UK recovery plan: Finance minister wants to create youth jobs

LONDON, July 8 (Online): British Finance Minister Rishi Sunak will announce on Wednesday his next moves to prevent a wave of job cuts from snowballing into a full-blown unemployment crisis in the world’s sixth-biggest economy.

Sunak is already on course to take the United Kingdom’s borrowing to World War II levels as he subsidises nine million jobs – equivalent to more than one-third of private-sector employees – alongside other emergency measures.

The 40-year-old former Goldman Sachs analyst, who only became finance minister in February, has won plaudits for setting aside the pro-market instincts of his Conservative Party and putting the state at the heart of the UK’s coronavirus response.

Now, with a string of companies announcing redundancies – from the publisher of the Daily Mirror newspaper to jet engine maker Rolls-Royce – he is facing calls to do more, including cuts to employers’ social security contributions.

Sunak’s announcement in parliament – expected around 11:30 GMT – will include a 2 billion-pound ($2.5bn) fund to create six-month work placement jobs for unemployed 16 to 24-year-olds and the largest ever rise in partly government-funded apprenticeships.

“Young people bear the brunt of most economic crises, but they are at particular risk this time because they work in the sectors disproportionately hit by the pandemic,” Sunak said in a statement.

The Resolution Foundation think tank estimated the programme could help up to 300,000 young people find work.

Sunak has said he will separately spend 3 billion pounds ($3.8bn) to improve the energy efficiency of homes and public buildings, which would support more than 100,000 jobs.

He is reportedly considering either making a cut to value-added tax or giving away vouchers to boost spending at pubs, restaurants and other hospitality firms, which employ 2.4 million people but are struggling to cope with social distancing rules.

Sunak is also expected to cut property purchase taxes which could jump-start the housing market.

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