Rishi Sunak set to release Covid recovery plan this month
Rishi Sunak will release a plan for the UK’s post-Covid economic recovery this month alongside Boris Johnson’s roadmap of how the country will ease the current lockdown.
The plan will reportedly include a medium-term strategy for how the UK will boost investment and skills as the economy starts its recovery, and will be released before the 3 March Budget.
The plan will be the latest in a series of economic schemes and announcements Sunak has unveiled in the past year as a part of the government’s near £300bn spend on Covid-related measures.
It comes as the CBI yesterday called on the government to collaborate with the UK’s private sector on how to reopen the economy.
A source close to the chancellor told the Financial Times: “Rishi is expecting this to be the last time he talks about the immediate term support package.”
Johnson is expected to announce that the Covid lockdown will be eased on 8 March, however some parts of the economy, like hospitality, may not be reopened until May.
Sunak’s flagship furlough scheme is due to end at the end of April, however business groups are calling for an extension until the summer as many businesses may still not be allowed to open by then.
CBI director-general Tony Danker yesterday wrote to business secretary Kwasi Kwarteng to ask the government to outline six elements when drawing up its lockdown exit strategy, including what will be considered high or low-risk “economic activity”, whether there will be a return to tiered restrictions and what conditions need to be met to ease restrictions further.
“Clearly, the precise dates will be determined by data, so let’s use this time wisely to get the roadmap right together for when lockdown ends,” he said.
“Businesses are currently completely in the dark when planning for the weeks and months ahead and this is hindering investment. We can provide more clarity and do the prep work now to enable them to plan for reopening and growth.”