In yesterday’s summer statement, Rishi Sunak warned that the government will be unable to protect "every single job" as the country prepares to enter into a "severe recession".
The chancellor did say that the government was focused on "throwing everything we can" in order to stem job losses, however, he admitted that that some cash bonuses to take back workers who were furloughed would be used for firms already keeping their staff on.
While the country is "borrowing record amounts", the chancellor believes that the decision is “the right thing". Public spending to counteract the impact of Covid-19 has risen to almost £190 billion.
In a statement to the BBC, Sunak said: "If you're asking me 'can I protect every single job' of course the answer is no.
"'Is unemployment going to rise, are people going to lose their jobs?' Yes, and the scale of this is significant.”
He continued that: "We are entering one of the most severe recessions this country has ever seen. That is of course going to have a significant impact on unemployment and on job losses."
A range of measures were announced yesterday to help boost the economy. These include a temporary reduction in VAT to both the hospitality and tourism industry, in addition to an eating out scheme for the month of August and a bonus scheme for employers who retain their furloughed employees at the end of the pandemic. Stamp duty has also been cut until March 2021, and funds have been provided to make homes more energy efficient.
