Tag: Politics

Chancellor announces worker support package

The Chancellor has outlined an unprecedented package of measures to protect millions of people’s jobs and incomes as part of the national effort in response to coronavirus.

The support comes as the UK Government instructs entertainment and hospitality premises, like bars and restaurants, to close to limit spread of coronavirus.

A new Coronavirus Job Retention Scheme will be set up to help pay people’s wages. Employers will be able to contact HMRC for a grant to cover most of the wages of their workforce who remain on payroll but are temporarily not working during the coronavirus outbreak.

Any employer in the country- small or large, charitable or non-profit will be eligible for the scheme.

Universal Credit and tax credits will also be increased as part of an almost £7 billion welfare boost, as he outlined one of the most generous business and welfare packages by any government so far in response to Covid-19.

To ease cash flow pressures for UK VAT registered businesses, VAT bills from now until the end of June, will be deferred until the end of the tax year.

The Chancellor’s workers’ support package means:

  • UK workers of any employer who is placed on the Coronavirus Job Retention Scheme can keep their job, with the government paying up to 80% of a worker’s wages, up to a total of £2,500 per worker each month. These will be backdated to 1st March and will be initially open for 3 months, to be extended if necessary.
  • VAT payments due between now and the end of June will be deferred. No VAT registered business will have to make a VAT payment normally due with their VAT return to HMRC in that period. Income tax payments due in July 2020 under the Self Assessment system will be deferred to January 2021, benefitting up to 5.7m self-employed businesses.
  • Additionally, the Coronavirus Business Interruption Loan Scheme, launched at Budget, will now be interest free for twelve months.
  • The standard rate in Universal credit and Tax Credits will be increased by £20 a week for one year from April 6th, meaning claimants will be up to £1040 better off.
  • Nearly £1bn of additional support for renters, through increases in the generosity of housing benefit and Universal Credit. From April, Local Housing Allowance rates will pay for at least 30% of market rents in each area.

HMRC are working “night and day” to get the unprecedented Coronavirus Job Retention Scheme up and running and we expect the first grants to be paid within weeks.

Chancellor of the Exchequer Rishi Sunak said: “We continue to do everything possible to protect the public from coronavirus. We have been working round the clock so that we can today confirm an unprecedented package of support to protect people’s jobs and wages. And we’re strengthening our safety net at the same time.

“I said we would help individuals, businesses and the most vulnerable through this outbreak and I meant it. We will do whatever it takes in the weeks and months ahead.”

Work and Pensions Secretary Therese Coffey said: “We will do whatever it takes to protect the most vulnerable and get them through these unprecedented times, and the changes we are making to Universal Credit will help millions of people in most need.

“We are standing by those who rely on the welfare safety net as we work towards turning the tide on this disease and moving on together.”

Business Secretary, Alok Sharma, said: “We have committed to doing whatever it takes to support businesses and households through these unprecedented times, and today shows just how far we are willing to go.

“This intervention is unheard of in peacetime, but it is crucial we stand behind our businesses and those that rely on them for work and income.”

All measures announced yesterday across the business and welfare package are UK-wide.

In order to help delay the spread of Coronavirus, the Government instructed entertainment and hospitality businesses including pubs, bars and restaurants to close from last night.

This follows expert advice that more needs to be done in order tackle the spread of infection – following the call to action to isolate or socially distance. The measure, set to be reviewed on a monthly basis, will not affect supermarkets or retailers that supply fuel, medicines and other vital goods, which will continue to be open as normal for the public.

The following businesses have been asked to close:

  • Food and drink venues for consumption on-site, such as restaurants and cafes.
  • Drinking establishments, including pubs, bars, nightclubs.
  • Entertainment venues, including cinemas, theatres, concert halls, and bingo halls.
  • Museums and galleries.
  • Spas, wellness centres and massage parlours.
  • Casinos and betting shops.
  • All indoor leisure and sports facilities, including gyms.

This measure will not impact the relaxation of planning rules announced earlier this week which will allow pubs and restaurants to operate as hot food takeaways during the coronavirus outbreak.

The decision on closures will be reviewed on a monthly basis, and are being implemented across the whole of the UK in agreement with the devolved administrations. If needed, the government will enforce these measures by law.

Communities Secretary Rt Hon Robert Jenrick MP said: ”We will do whatever it takes to protect people across this country as we tackle the coronavirus outbreak. 

“While people have responded well to calls for social distancing and self-isolation, we must go further if we are to be able to stop the spread of the virus and protect the most vulnerable people in our society, and our NHS.

“That is why we are now telling entertainment and hospitality premises to close temporarily, and people to only travel if absolutely essential, to help protect each other from the further spread of the virus.

“We stand behind businesses and their employees and are offering an unprecedented range of support as we tackle this huge challenge together.”

More information about the measures announced for businesses by the Chancellor can be found here.

Responding to the Chancellor’s further economic announcements, John McDonnell MP, Labour’s Shadow Chancellor, said: “The Chancellor has shifted direction but unfortunately not far enough or fast enough.

“The Government must give people the economic security to stay at home by lifting the level of Statutory Sick Pay, but it appears that the Government hasn’t done that today. Sick pay is being left at a level that the Health Secretary said he could not live on, yet this is what the self-employed are being asked to get by on.

“The Chancellor’s wage protection plan sets out no obligation for employers to keep staff on, and no commitment to full wages being paid, with the cap on incomes meaning that many people will take a significant pay cut.

“This will also take some weeks to roll out at a time when wages need to be guaranteed more urgently.

“Other benefits, including for carers, are not being lifted adequately.

“The Chancellor said he would do whatever it takes, but he can and should go further – and we will keep working constructively with Government to ensure the best possible response to the Coronavirus crisis.”

A spokesperson for the Scottish Licensed Trade Association said: “These extra unprecedented measures are very much welcomed and are a life saver for Scotland’s pubs and bars and the hospitality industry in general. 

“Without all the measures introduced to help our industry, many business would have been forced to close and staff would have lost their jobs and for many these actions would have been permanent.

“Considering our industry was on the edge of a precipice only a week or so ago, the future, for both businesses and staff is now more secure than anyone could have ever foreseen.”

The initiative has also been welcomed by the country’s biggest trade union.

Unite general secretary Len McCluskey said: “This is the package of measures that trade unions like Unite have been pressing for as the most effective way to stave off mass hardship and the conditions for a depression.  

