On Friday, the government of UK announced that they will support employees’ salaries who are facing unemployment due to Coronavirus outbreak, and they gave instructions to close all restaurants and pubs to resist pandemic.
Rishi Sunak, a finance minister, said to reporters that the UK government will offer 80% of salaries to jobless workers for the next three months.
Sunak told the calculation would be applied to all organizations, no matter it’s small or large. The calculations were made to support the British economy. Moreover, it also includes tax relaxation of £30 billion, and banks are offering interest-free loans for the next 12 months.
A few days before, the government of UK had criticized for ignoring the coronavirus pandemic and depending on the citizens to follow the instructions related to social distancing rather than closing the restaurants and pubs.
Meanwhile, Boris Johnson, the prime minister of the UK, strictly forced in a news conference to adopt social-distancing that also includes closure of cinemas, gyms, theaters, pubs, and restaurants.
The salary measures would be done within a few weeks, and that program fully accomplished by the end of April. Carolyn Fairbairn, the director-general of Confederation (British Industry), said that employees and companies will get relief and determination.
The CEO of Motor Manufacturers and Traders of UK’s Society, Mike Hawes, described in a statement that these measures would be a significant relief to the automobile companies, their employees, and families.
Professional economist Deutsche Bank, hopes that the GDP of the UK would be dropped by 4% this year. On the other hand, if the epidemic couldn’t be controlled and Coronavirus stays longer than expected, then the GDP could be contracted to 6% that would be the worst dropdown for the century, they wrote in a research paper on Friday.