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IFS analysis of chancellor’s plans to be published as Sunak takes to airwaves this morning

Mass unemployment feared despite Rishi Sunak’s ‘plan for jobs’
Global coronavirus live: latest updates

8.30am BST
Labour has accused the chancellor of taking a “one-size fits all” approach in its incentive scheme to persuade employers to keep on furloughed staff beyond October.
Shadow chancellor Anneliese Dodds told BBC Radio 4’s Today programme:
My major concern with the way government is proceeding now is that they’re withdrawing the job retention scheme and the self-employed scheme at the same time, right across the whole economy.
We all know that some sectors are being much more strongly impacted than others, the chancellor’s continuing with that one-sized fits all approach, we would urge him to look again at this, we have been continuously.
I do find it a little peculiar that we now have this bonus that will be paid to all employers regardless of whether their business are back operating up to full capacity or not.
We really need to have targeted support, this is a crisis like no other where the impact is very strongly sectoral, we should have had a more sectoral approach from the chancellor.
Shadow Chancellor @AnnelieseDodds says Rishi Sunak needs to take a targeted approach to healing the economy. She is concerned the Chancellor is applying a ‘one size fits all’ across the economy when the pandemic has impacted different sectors in different ways. pic.twitter.com/1qX6VdfBkg
I actually think it will make a significant difference, it is something that people were actually interested in calling for.
Given the income distribution of those on furlough, we know that 1,000 can be a significant reward and incentive to employers to successfully bring staff back and continuously employ them.
I would make the same decisions again and I’m sure if we had a more targeted approach in this instance you’d probably have me on this show saying ‘well, why are these people excluded?’
8.25am BST
The chancellor Rishi Sunak has told BBC Breakfast the government’s support plan is one of the “most comprehensive and generous set of interventions” in the world, but acknowledged some people would still be badly affected.
After outlining the schemes announced on Wednesday, Sunak said:
The analysis we published yesterday which shows the totality of what we’ve done demonstrates very clearly that the lowest income households are the ones who have been supported the most by everything we have done but I would acknowledge that this has been a period of extreme hardship for many people and indeed hardship lies ahead.
“I can’t get my head around how the Chancellor expects anyone to survive on zero income”This is what the Chancellor Rishi Sunak had to say when we put self-employed Mark’s concerns to him on #BBCBreakfast ⤵️More here: https://t.co/4HnJdiBF94 pic.twitter.com/0x6t5oaB43
If you’re saying to me there are individual people who are suffering hardship as a result of what’s happened then I completely agree and I sympathise with that, it is not possible to ensure that every single person is not impacted by what’s happening.
We’ve shut our country and economy down for months on end, that is sadly going to have a significant impact and I’ve consistently been honest with people that hardship lies ahead and that’s why we’ve tried to mitigate as much of that hardship as possible. Continue reading...