“We recognise that these are huge decisions for any government, and especially for a Conservative government, but they have listened to the calls for action and have acted appropriately. Rishi Sunak’s wage support measures are a historic first for this country, but are bold and very much necessary.

“The key to any wage support programme is that it needs to be simple, straightforward and above all fast. This is the only way to put money into the pockets of the millions who see their livelihoods hanging by a thread.

“This will definitely be some relief amid all the fear in households across the UK this evening. Never before has the country faced a crisis of this nature. People who were only days ago in secure work are now worried sick about putting food on the table in light of the coronavirus pandemic.

“The chancellor has done the right thing and we look forward to working further with him in the coming days to get this money into the hands of those most in need.”

 

BRITAIN CLOSES DOWN

Pubs, restaurants, theatres, gyms and leisre centres have been ordered to close ‘as soon as possible’ by Prime Minister Boris Johnson. The UK is shutting down – and social life as we know it is changing forever.

PRIME MINISTER BORIS JOHNSON’s STATEMENT IN FULL

Good afternoon and thank you for coming again,

Today I am joined by the Chancellor of the Exchequer Rishi Sunak and Jennie Harries deputy chief medical officer.

Yesterday I set out the ambition of this government to turn the tide against coronavirus within 3 months. And I want to repeat that determination today.

We are going to do it with testing. We are going to do it with new medicines, and with new digital technology that will help us to see the disease as it is transmitted, and thereby, by eliminating it, to stamp it out.

And above all, now we are going to defeat this disease with a huge national effort to slow the spread by reducing unnecessary social contact.

And I want to thank everyone for following the guidance we issued on Monday:

to stay at home for 7 days if you think you have the symptoms,

for 14 days if anyone in your household has either of the symptoms – a new continuous cough or a high temperature.

To avoid pubs, bars, clubs and restaurants.

To work from home if at all possible.

Keep washing your hands.

I know it has been tough.

I know it has been inconvenient.

But these actions that we’re all taking together are already helping to take the strain off our NHS.

Bit by bit, day by day, by your actions, your restraint and your sacrifice, we are putting this country in a better and stronger position, where we will be able to save literally thousands of lives, of people of all ages, people who don’t deserve to die now.

People whose lives can, must, and will be saved.

And as we take these actions together and as we make these sacrifices, we can see the impact on the real economy.

Already, fantastic British companies, already under huge strain, big and small.

Workers who are finding that their jobs are under threat or are going, through no fault of their own. And to all of them, we in government say: We will stand by you.

And I say that to companies, remember our joint objective: to beat this virus. And we will do everything in our power to help.

And in just a minute, Rishi is going to explain how we are going to help workers of all kinds to get through this crisis,

Supporting you directly in a way that Government has never been done before, in addition to the package we have already set out for business.

And of course these measures are intended to be temporary and of course I am confident that, in time, the UK economy is going to bounce back.

Of course it is.

But I must be absolutely clear with you: the speed of that eventual recovery depends entirely on our ability, our collective ability, to get on top of the virus now.

And that means we have to take the next steps, on scientific advice and following our plan, we are strengthening the measures announced on Monday which you will remember.

And of course people have already made a huge effort to comply with those measures for avoiding unnecessary social contact.

But we need now to push down further on that curve of transmission between us.

And so following agreement between all the formations of the United Kingdom, all the devolved administrations, we are collectively telling, telling cafes, pubs, bars, restaurants to close tonight as soon as they reasonably can, and not to open tomorrow.

Though to be clear, they can continue to provide take-out services.

We’re also telling nightclubs, theatres, cinemas, gyms and leisure centres to close on the same timescale.

Now, these are places where people come together, and indeed the whole purpose of these businesses is to bring people together. But the sad things is that today for now, at least physically, we need to keep people apart.

And I want to stress that we will review the situation each month, to see if we can relax any of these measures.

And listening to what I have just said, some people may of course be tempted to go out tonight. But please don’t.

You may think you are invincible, but there is no guarantee you will get mild symptoms, and you can still be a carrier of the disease and pass it on to others

So that’s why, as far as possible, we want you to stay at home, that’s how we can protect our NHS and save lives.

To repeat, I know how difficult this is, how it seems to go against the freedom-loving instincts of the British people. And I also know much, right now, workers and business deserve the financial reassurance we are giving them.

But we will get through this.

We will get through it together, and we will beat this virus.

And to ram that point home: the more effectively we follow the advice that we are given, the faster this country will stage both a medical and an economic recovery in full.

SCOTLAND’S FIRST MINISTER ALSO ADDRESSED THE NATION:

In recent days, we’ve been asked to make changes to our lives that would have been unimaginable a few weeks ago.

COVID-19 is the biggest challenge of our lifetimes.

The number of cases is set to rise sharply.

We must do all we can to slow it down and save lives.

So I want to talk to you directly about what we can all do to help – and offer some words of reassurance in what I know is an anxious time.

All of us must act now to slow the spread of the virus.

Washing our hands regularly is important.

But we must also reduce the number of people we meet and come into contact with.

That means staying at home if you or anyone in your house has a high temperature or a new and persistent cough.

For all of us, it means working from home if possible; avoiding public transport and not socialising in groups.

We’ve also asked people to stay away from crowded places like pubs, restaurants and cinemas.

But I can confirm that, in light of advice this afternoon from our scientists and the Chief Medical Officer that there must be strict compliance for that to be effective. I am now asking restaurants, cafes, pubs, gyms and cinemas to close.

I know how difficult this is.

But it is vital to reduce our risk of getting the virus.

And to reduce the risk of infecting those who are most vulnerable of becoming seriously ill or dying.

In short, it will save lives.

It also gives our NHS the best chance of coping.

We’ve put the NHS on an emergency footing.

We’re taking steps to increase the capacity of our hospitals and intensive care wards.

But those who work in our health and social care services will be tested like never before.

Most of us have friends and family working in the NHS – my own sister and sister-in-law are among them.

The debt of gratitude we owe all of them is enormous.

COVID-19 is a health emergency.

But the steps we take to deal with it are causing disruption in our economy too.

Alongside your concern about the virus, many of you are deeply worried about your jobs and income.

The Scottish Government will do all we can to support you.

As government, we are asking you to take unprecedented steps.

So the level of support we provide to you must be unprecedented in return.

Finally, a crisis like this will have an impact on wellbeing and mental health.

To older people – we are asking you to stay away from your grandkids, from the people you love. That’s hard. But it is for your protection – so you can stay around to see them grow up.

