolled by the economics grad in the family last night for saying this, but I just feel quite strongly that lives matter more than pounds ATM. Maybe lockdown is making me irrational.

I just feel quite strongly that lives matter more than pounds ATM

But recession/economic depressions also cost lives because suicides increase, as does homelessness, which has a disproportionately high risk of death due to illness and attack. It's not just about money, there's a human cost too.

I know. You’re right Barbara.

I think it’s the way it keeps being phrased as a need to “balance” health against economic concerns. It just feels so cold-blooded. Like a simple equation.

I don’t think I’m my normal self really. I probably richly deserved the eye rolling.

Lots of things will change to pay for it.

Tax rises for everyone.
Spending cuts in some areas, rises in others.

But I think a big change will be a push to kick start our manufacturing industry for two reasons. First, so we're not as reliant on imports and secondly, to give jobs to the newly unemployed because of Covid.

It's why HS2 is going ahead - despite the cost, we need jobs for people and it's a massive job creation scheme that will employ thousands of people for years to come.

To kick start manufacturing, there'll be construction jobs initially and then lots of low-medium skilled jobs in the factories themselves and also in the supply and distribution chains when they open.

The whole economy will move away from imports and the service industry back towards manufacturing, farming, etc.

It will take time but we will cover from this it will just take quite a few years , I think people’s spending habits will change and try to save more where they can and not just pop to the pub or have a takeaway each week. I am saving loads at the moment with no petrol use, kids clubs , random shopping trips and putting it all in an emergency account so I am never in a position again to worry about money. I could not believe it on the local news last night farmers have chartered there own planes to bring in workers from other countries to come and pick the crops when they could use all the unemployed workers here making them keyworkers so they would get childcare etc I have seen no adverts locally for farm workers needed it makes me mad.

Apple I am not sure if the farmers are being entirely honest about this recruitment, we live in an area with lots of farms and there are lots of ‘comments’ about the desperate need for more fruit pickers. My DS is home from uni, a fit, healthy 19 year old who would love to work. He has applied to the three local farms and had one reply saying ‘Get in touch in May’ .... I know that’s only one example but do the farmers really want more workers or not?

Seems unfair for those who remain as key workers on the same pay like myself and those who cannot claim the 80%
Eh? You would rather be paid less? Or you would rather be made redundant? Most people would be glad to be in your position. Being a key worker on full pay is fabulous.

There is also the question of Brexit

I think HS2 will be pulled. If nothing else, the lockdown has proved just how many jobs can really be done from home or one location and how much travel is simply not necessary. Car and plane and train travel will decline perhaps permanently.

I think HS2 will be pulled.

The go ahead to start the next building phase was given earlier this week. It's gone too far to stop now. It may well be reduced in scale, and I think the Northern end (Manchester/Leeds) may well be cancelled, but the LondonBirmingham section is too far gone to cancel.

@Kazzyhoward
Ah, I didn’t realise it had the go-ahead.

I think what the OP was saying is that keyworkers are being paid ft to work ft, and juggle home school etc, others are being paid 80% to sit at home and not work

It is unfair as I am a key worker working more than full time and homeschooling and not getting a chance to stop at all!

For the 20% taken by tax man anyway !

I’m a key worker and am working full time. I’m glad I’m getting my full salary and haven’t had it cut by being furloughed. I am also on holiday this week, as I booked this week off last year, and even though I can’t go away, I still have to take the time I booked - which I find a bit annoying. Surely many key workers still have their annual leave they can use. Though some will have had it cancelled, I’m sure.

My DS is home from uni, a fit, healthy 19 year old who would love to work. He has applied to the three local farms and had one reply saying ‘Get in touch in May’ .... I know that’s only one example but do the farmers really want more workers or not?

That is because crops are individually seasonal. Which fruits would you expect your son to be picking this week for example?

It's gone too far to stop now

That is such appalling reasoning for going ahead with this. HS2 is already massively over budget. It's a vanity project, a Stalinist command economy piece of profligacy at a time when debt is clogging the arteries. There are myriad more effective ways of spending money. Improving the existing rail network for example. How many UK firms are benefiting from the contracts?

Why is it fair that some people are on low salaries?
Why is it fair that some people are born into poverty or war torn countries?

It doesn’t matter what is ‘fair’ in the way you describe that’s not how it works

There are likely to be some pretty big tax changes - probably NIc changes for small ltd companies and self employed people, an overall tax hike and quite possibly something like CGT on main residence.

I wouldn't be terribly surprised actually by the introduction of a top up for the nhs and social care either as tax or compulsory insurance payments as social care has to be properly funded and managed.

What does that mean? You want to be furloughed? Or you object to having to help pay back because you didn’t benefit?

It will be a global issue

I will be worse for us because we have freely chosen to rip up every trade agreement we have with other countries at the end of the year as well.

You couldn't make it up.

Lots pf people will die as basic healthcare has ceased. 2 family members have had cancer treatment halted.