UK Chancellor Rishi Sunak says the economic emergency has just begun. He warned that the epidemic would cause permanent losses to growth and employment. Earlier, the government predicted the biggest economic collapse in 300 years.
Emergency in the economy: The UK economy is expected to shrink by 11.3 per cent this year due to the corona. Even before 2022, there are fears that it is unlikely to return to pre-Covid state. The debt burden of the government is increasing day by day to deal with the economic situation.
The state of emergency in the economy
By the middle of next year, the number of unemployed people will increase to 26 lakh. This means that the unemployment rate will rise to 7.5 percent, the highest since the 2009 economic crisis.
Determining how much would be spent on public services in this situation; Sunak said the government was dealing with an “economic emergency”. He said the government has taken various measures to protect the employment and income of the people and it is still going on. The continuation of these schemes till next March means that another three lakh people will remain unemployed.
Sunak said the salaries of 1.3 million government workers will not increase from next year. However, health workers will not be included. The chancellor said he could not justify the increase when many in the private sector saw their pay cut. However, he said low-paid government workers were being guaranteed a 250 salary increase next year.