To children – I know this is a strange time. You’re away from school, and won’t be able to spend as much time with friends. The adults around you are probably feeling a bit anxious too. So help them. Follow their advice. Study and do your homework. But don’t forget to have fun. And wash your hands.

And let’s all look out for each other.

At times of crisis, we need each other more, yet we’re being told to stay apart.

But we can still communicate and offer comfort.

Modern technology is sometimes a curse – it can now be a lifeline.

Phone or skype loved ones. Text neighbours or drop a note through their door to see if they need help. Maybe even write a letter to your grandparents.

Support your local business if you can.

But please, do not panic buy. There’s plenty to go round if we all act responsibly.

We are entering stormy waters, and I can’t tell you yet when we will reach dry land.

I can promise you that as your First Minister, I will do my utmost to lead us safely through.

But I need your help.

I need you to follow health advice.

And I need you to look out for those around you.

There’s no doubt that difficult days do lie ahead.

But I close on a note of hope and belief.

This crisis is reminding us just how fragile our world is.

But it is also reminding us what really matters – health, love, solidarity.

With compassion and kindness – and with the dedication and expertise of our NHS – we can and we will get through this.

Thank you, for all you are doing to help.

Chief Medical Officer Dr Catherine Calderwood said: “COVID-19 is the biggest challenge of our lifetimes, and with the number of cases set to rise sharply we must do all we can to slow it down and save lives.

“As well as continuing to wash hands more regularly and self-isolating if you or anyone in your house has any symptoms, we must also limit the number of people we come into contact with.

“That is why, in light of updated advice, we are now asking restaurants, cafes, pubs, gyms and cinemas to close. I know how difficult this is, but it is vital in reducing the spread of the virus.

“Most people have been following advice and guidance and we thank them for that. But these measures are being introduced to ensure that everyone follows the guidance which will, ultimately, save lives.”

In an unprecedented move, the government is to pay 80% of wages for employees unable to work due to the coronavirus pandemic, up to £2,500 a month, the chancellor has announced. 

The magic money tree is being tested like never before.

 

NHS staff must have parking charges waived amid crisis, say Tories

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NHS staff at the three Scottish hospitals which still demand payment for parking should have their charges waived, the Scottish Conservatives have said.

Workers at the Edinburgh and Glasgow Royal Infirmaries, as well as Ninewells in Dundee, are still charged by private firms for parking there.

At First Minister’s Questions yesterday, shadow health secretary Miles Briggs said those fees should not apply during the coronavirus crisis.

Nicola Sturgeon said she agreed with the sentiments, adding that health secretary Jeane Freeman was looking into alternatives.

The Scottish Conservatives have long campaigned for the parking charges to be refunded to staff and vulnerable patients.

Mr Briggs said, given the sacrifices being made by key health workers, the move had to apply now. 

Scottish Conservative shadow health secretary Miles Briggs said: “NHS staff shouldn’t have to pay to park at work at the best of times.

“But given this crisis, their brave and fundamental role in fighting it, and the advice given in relation to public transport, the message has to be clear.

“All those working at the three hospitals where charges still apply should be able to park there for free. Given the sacrifice they are making on behalf of all of us, that’s the very least they deserve.

“It’s vital we see urgent action now and I’m pleased the First Minister has agreed to take this forward.”

Boris Johnson: We can turn the tide within the next 12 weeks

Prime Minister Boris Johnson’s latest statement on Coronavirus

I want to begin by thanking everyone, by thanking you, in the media, and also thanking everyone for the huge efforts that the country is making to comply with the advice that we’ve been given.

And we’re asking such a huge amount,

asking students to put their education on hold,

we’re asking people not to socialise in the normal way

And already we can see the impact that this is having on the UK economy and on business, on great, great companies

And so it’s vital that we in Government stand behind them when what we are asking everyone to do is so crucial for saving literally thousands of lives by defeating this virus

And I am conscious as the days have gone by that people will want to know how long we are expecting them to keep it up

And I wanted to try to say something today about how I see the timescale of this campaign and where we’re going and what we need to do

I do think, looking at it all, that we can turn the tide within the next 12 weeks

And I am absolutely confident that we can send coronavirus packing in this country but only if we take the steps, we all take the steps we have outlined,

And that is vital because that is how we are going to reduce the peak

and once we’ve achieved that, and I think that we will, if take the steps that I have said,

then the scientific progress that we’re making will really start to come into play and I wanted to discuss a little bit of that this afternoon with you

because we are rapidly becoming so much better at understanding the genomics at the heart of this virus, a lot of that is going on in this country,

we’re getting better at understanding the medicines that may treat and cure it

And today we have put the first British corona patient into a randomised trial for drugs that may treat the disease

UK experts and scientists expect to start trials for the first vaccine within a month

And above all we are getting better at testing

This crisis is so difficult because the enemy is invisible

And the answer is to remove the cloak of invisibility

And to identify the virus, and to be able to know which of us, is carrying it or who has actually had it and now got over it

And to give you an idea of what is coming down the track

We are in negotiations today to buy a so called antibody test

As simple as a pregnancy test

That could tell whether you have had the disease

And it’s early days, but if it works as its proponents claim then we will buy literally hundreds of thousands of these kits as soon as practicable because obviously it has the potential to be a total gamechanger

Because once you know that you have had it, you know that you are likely to be less vulnerable, you’re less likely to pass it on, and you can go back to work

And of course by the same token we are massively increasing the testing to see whether you have it now

And ramping up daily testing from 5000 a day to 10,000 to 25,000 and then up to 250,000

And that knowledge of where the virus is, will make a huge difference to our management of the disease and our ability to reduce disruption and economic difficulties

And I wanted to set that out because this is rapidly coming down the track as I say, but it will take time to come on stream

And that is why in the meantime, to get back to a theme that you know I’m going to repeat, it is absolutely vital that we follow the advice that we’ve been hearing over the last few days,

The announcements we’ve already made about staying at home if you have the symptoms, if your family has the symptoms,

about avoiding unnecessary contact

Avoiding gatherings where you may pick up the disease

pubs, bars, restaurants

Please, please follow all that advice scrupulously

Work from home if you possibly can

Wash your hands, wash your hands

And it’s by this combination of ruthless, determined, collective action and scientific progress that we’re already seeing that we will succeed

And I know how difficult it may be, or it may seem right now, but if we do this together we will save, as I say, many many thousands of lives

and to everybody in the UK, business world, everybody who is worried about their jobs, and everybody who faces difficulties because of the advice that we are giving,

I say to business, stand by your employees, stand by your workers because we will stand by you

And you’ll be hearing more about that in the course of the next day or so

And that is how, by a mixture of determined, collective action and scientific progress, I have absolutely no doubt that we will turn the tide of this disease and beat it together.

