| UK furlough extended to end of September |
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Chancellor Rishi Sunak will reveal the government’s tax and spending plans in the Budget later – and the latest announcement before the speech is that the UK furlough scheme will be extended to the end of September.
The Coronavirus Job Retention Scheme, as it’s officially known, began in March 2020 and was due to finish at the end of April. It pays 80% of an employee’s wages when they cannot work during the pandemic. It has protected 11m jobs so far, at a cost of almost £50bn, and has already been extended twice. Under the latest extension, the employer will pay 10% of the furlough in July, and 20% in August and September.
Mr Sunak will also announce that a fourth grant from the Self-Employment Income Support Scheme will be available from April. “There's now light at the end of the tunnel with a roadmap for reopening,” he said. “So it's only right that we continue to help business and individuals through the challenging months ahead - and beyond."
Read our budget preview here, and see our economics editor Faisal Islam’s analysis below. | |
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| Nicola Sturgeon facing calls to quit |
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| Scottish First Minister Nicola Sturgeon is facing calls to resign after new documents raised further questions about her involvement in the Alex Salmond saga. The government has published emails showing it continued an ultimately doomed legal fight with Mr Salmond despite its lawyers advising it was likely to lose. Further evidence from two other witnesses also called into question Ms Sturgeon's version of events. She will face an inquiry over the affair on Wednesday. Scottish Conservative leader Douglas Ross said there was "no longer any doubt that Nicola Sturgeon lied to the Scottish Parliament and broke the ministerial code on numerous counts". Here are seven key questions for Ms Sturgeon. | |
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| Texas ends mask rules and opens '100%' |
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| Texas will end its mask rules and allow businesses to reopen at full capacity next week, Governor Greg Abbott has announced. "It is now time to open Texas 100%," the Republican said on Tuesday. Texas is the largest US state to end its mask mandate. Similar rules have also been lifted in other states, including Michigan, Louisiana, and Mississippi. The decisions are at odds with US President Joe Biden, who has said coronavirus restrictions are still necessary. . | |
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| |  | | | It is incredible to think that last year's Budget did not even contain the word "furlough".
Official confirmation of the pandemic came hours after its publication, swiftly rendering most of its numbers obsolete.
But so far in this crisis, unemployment has gone up only modestly. Furlough and the separate support scheme for the self-employed have prevented mass unemployment.
These extensions now aim to prevent a rapid rise in joblessness at the end of the schemes. The BBC understands that unemployment forecasts will be revised down on Wednesday.
At more than £10bn, the job support spending is almost worthy of a Budget in and of itself.
But the full document will reveal whether the chancellor's borrowing spree is limited to the "rescue phase" of this crisis, or if his confidence in a jobs bounce-back means the economy does not need further stimulus - and could even sustain some business-focussed tax rises.
After the jabs, the jobs are the great hope. | |
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| | Faisal Islam | BBC economics editor | |
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| | | | Most papers lead on the furlough extension and the Budget, with the Telegraph saying "calls are growing" for a quicker reopening. In other stories, the Mail says NHS staff could be forced to have the vaccine, while the Times claims the Duchess of Sussex was accused of bullying during her time at Kensington Palace. A spokesman for Prince Harry and Meghan said the couple were victims of a "smear campaign". Read all the front pages here. | |
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| | | Quarantine Delays in testing for some arrivals into the UK |
| | | | | | Moon visit Japanese billionaire seeks eight volunteers |
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