Andrew Neil points out major flaw in Rishi Sunak’s billion pound spending splurge

Andrew Neil points out major flaw in Rishi Sunak’s billion pound spending splurge

The outspoken BBC presenter accused the Tory Chancellor Rishi Sunak of “spraying around billions” but failing to give “context of the fiscal envelope”. He tweeted: “Chancellor spraying around billions in an effort to sustain the jobs market.

“But giving no context of the fiscal envelope, as in revenue, spending, borrowing. Looks like that will wait the autumn Budget.”

Mr Sunak on Wednesday announced a £30billion pound plan to head off an unemployment crisis by paying employers to bring back their furloughed workers and cutting taxes for the hospitality sector and homebuyers.

Mr Sunak told Parliament on Wednesday: “I want every person in this House and in the country to know that I will never accept unemployment as an unavoidable outcome.

“We haven’t done everything we have so far just to step back now and say, ‘job done’. In truth, the job has only just begun.

“I can tell the House we will produce a Budget and Spending Review in the autumn. And we will deal, too, with the challenges facing our public finances.

“Over the medium-term, we must, and we will, put our public finances back on a sustainable footing.”

READ MORE: VAT TAX CUT: Sunak cuts VAT from 20% to 5% for entertainment sector

Businesses will also be handed £2,000 for each new apprentice they hire under the age of 25 as part of the jobs package.

Chancellor Sunak said the money will be in addition to the existing £1,000 payment the Government already provides for new 16 to 18-year-old apprentices.

Investment in traineeships will total £111 million in the current financial year, three times the original scale.

The Chancellor said £17million of funding will be made to triple the number of sector-based work academy placements, and nearly £900million to double the number of work coaches to 27,000.

He said more than 250,000 more young people will benefit from an extra £32million investment in the National Careers Service.

To help Britain’s hospitality and tourism sectors, which are struggling to cope with social distancing rules, he announced a cut in value-added tax (VAT) to 5 percent from 20 percent for six months.

For the housing market, the Chancellor confirmed stamp duty was being abolished on transactions below £500,000 until March 31, 2021 – effective immediately.

He said the average stamp duty bill will fall by £4,500 as a result and nearly nine out of 10 people buying a main home this year will pay none at all.

Published at Wed, 08 Jul 2020 13:23:00 +0000