Extra funding to help communities affected by Coronavirus

An additional £350 million will go to those most affected by the coronavirus (COVID-19) pandemic, Communities Secretary Aileen Campbell announced yesterday.

The funding will be made available to councils, charities, businesses and community groups and designed to be flexible, cutting down on red tape to enable them to respond swiftly and according to local need for people impacted economically or through reduced contact with society, including anyone struggling to access food.

Ms Campbell said allowing a high level of flexibility was the best way to ensure they were most effective: “This pandemic will disrupt lives like never before and cause financial hardship and negatively impact on our wellbeing.

“Be assured, however, that protecting and supporting people during these unparalleled times is the absolute focus of this government.

“Our funding package will be focused on delivery, not bureaucracy or red tape. Local authorities, local businesses, community groups and the third sector know and understand the support needs of their communities the best. Where people and organisations have solutions or ideas, I want to hear them.”

“Unless we work with local partners the impact of our investment will not be felt by those that need it most. So my message today is – if we can help you to help the people of Scotland then we will.”

The emergency funding package will be allocated to existing funding streams through several new funds, with the £95 million package direct to local authorities made up of:

£50 million in Barnett consequentials from the UK Government’s hardship fund is being passed direct to local authorities to support their own local resilience, support and hardship plans.

£45 million will be added to the existing Scottish Welfare Fund which makes Community Grants and Crisis Grants available to those in immediate need. This more than doubles the current £35.5 million fund, which is administered by local authorities. They will be given more flexibility in how it is used to ensure they can fully support people in financial crisis, including workers in the ‘gig economy’.

In addition:

  • a £70 million Food Fund will help organisations in the public, private and voluntary sectors address issues of food insecurity, especially for older people, and families who may not be able to rely on free school meals
  • a £50 million Wellbeing Fund will help charities and others who require additional capacity to work with at-risk people who may be worst affected by the crisis, including homeless people and those experiencing fuel poverty
  • a £40 million Supporting Communities Fund will be used to support the rapidly growing and inspiring community efforts at a local level which will be vital to national resilience, including supporting people at risk because of age, isolation, carers, homeless people and asylum seekers and signposting people to sources of help such as applying for benefits
  • £50 million will go to meet an anticipated increase in applications for the existing Council Tax Reduction Scheme and Scottish social security benefits
  • £20 million will be allocated to a Third Sector Resilience Fund, to help ensure the health and continued viability of the third sector organisations affected by cash flow and other problems, which have a key role to play in our national response
  • £25 million will be kept in reserve to allow swift and flexible responses to rapidly changing circumstances

Chancellor: “Whatever it takes”

Chancellor announces additional £300 BILLION to keep UK afloat

The Chancellor Rishi Sunak has announced unprecedented support for business and workers to protect against the economic emergency caused by the coronavirus.

This includes unlimited loans and guarantees to support firms and help them manage cashflows through this period. The Chancellor will make available an initial £330 billion of guarantees – equivalent to 15% of UK GDP – and there could be more to come.

At last week’s Budget, the Chancellor provided £30 billion of support to the economy to deal with the crisis by investing in public services, increasing support for vulnerable people and providing business with tax reliefs and loans.

He said he would take further action as the situation evolved and today outlines further measures, including:

To ensure that businesses have access to the funds they need, \the UK Government will provide:

  • support for liquidity amongst large firms, with a major new scheme being launched by the Bank of England to help them bridge Coronavirus disruption to their cash flows through loans
  • increasing the amount businesses can borrow through the Coronavirus Business Interruption Loan Scheme from £1.2 million to £5 million, and ensuring businesses can access the first 6 months of that finance interest free, as Government will cover the first 6 months of interest payments
  • including new legal powers in the Covid Bill enabling us to offer whatever further financial support we think necessary to businesses

Providing £20 billion of business rates support and grant funding to help the most-affected firms manage their cashflow through this period by:

  • giving all retail, hospitality and leisure businesses in England a 100% business rates holiday for the next 12 months
  • increasing grants to small businesses eligible for Small Business Rate Relief from £3,000 to £10,000
  • providing further £25,000 grants to retail, hospitality and leisure businesses operating from smaller premises, with a rateable value over £15,000 and below £51,000

Mortgage lenders have agreed they will support customers that are experiencing issues with their finances as a result of Covid-19, including through payment holidays of up to 3 months. This will give people the necessary time to recover and ensure they do not have to pay a penny towards their mortgage in the interim.

Confirmation that government advice to avoid pubs, clubs and theatres etc. is sufficient for businesses to claim on their insurance where they have appropriate business interruption cover for pandemics in place.

To support the food industry and help provide meals for people who need to self-isolate, the UK government will relax planning regulations to allow pubs and restaurants to start providing takeaways without a planning application.

The Chancellor of the Exchequer Rishi Sunak said: “We will do whatever it takes to protect our people and businesses from the effects of this global economic emergency brought on by the Coronavirus pandemic.

“The interventions I am setting out today will help support businesses of all sizes – so they can continue operating during these unprecedented times.”

The action announced yesterday means that over £3.5 billion in additional funding will be provided to the devolved administrations for support to businesses in Scotland, Wales and Northern Ireland.

The Chancellor will expand on his plans to keep the economy afloat later today and an announcement of support for people who live in rented accommodation is expected this week.

Labour’s John McDonnell MP, Shadow Chancellor, responding to Chancellor Rishi Sunak’s coronavirus update, said: “People are being laid off today and losing their incomes. We are disappointed that this package does not address their concerns.

“The further announcements laid out by the Chancellor lack the certainty required amidst growing public anxiety and still do not go far enough in protecting workers, renters and those who are losing their jobs, or in fully supporting businesses at the scale necessary.

“In particular, the Chancellor’s claim that new forms of employment support will be developed does not appreciate the urgency and gravity of the situation. Workers and businesses need to know now that they will be supported, not in a few days’ time.

“Labour will continue to engage with the Government to ensure we have the proper scale of interventions required to secure proper funding of public services at the time of crisis, public control and oversight of those key services, a strong safety net, and the wellbeing of all.”

