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Sunak says practical issues with helping self-employed over coronavirus

Published 24/03/2020, 11:58
Updated 24/03/2020, 13:55
© Reuters. FILE PHOTO: British PM Johnson holds a news conference with Chancellor of the Exchequer Rishi Sunak and Deputy Chief Medical Officer Dr Jenny Harries on coronavirus in London

By Elizabeth Howcroft

LONDON (Reuters) - British finance minister Rishi Sunak said on Tuesday the government was working on measures to help self-employed people in the wake of the coronavirus crisis but that there were issues with the practicality and fairness of so doing.

Last week Sunak announced billions of pounds of help for businesses and took the historic step of arranging government help to pay the wages of employees, giving grants to cover 80% of a worker's salary if they were kept on as staff.

But, critics said it did not provide support for the self-employed, who total about 5 million in Britain compared to roughly 28 million employees, meaning they either had to keep working and flout government advice to stay at home, or lose all their wages.

"There are genuine practical and principle reasons why it is incredibly complicated to design an analogous scheme to the one that we have for employed workers," Sunak said in parliament on Tuesday.

"We need to be confident that can be done in a way that is deliverable and is fair."

He said he could not commit to when measures would be announced until officials had gone through the details, saying millions of self-employed people might not have been impacted or even seen their incomes increasing.

"The ability for the government to distinguish between these people, based on tax returns that are over a year and a half out of date, poses some very significant challenges in terms of fairness and affordability," he told lawmakers.

But, unions said measures urgently needed to be put in place to defence incomes to ensure that restrictions on movement to help contain coronavirus were followed.

"The stark reality is that millions of workers are confused about whether or not they can or should be at work," said Len McCluskey, general secretary of one of Britain's largest unions, Unite.

© Reuters. The spread of the coronavirus disease (COVID-19) in London

"At the same time, the millions of self-employed and insecure workers across the country will dread being sent home because it means that they will have no wage," he said.

Latest comments

The Chancellor is correct and is in the ball. Most self employed folks in the UK don't pay any tax whatsoever as he has seen the figures on tax returns.
I think what he may be talking about is conjecture over some self employed incomes, I.e. those that have declared £30000 to HMRC, when they need 50 grand to feed their real lifestyle
Many Public and private sector key workers get less than £2500 a month therefore get less than those situng at home. Is this fair ? And where did the £2500 come from ? Sick pay is only approx £360 a month
self employed people for the next 6 months should be able to claim ALL of there bills and outgoings as tax deductable
people on cscs construction scheme surely their wages can be estimated and 60% get paid
kind of simple ain’t it. im sure 90% of the self employed would even appreciate 50% of their weekly/monthly wage
The Chancellor is on the ball, most self employed folk in the like tax drivers in the UK don't pay any tax.
Baloo Money. What’s your solution
What a waste of space.
this is your finance minister?!
Yeah, drafted in as a yesman for Boris just before the proverbial hit the fan. So far he's just defaulted to being a *******Gordon Brown, which is at least a step in the right direction.
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