Finance

Rishi Sunak could gift Britons £500 each in move to boost the economy

Rishi Sunak, the Chancellor of the Exchequer, is said to be considering plans to roll out a scheme which would seek to give British business a financial helping hand. The plans, originally draw up by think tank the Resolution Foundation would see British adults given £500 in vouchers to spend in the sectors of the economy hit worst by the crisis. Under the plans, children would also be given £250 worth of vouchers for similar means.

VAT cuts along with tax rises have been speculated for a number of weeks in an effort to encourage spending, and rake in money from Britons respectively. 

Similar proposals have been implemented elsewhere in the world, to alleviate concerns of a widespread economic downturn. 

Taiwan has implemented a stimulus voucher scheme which commenced on July 1, enabling citizens to use the scheme until December 2020.

In Wuhan, where the virus is first reported to have originated, Chinese authorities handed out half a billion yuan of vouchers to encourage consumer spending. 

And the Maltese government has handed out vouchers of 100 euros to spend in bars, hotels and restaurants. 

“As well as setting out the biggest ever peacetime job support programs, the Chancellor should get Britain spending in place where it’s needed most.

“A universal ‘High Street Voucher’ scheme – worth £500 per adult and £250 per child – to be spent only in these sectors would kickstart demand in the right parts of our economy, boost living standards, and deliver targeted support to the businesses that need help the most.

“The Chancellor has already shown that big, bold measures like the Job Retention Scheme are welcome and necessary in the current economic climate. He should take this same approach as we enter the crucial recovery phase of the crisis.”

Mr Sunak is set to announce a recovery package on Wednesday, which will lay out new plans for steering the UK economy through the aftermath of the crisis. 



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