Gareth Shaw, Head of Money at Which?, said: “The measures announced by the chancellor, such as a three-month mortgage holiday scheme, are an important first step to helping millions of consumers who may face financial hardship during the coronavirus crisis.

“The government must move swiftly to ensure those in need of assistance get clear information about how these schemes will work in practice – and that the process for doing so is straightforward, ensuring consumers can easily access the support they need in the challenging months ahead.”

Responding to chancellor Rishi Sunak’s package of support for businesses and the prime minister’s pledge to do `whatever it takes’ to support people and jobs through the corona virus crisis, the head of the UK’s leading union, Unite, has said that his union stands ready to play their part throughout this time of crisis.

Len McCluskey, Unite’s general secretary said: “It is abundantly clear that we need a package of measures equal to the public health and economic emergencies now upon us.

“Urgent and considerable action is needed by government to avert personal and industrial catastrophe.

“Unite is pleased to have heard the prime minister and chancellor say very clearly that they `will do whatever it takes’ to protect public health and the economy’s health.  We will hold them to that.

“However, we remain extremely concerned that workers’ and individuals’ own capacity to act on the public health advice will remain seriously compromised because the direct economic support has not yet been provided by government. This must change and urgently.  Providing wage support and covering rents must be a priority.

“It is welcome that those hit by the virus will have a three month mortgage holiday should they need it, but what about the vast majority of people who rent? They need to know that they can put food on the table and keep a roof over their families’ heads. Only then will they feel able to play their part in tackling this public health emergency.

“We urgently need for the government to introduce now the sort of measures that we have seen implemented in our competitor nations, including paying workers 75 per cent plus of their salary while they are forced to be at home as has been introduced in Denmark and Holland.  UK workers deserve the same efforts and assistance.”

 

Face-to-face health assessments for benefits suspended

Face-to-face assessments for all sickness and disability benefits will be suspended for the next 3 months, the government announced yesterday.

The temporary move, effective today, is being taken as a precautionary measure to protect vulnerable people from unnecessary risk of exposure to coronavirus as the country’s response ramps up in the ‘delay’ phase. The DWP says they will ensure those who are entitled to a benefit continue to receive support, and that new claimants are able to access the safety net.

It affects claimants of Personal Independence Payment (PIP), those on Employment and Support Allowance (ESA) and some on Universal Credit, and recipients of Industrial Injuries Disablement Benefit.

The suspension of face-to-face assessments also covers new claims to those benefits.

Work and Pensions Secretary Thérèse Coffey said: “As we move into the next phase of our response to coronavirus, it is right we take steps to protect those with health problems.

“Temporarily suspending face-to-face assessments for sickness and disability benefits will allow us to ensure we continue to provide a safety net for those in need, while removing unnecessary risk of exposure to this disease.”

Anyone who has a face-to-face assessment appointment scheduled from today – Tuesday 17 March – onwards does not need to attend and will be contacted to discuss next steps and alternative arrangements, which could involve either telephone or paper-based assessments. DWP expect this measure will be in effect for the next 3 months but will regularly review the position in line with Public Health advice.

No further action is required by any claimant as a result of this change. They will be contacted with advice on next steps.

DWP continues to accept new claims for all benefits. Anyone already receiving PIP, ESA, Universal Credit or Industrial Injuries Disablement Benefit, will continue to receive their current payments as normal while alternative arrangements are put in place to review or reassess their claim.

Suspending face-to-face health assessments is a precautionary measure which reflects the Prime Minister’s decision to trigger the ‘delay’ phase. It is important to note that this change does not affect or change any existing public health advice.

Read the current NHS guidelines on coronavirus, including advice on those who should stay at home.

Scotland to receive £780 million for coronavirus response

The UK Government will provide at least £1.5 billion to the devolved administrations for their COVID-19 response, it was announced yesterday.

  • this means £780 million for the Scottish Government, £475 million for the Welsh Government and £260 million for the Northern Ireland Executive
  • this adds to the support people across the country will receive through UK-wide measures tackling the impact of COVID-19 including extending Statutory Sick Pay

The Devolved Administrations will receive at least £1.5 billion from the UK Government to make sure they have the resources they need to support people and businesses through COVID-19. This will mean they can increase funding for the NHS and provide grants to businesses.

Through the £1.5 billion package, the Scottish Government will receive £780 million, the Welsh Government £475 million and the Northern Ireland Executive £260 million – worked out through the Barnett formula.

This funding is in addition to the UK-wide support that people in all four corners of the country will receive from the UK Government. This includes extending Statutory Sick Pay, making it easier and quicker to access benefits, and providing a Business Interruption Loan Scheme, among other measures.

Chancellor of the Exchequer, Rishi Sunak, said: “We will do what is right to help businesses and individuals in every part of the UK. That is why we announced a special funding package at the Budget last week to support those affected by COVID19.

“Today I am confirming this additional funding that will ensure the devolved administrations can support vulnerable people, businesses and vital public services, including the NHS, in Scotland, Wales and Northern Ireland.

Scottish Secretary, Alister Jack, said: “The UK and Scottish Governments are working closely together in the fight against COVID – 19 as we do all we can to delay the spread and alleviate pressure on our public services, people and businesses.

“The £780 million for the Scottish Government announced today is in addition to the £1.9 billion spending increase for 2020-21 confirmed at the Budget last week. This will help ensure the Scottish Government has the resources it needs to support those affected by COVID-19.”

This £1.5 billion announcement is part of the £12 billion response plan announced last week to support public services, people and businesses through the disruption caused by COVID-19.

This included a £5 billion COVID-19 Response Fund for the NHS and public services, a £500 million local authority hardship fund, business rates reliefs and £3,000 grants for the smallest businesses – all of which cover devolved policy areas meaning additional funding is being made available for the devolved administrations.

The UK government will continue to work closely with the devolved administrations as the situation develops to ensure they have the funding needed to tackle the impacts of COVID-19.

 

Briggs: Health Secretary ‘misled Scottish Parliament’

On Tuesday this week, Miles Briggs MSP asked Jeane Freeman MSP what her response was to concerns raised by the former chair of NHS Lothian regarding the new Royal Hospital for Children and Young People.

http://www.parliament.scot/parliamentarybusiness/report.aspx?r=12568&i=113612

The Cabinet Secretary for Health stated: “I stress that, on 4 July, I took the decision to halt the move. Mr Houston next met me on 18 July. At no point in the intervening period did he – the chair of a major NHS board – feel that it was incumbent upon him to contact me, as the cabinet secretary, to discuss what might have gone wrong or what should be done next and where the board should be involved.”

