Beautiful Virgin Islands

Wednesday, Aug 27, 2025

UK government will pay 80% of wages as it closes pubs to fight coronavirus

UK government will pay 80% of wages as it closes pubs to fight coronavirus

The UK government said Friday that it will subsidize the wages of any worker facing unemployment because of the coronavirus pandemic as it ordered the closure of pubs and restaurants to try to contain the outbreak.

Unveiling an unprecedented intervention by the state in the British economy, finance minister Rishi Sunak told reporters that the government will cover 80% of worker salaries for at least the next three months up to a maximum of £2,500 ($2,900) a month, which is more than the average income.

Sunak said the measures would apply to all companies, large or small. The measure was part of a bigger rescue package for British businesses, including tax relief totaling £30 billion and interest-free loans for up to 12 months. A deep recession is looming as activity across the economy grinds to a halt.

In recent days, the UK government has been criticized for not taking the coronavirus outbreak seriously enough, and relying on citizens to practice social distancing rather than simply shutting down bars and restaurants.

Speaking at the same news conference, UK Prime Minister Boris Johnson announced stricter measures to enforce social distancing, including the enforced closures of pubs, restaurants, theaters, cinemas and gyms.

Johnson said establishments would be closed to the public starting Saturday but they could continue to offer food to go. He said he was confident the "tide could be turned" in the fight against the coronavirus outbreak, but people needed to stay away from one another.

Sunak said the government has never had a program on this scale to pay wages and had to build its system "from scratch," he said, adding that "unlimited funding" is available.

The first payments would be made within weeks, with the program fully up and running by the end of April.

Companies and employees will respond with "relief and determination," said Carolyn Fairbairn, the director general of the Confederation of British Industry, a business lobby group.

"It marks the start of the UK's economic fightback -an unparalleled joint effort by enterprise and government to help our country emerge from this crisis with the minimum possible damage," she said in a statement.

Mike Hawes, CEO of the UK's Society of Motor Manufacturers and Traders, said in a statement that the measures will come as a "huge relief" to car companies, their workers and families. He said 99% of the UK automotive industry had come to a halt, meaning "thousands of businesses are counting their future not in months or weeks, but in days."

The measures come on top of programs unveiled by the UK government earlier in the week to support individuals and businesses, including £330 billion in loan guarantees and suspending local business taxes for the retail, hospitality and leisure sectors for 12 months. Mortgage providers have also agreed to delay payments for three months for people affected by the coronavirus.

Britain's rescue package goes even further than similar dramatic interventions unveiled by governments in Denmark and Australia in recent days.

Companies in Denmark that would otherwise be forced to cut staff by 30% or lose more than 50 people will receive government funds to cover 75% of their wage bills for three months, the Ministry of Employment said in a statement on Sunday. The compensation is capped at 23,000 Danish krone ($3,300) per employee.

Australia is giving 6.7 billion Australian dollars ($3.9 billion) to 690,000 small businesses employing around 7.8 million people, Prime Minister Scott Morrison announced last week.


UK recession inevitable

Deutsche Bank economists expect UK GDP to contract by 4% this year, as the economy is hit by weaker global growth, a slowdown in Europe, its largest trading partner, supply chain disruptions and a drop in business activity related to social distancing measures.

If the spread and duration of the coronavirus is larger and longer than anticipated, the economy could shrink by as much 6%, making this "the worst recession for a century," they said in a research note Friday.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×