Rishi Sunak’s multi-billion pound rescue package for the self-employed

Rishi Sunak to announce cash bail-out for five million self-employed Britons facing coronavirus ruin – after promise to cover 80% of laid-off workers’ incomes

  • Chancellor Rishi Sunak is preparing the fresh coronavirus economic bailout 
  • Follows announcement that Government would cover 80% of employers’ wages
  • Musicians said the outbreak caused ‘complete shutdown of our places of work’ 
  • Coronavirus symptoms: what are they and should you see a doctor?

A multi-billion pound rescue package to protect Britain’s five million self-employed workers could be announced as soon as today.

Chancellor Rishi Sunak is preparing the fresh coronavirus economic bailout amid warnings thousands of sole traders will not survive the crisis.

He had announced on Friday that the Government would cover 80 per cent of employers’ wage bills in a bid to stop mass lay-offs. But following criticism that the self-employed were not receiving a similar level of support, the Treasury has spent the weekend drawing up a new package.

 Chancellor Rishi Sunak (pictured on Friday) is preparing a multi-billion pound rescue package to protect Britain’s five million self-employed workers

Banks STILL plan overdraft hike 

Banks are pressing ahead with plans to raise overdraft rates to nearly 50 per cent – despite the risk of customers falling into the red in the coronavirus crisis.

High Street banks will all increase the cost to customers within days, meaning millions who use overdrafts responsibly face extortionate interest charges.

Consumer experts are calling on banks to delay the move, which follows a change of rules by the City watchdog. Anthony Morrow, of financial advice site OpenMoney, said: ‘We all need to do what we can to limit the financial burden that this crisis has created.’

The new charges – from April 6 – come after the Bank of England cut the base rate to an historic low of 0.1 per cent. Nationwide, Santander, HSBC, and TSB have announced rises of up to 39.9 per cent, while NatWest will charge up to 39.49 per cent, and Barclays 35 per cent. 

Amid mounting pressure, more than 2,000 musicians have today written to the Chancellor warning that the outbreak has resulted in the ‘complete shutdown of our places of work’.

Signatories included musicians in the London Symphony Orchestra, band members in West End musicals such as Mamma Mia! and Strictly Come Dancing vocalist Lance Ellington. The British Chamber of Commerce last night warned that sole traders across the country were seeing their livelihoods ‘vanish in the blink of an eye’.

Dr Adam Marshall, director general of the BCC, said: ‘While we understand the complexity involved, there are five million self-employed people who need help similar in scale and scope to that put in place for larger firms in recent days. We will work closely with ministers to find a way to deliver support to self-employed people and to ensure that the measures announced for larger businesses make it through quickly to the front line.’

CBI director general Dame Carolyn Fairbairn said the Chancellor’s rescue package last week had saved millions of jobs.

Mr Sunak announced on Friday (pictured) that the Government would cover 80 per cent of employers’ wage bills in a bid to stop mass lay-offs

Mr Sunak announced on Friday (pictured) that the Government would cover 80 per cent of employers’ wage bills in a bid to stop mass lay-offs

But she contrasted his pledge to provide 80 per cent of employees’ wages – up to £2,500 per month – with the support given to the self-employed, who were told to claim Universal Credit or statutory sick pay at a rate of £94 per week. On Sky’s Sophy Ridge on Sunday show, Dame Carolyn said it was ‘not enough for the self-employed to live on’.

Communities Secretary Robert Jenrick told the BBC’s Andrew Marr Show: ‘It is operationally very difficult to create a scheme akin to [the bailout] for the self-employed but we are reviewing this. If there are further steps we need to do, we will take them.’

One of the suggestions is to copy Norway, where the government will pay self-employed workers grants of 80 per cent of their average income over the past three years.

In addition to the workers’ bailout, the airline industry – on the brink of disaster due to grounded flights – may benefit from a separate deal. 

Read more at DailyMail.co.uk