It has since transpired that the Cabinet Secretary for Health was contacted by Mr Houston by email on 12 July, despite Parliament being repeatedly told otherwise.

The Scottish Government have refuted that Parliament had been misled on the grounds that the email by Mr Houston did not refer to specific issues.

The correspondence from Mr Houston referred to the “RHCYP/DCN situation” as well as assurances that himself and the board were handling the situation and an offer to meet for a 1 to 1 chat prior to the meeting on the 18th July.

Scottish Conservative Health Spokesperson, Miles Briggs, said: “It truly beggars belief that while Jeane Freeman was answering allegations of lying, she misleads the Scottish Parliament.

“The Health Secretary’s transparent attempts to smear Mr Houston have been exposed for what they are.

“The truth is that Jeane Freeman simply refuses to take responsibility for the mess at the Sick Kids hospital and continues to blame everyone but herself.

“It is clear that Mr Houston did attempt to contact the Cabinet Secretary for Health prior to the 18th July, but was ignored by her, as he has been since Ms Freeman took up the post.”

Chancellor delivers Coronavirus Budget

The Chancellor yesterday set out a £12 billion action plan in response to the economic impact of the coronavirus (COVID-19) outbreak, as part of a Budget that ‘delivers historic levels of public investment, levels up the country and lays the foundations for a decade of growth’.

Chancellor of the Exchequer Rishi Sunak said Britain will rise to the challenge of COVID-19, with a package of measures to support public services, individuals and businesses that may be affected by the outbreak.

In addition to responding to the immediate impact of COVID-19, the Chancellor pledged to put hardworking people first, put more money in their pocket, invest a record amount in infrastructure, boost public services, back business and set out a vision for a greener future.

A record half a trillion pounds (£640 billion) will be invested in Britain’s roads, railways and digital networks to give us the infrastructure that will support economic growth.

The Budget also provides billions of pounds to support our world-class public services; with funding for 50,000 more nurses and 50 million more GP surgery appointments a year.

Millions of families will have more cash to spend thanks to tax cuts through an increase in National Insurance thresholds and a cash boost to the National Living Wage (NLW). The Budget also takes action to support businesses of all sizes and accelerates the UK’s progress towards a greener economy. The Comprehensive Spending Review, which will set out the government’s detailed spending plans for this Parliament, was also launched today and will conclude in July.

Delivering the budget in Parliament Chancellor of the Exchequer Rishi Sunak said: “This Budget responds, at scale, to the immediate threat of Coronavirus and it reports on an economy whose foundations are strong. It is a Budget that provides for security today.

“This is a Budget that will deliver on our promises to the British people and it is the budget of a government that gets things done.

“We’re at the beginning of a new era in this country. We have the freedom and the resource to decide our own future.”

COVID-19

The Chancellor pledged to do ‘whatever it takes’ to support the economy through the disruption caused by COVID-19 with a £12 billion package of targeted measures. It included a £5 billion emergency response fund to support the NHS and other public services, £40 million of new funding for rapid research into COVID-19 and a commitment of up to £150 million to the International Monetary Fund’s Catastrophe Containment and Relief Trust.

To support people affected, the Chancellor announced the government would be extending Statutory Sick Pay (SSP) for all those who are advised to self-isolate and their carers – even if they haven’t yet presented with symptoms. Statutory Sick Pay costs for businesses with fewer than 250 employees will be met by the government in full for up to 14 days.

Rishi Sunak also set out plans to support the self-employed, those earning below the Lower Earnings Limit of £118 per week and a new £500 million Hardship Fund to directly support vulnerable people. The government will also increase the Business Rates retail discount to 100% for one year and expand it to the leisure and hospitality sectors.

Public services

By the end of the Parliament, day to day spending on public services will be £100 billion higher in cash terms than it is today. This Budget commits more than £6 billion of new funding in this Parliament to support the NHS, including to create 50m more GP surgery appointments, ensure there are 50,000 more nurses. The NHS Settlement provided the largest cash increase in public services since the Second World War – an additional £33.9 billion per year by 2024.

Levelling up and getting Britain Building

Billions of investment will be provided across the length and breadth of the country to support communities poorly served by old roads, communications and housing:

  • more than £27 billion will be spent on upgrading strategic roads and £2.5 billion will be spent on fixing potholes
  • £5 billion will go towards the rollout of gigabit-capable broadband in the hardest to reach areas
  • following the recent floods, which devastated parts of the UK, the Chancellor has pledged a record £5.2 billion over six years for flood defences

Cost of living

The Chancellor also put more money into the pockets of 31 million working people thanks to National Insurance Contribution thresholds increasing to £9,500, saving the typical employee around £104 a year from April, while the National Living Wage will increase to £8.72. This is on top a freeze in Fuel Duty, for the tenth consecutive year, and a freeze in duty rates for beer, cider and spirits, while the ‘Tampon Tax’ will be scrapped.

Backing Business

From April, small businesses will benefit from an increase to the Employment Allowance, reducing their employer National Insurance bills by £850 on average and there will be fundamental review of business rates.

Greener economy

To accelerate the UK’s progress towards net zero carbon emissions by 2050 and protect the environment for future generations, the Chancellor announced £500 million for electric car charging infrastructure, to ensure drivers are never further than 30 miles away from a rapid charger. Tree planting in England will increase by 600% and to tackle the scourge of single-use plastics, a consultation will be launched on introducing a Plastic Packaging Tax.

Support for the regions and nations

The Chancellor has also pledged to level up all parts of the UK, with measures to spread opportunity and ensuring everyone benefits from growth. He announced the West Yorkshire Devolution Deal, which will help the region boom through the creation of a Mayoral Combined Authority, while a government economic decision-making hub will be created in the North of England.

As a result of the budget:

  • the Scottish Government will benefit from a £640 million funding boost
  • the Welsh Government a £360 million funding boost
  • the Northern Ireland Executive a £210m funding boost

Scottish Secretary Alister Jack said: “This is a great budget for Scotland. Decisions taken by the UK Government over the last year will deliver an almost £2 billion funding boost for the Scottish Government.

“People and businesses right across Scotland will see the benefits – more than £5 billion for broadband and 4G connectivity, an increase in the national living wage, £22 billion for research and development across the UK, and a freeze in fuel duty.

