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6 July 2020, 13:19
Chancellor Rishi Sunak is said to be considering a scheme to boost parts of the economy hardest hit by coronavirus.
Chancellor of the Exchequer Rishi Sunak is looking over proposals all UK adults should be given £500 to spend on industries hardest hit by the effects of the coronavirus pandemic.
The plans, drawn up by the Resolution Foundation, are aimed at kickstarting the economy through a surge in spending.
While UK adults would be given £500, children could be given £250 as part of the scheme.
The vouchers would only be able to be spent in certain sectors hit hard by the effects of covid, such as hospitality and in-store retail as opposed to online.
Rishi Sunak will update the country on the government’s plans for the economy on Wednesday 8 July, and in the run-up he has refused to rule out introducing a similar scheme in the short or medium term.
Similar strategies have already been used in countries including Taiwan and Malta.
The scheme could cost up to £30 billion to the UK economy.
Speaking to The Observer, Resolution Foundation research director James Smith said: “Social distancing has huge implications for firms in sectors like retail, hospitality, tourism and leisure that will last into the reopening phase.
“That is why the jobs of so many workers in these sectors are in the firing line. The chancellor’s recovery package on Wednesday should reflect this unique economic challenge.”
Sunak will make announcements on the government’s upcoming support schemes and plans to get the economy moving again on Wednesday.