Sunak's Winter Plan

Chancellor to launch economic measures

Rishi Sunak is unveiling an emergency rescue plan to protect jobs that should include wage subsidies, VAT cuts and more cheap loans for struggling businesses. Other measures are likely to be the extension of the VAT cut to 5% for the tourism and hospitality industries devastated by the lockdown, which was introduced earlier this year, from January to the end of March. And four loan schemes for hard-hit companies are to be extended until the end of November, with terms increased from six to 10 years to reduce monthly payments.According to the Treasury, the Chancellor promises "a flexible and adaptable approach to economic support, because people needed the help and needed it quickly and at the right time.

The centrepiece of the billion pound package is expected to be a scheme, modelled on one in Germany, whereby taxpayers subsidize the wages of workers returning to part-time work after leave.