“The Scotch whisky industry gets a welcome boost, with a freeze on spirits and a review of alcohol duty, and £10 million help to develop green technology. We will also invest £1 million in promoting Scottish produce to overseas markets.

“We will continue our extensive investment in growth deals across Scotland, now at almost £1.5 billion, with confirmation of £25 million UK Government funding for Argyll and Bute. Every part of Scotland will be covered by growth deals, with investment to be announced soon for Falkirk and the Scottish islands.”

Following decisions taken at this Budget, notably on funding for health business rates relief and roads, the Scottish Government’s resource and capital budgets in 2020-2021 will increase by over £220m and £410m respectively with a total increase of more than £640m.

The additional funding, when combined with the £1.3bn funding in 2020-21 provided at the Spending Round 2019, results in the largest year-on-year real-terms funding increase for the Scottish Government in a decade.

Further measures announced by the Chancellor can be found in this factsheet.

BUDGET REACTION

Rapid joint engagement is needed on funding for the COVID-19 response in Scotland following the UK Government’s Budget, Holyrood Finance Secretary Kate Forbes said.

Responding to the UK Budget, Ms Forbes said: “While I’m pleased to see the UK Government’s economic response to coronavirus following my calls for this at the UK Treasury yesterday, we need confirmation on what this will mean for Scotland.

“We require urgent clarification on what funding Scotland will receive from the announcements made by the UK Government, at a time when the prospects for the economy and public finances remain very uncertain as the short term impacts of COVID-19 unfold.

“It is vital that our businesses, employees, health service and the most economically vulnerable in our society are all protected through this time, and this additional funding will help us in our response.

“I will ensure that businesses in Scotland are supported and will work with the business community to identify the most effective measures available to us, when we have more clarity on the funding available.

“We expect full consequentials from this additional funding and need urgent clarification to provide clarity for Scottish businesses and NHS Scotland to ensure we can respond effectively.

“The Barnett consequentials announced today are in line with the assumptions that underpinned the Scottish Budget and Budget Bill passed by the Scottish Parliament last week. While this funding is welcome, our resource budget is still lower in real terms than it was in 2010/11.”

Rebecca Long-Bailey, Labour’s Shadow Business Secretary, commenting on the failure to tackle the climate crisis in the Budget, said: “By ducking the bold measures needed to tackle the climate emergency, the Chancellor has blown the biggest opportunity for national renewal since the post-war era, betraying current and future generations.

“This Budget piles investment into new motorways without bringing down the cost of public transport, and offers only derisory support for electric vehicles. There is no sign of the Tory manifesto commitment to invest £9.2 billion to lower energy bills, and the proposal to load the costs of carbon capture and storage onto consumer bills is particularly concerning.

“Elsewhere the Budget sets out a series of measures that seem designed to let our biggest emitters off the hook.

“The Chancellor says people in this country voted for change, but nobody voted for catastrophic climate change.”

Dame Carolyn Fairbairn, CBI Director-General, said: “In deeply challenging times the Chancellor has worked against the clock to deliver two budgets in one: a first for national resilience today and a second for economic ambition tomorrow. It’s a bold Budget at scale, coordinated with the Bank of England, which will help people and business through tough times.

“As the UK responds to the immediate challenge, people are the first priority. So the measures to expand and ease access to sick pay and benefits are vital to protect people’s health and livelihoods.

“The Chancellor’s actions on business rates, emergency funds and loans will help ensure firms can weather the storm, especially smaller firms. Larger firms may also need support as the situation develops.

“Covid19 will bring new challenges daily which will need to be resolved, at speed. “Today’s impressive economic response should now evolve with business insight to become as agile as our approach to public health.

“While the response to Covid19 is urgent, it is very good to see this Budget’s focus on innovation and infrastructure. The Chancellor has listened to many calls from CBI members, with decisive action on vital long-term issues.

“The significant uplift in R&D funding, creation of a UK version of ARPA, a fundamental review of business rates and spending promises on infrastructure will all bring real benefits to people, business and communities.

“The Chancellor has set out some powerful incentives to get businesses investing, increasing the R&D tax credit and the Structures and Buildings Allowance. The £5bn of new export loans will encourage the best of UK business to look to new global markets.

“The next few months will bring opportunities for the Government to make major decisions that they have understandably had to put to one side today. Some gaps still need to be filled in around skills, energy efficiency and powering the UK’s low carbon future.

“Overall, today’s budget is a powerful signal to firms at home and abroad that the UK can and will manage the immediate challenges and long-term opportunities in parallel.”

TUC General Secretary Frances O’Grady said: “The government’s coronavirus plans will leave millions of workers behind. Without urgent action, too many will be plunged into poverty and debt.

“Today’s announcements won’t help the nearly 2 million people who miss out on sick pay because they don’t earn enough. Telling them to turn to the broken benefits system isn’t good enough. We need decent sick pay for all.

“Ministers must now urgently bring together unions and employers to talk about how to support jobs, including through wage subsidies for short time working schemes, and further help for public services – especially social care.”

On investment announcements, she added: “This spending u-turn is badly overdue. The priority now must be to repair the damage of ten years of Tory devastation.

“Helping working families and rebuilding public services must come first. And we need to see concrete action on the challenges of the future.

“This means banning zero hours contracts, sorting social care, ending the UK’s dire regional inequalities, setting out a credible plan to achieve net zero, and getting an EU trade deal that supports jobs and workers across the UK.”

Fraser Sime, regional director for Scotland at Bank of Scotland, said: “The announcement of £1m support towards Scottish food and drink exports is extremely encouraging.

“We have a team of relationship managers that work specifically with this industry across Scotland to support growth, both at home and overseas, and today’s development will further help local firms capitalise on new opportunities.

“With 120 active distilleries in Scotland, the investment of £10m into the research and development of more sustainable practices will assist the industry in reducing the environmental impact of our national tipple. To support this, our Clean Growth Financing Initiative also offers discounted lending to introduce measures to create more renewable energy sources for businesses.”

Jonathan Carr-West, Chief Executive of LGiU, said: “Understandably, this budget was dominated by the Government’s response to coronavirus. No one could argue with that, but for councils across Scotland it provides more questions than answers.

