Updated: Jul 27, 2020
By George Holt
“So, first of all, let me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life, a leadership of frankness and of vigor has met with that understanding and support of the people themselves which is essential to victory”
Those were the famous words said by FDR during his first inauguration in 1933 after a landslide election win the previous year during the great depression. FDR then introduced America to his “New Deal”, that included colossal amounts of public spending, causing divisions in both major parties and one of the biggest political realignments in 20th Century America.
Although the Coronavirus crisis has not gone on as long as the Great Depression and hasn’t caused the same level of economic damage, we’ve still taken a major hit from this virus, economically and in morale. But the so-called “mini-budget” is here to start delivering the UK’s “New Deal” that can begin to heal our country. Let’s break down some of the details of the announcement:
A Job Retention Bonus is a great way to mitigate the risk of unemployment by making it easier for companies to bring back their employees. This will help the potential “cliff-edge” of unemployment coming for people who were initially furloughed, as the furlough scheme will be ending in October. It also casts quite a large net, with it applying to a large variety of income levels. This also has an estimated cost of over £9 Billion, this is a very generous and needed offer to the workers and employers of this country.
VAT Cut for food and non-alcoholic drinks, it is truly pleasing to have a government that
sees the value in tax cuts. Reducing the burden on businesses and consumers. Such a
great cut from 20% to 5% is something that will really help this industry get back on its feet
after how it’s been struggling with the crisis. I hope the Government sees the values in these
tax cuts for the long term and keeps these rates relatively low for the rest of their time in