“Social care has been all but absent in the response to Covid-19. Hospitals will not be able to cope if large numbers of older sufferers cannot be discharged because of a lack of social care provision and social care providers will not be able to cope if a fifth of their already stretched workforce is off sick. This could create a dangerous and vicious circle. Mr Sunak promised “whatever it takes” for the NHS, but once again, risks forgetting the symbiotic relationship between health and social care.

“The Growth Deal in Argyll and Bute, help for whisky distillers and support for a campaign to promote Scottish food and drink will be welcomed by local government across Scotland, but many will be concerned that these are only small steps being taken to reverse the decade of funding cuts experienced in Scotland.

“Elsewhere in the budget, announcements on infrastructure, science, further education and research and innovation all look to a longer term future. Local government must have a role to play in making these happen but there remain questions about its capacity to do so after a decade of contraction.

“So, we had a budget designed to cope with an immediate crisis whilst also setting out significant spending and a vision for a long term economic transformation. Councils will be at the front line of our response to coronavirus and will be a crucial player in this transformation. However, local government may feel that it has dropped through the middle somewhat as the Government attempts to get so many other things done.”

Commenting on the UK Government’s Budget yesterday, Scotland Director for CAMRA Sarah Crawford said: “CAMRA welcomes the freeze in beer duty – which is a UK-wide tax – but we want to make sure brewers and pub companies pass on any savings on to pub-goers. 

“In the upcoming review of alcohol taxation we will be arguing for a cut in beer duty for beer served on tap, which would be the best way to support community pubs.

“Yesterday’s Budget also sees cuts and reliefs to the burden of Business Rates for pubs in England. CAMRA is calling on the Scottish Government to introduce further support and pub-specific rate relief schemes here to help our pubs cope not only with the short-term impacts of coronavirus, but also with the year-round effect that business rates have on the ability of our locals to stay open and thrive. We’d also like to see fundamental changes to the Business Rates system to make sure it is fairer to pubs.

“Cutting duty for draught beer in pubs and changing the Business Rates system are both vital steps to saving community pubs across Scotland from closure.”

Nimesh Shah is a Partner at leading accounting and tax advisory firm Blick Rothenberg. He summed the Budget:

“Today marked the first Budget for the new Government, the first for a new Chancellor who has only been in the job a few weeks and the first for almost 18 months. It could, however, be the first of several budgets in 2020.

“In a Budget overshadowed by COVID-19, the Chancellor started by announcing a package of measures aimed at easing the burden for individuals and businesses, including extending Statutory Sick Pay, offering a reduction to Business Rates for small businesses and allowing more time to pay taxes.

“The Chancellor’s hands seemed to be slightly tied, and the only notable change for workers was an increase to the National Insurance threshold to £9,500 providing a £100 annual saving.

“For the first time in 10 years, there was no increase to the personal allowance, which remained at £12,500. In fact, there were no changes to the majority of the personal tax thresholds with the basic rate band, inheritance tax nil rate band and the high-income child benefit threshold all untouched.

“In a measure aimed at appeasing NHS doctors and consultants, the pensions annual allowance will only begin to reduce for individuals with income above £240,000 (currently £150,000). However, at the other end of the spectrum, the minimum pensions annual allowance will be reduced to £4,000 (currently £10,000), affecting individuals with income above £300,000.

“The Chancellor wielded an axe on Entrepreneurs’ Relief without going as far as abolishing it completely. In an overnight move (which has its own complexities), the Entrepreneurs’ Relief lifetime allowance was slashed from £10 million to £1 million, reducing the tax saving to £100,000. Apparently, the reduced limit should only affect 20% of entrepreneurs while raising £6.3 billion for the Treasury in the process over the next five years.

“Entrepreneurs’ Relief has gone full circle, as the limit was £1 million when first introduced in 2008 and worth £80,000. At a time when all UK businesses are facing hugely uncertain futures, it was disappointing that the Chancellor, only a few weeks into the job, decided to make the move without any review or consultation.

“For the first time in many years, there were few changes to property taxes, with the Government moving ahead with a 2% SDLT surcharge for overseas buyers, which will take effect from April 2021 (presumably to encourage overseas buyers to transact before a higher SDLT cost applies).

“However, it’s worth noting that several property tax changes are due to take effect from 6 April 2020, including a reduction to main residence relief, the mortgage interest relief restriction taking full effect and reducing the timeframe in which capital gains tax should be paid to 30-days when selling a residential property.

“The only giveaway for savers was an increase to the Junior ISA limit to £9,000. At a time when the stock markets have tumbled and interest rates cut, pensioners and savers may have been looking to the Government for some help.”

This year’s winners and losers: who will be better off?

George Parker and Harriet James are Assistant Managers at leading accounting and tax advisory firm Blick Rothenberg

Winners

All earners

An increase in National Insurance Contribution (NIC) thresholds is a welcome move for all employees and the self-employed. The threshold will increase from £8,628 to £9,500, resulting in an annual NIC saving of £104 for employees and £78 for the self-employed.

Saving for retirement

From 2020-21, the thresholds used to calculate the tapering of the annual allowance will be increased so that workers with ‘adjusted net income’ of below £240,000 are not affected by the reduced limits.

The annual allowance is the total amount an individual and employer can contribute into their pension fund without incurring a tax charge.

Children under 18 years old

Junior ISA and Child Trust Fund annual subscription limits will increase by £4,632 from £4,368 to £9,000 – a massive uplift.

Losers

Entrepreneurs

Entrepreneurs Relief (ER) Lifetime Allowance will be reduced from £10m to £1m affecting an estimated 20% of business owners. Going forward, only the first £1m of capital gains arising on the sale of an individual’s business will be taxed at 10%, with the remaining gain being taxed at 20%. Harsh anti-avoidance rules have also been introduced, backdated from April 2019.

Top earners

Currently individuals with an ‘adjusted net income’ in excess of £210,000 have their annual allowance tapered to £10,000. From April 2020, the allowance will be tapered to £4,000 for individuals with total income above £300,000. Any excess contributions over the new tapered annual allowance will be subject to tax at 45%.

Companies investment in plant and machinery

The favourable – yet temporary – Annual Investment Allowance (AIA) of £1million will come to an end on 31 December 2020, reducing by 80% to £200,000 per year.

Pensioners

The forgotten in this Budget are pensioners. With no reforms or simplification to Inheritance Tax announced, with the personal allowance and income tax thresholds remaining unchanged, and as they do not pay NIC, inflation will drag more pensioners into higher taxes. Based on forecasted inflation at 2%, many pensioners will be worse off in real terms.