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Rishi Sunak considering giving all UK adults £500 to help boost the economy

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The treasury is considering plans to give adults £500 and children £250 vouchers to spend in the sectors worst hit by coronavirus. 

Resolution Foundation thinktank has drawn up the proposals and has been in talks with the treasury about its ideas that aim to kickstart the economy through highly targeted spending. 

Under the plans, vouchers could be spent in specific sectors such as hospitality, and face to face retail rather than online shopping.

The scheme is similar to successful ones already in place in China, Taiwan and Malta. In Wuhan – where the COVID-19 outbreak is believed to have started – 500 million yuan (£57m) worth of consumption vouchers for use in restaurants, shopping malls, convenience stores, and cultural, sports and tourist venues were issued, the Guardian reports.

The treasury has refused to rule out introducing a similar scheme in the short or medium-term. 

Resolution Foundation claims the proposed idea is more effective at jump-starting the economy than a temporary slash in VAT or on-off cash gifts to individuals, ideas which have been discussed by the government. 

Economists explain that cash gifts will be stashed away into a savings account, particularly in higher-income households, rather than being put back into the economy through spending. 

Similarly, a VAT cut will have less of an impact on lower-income households as they tend to spend more money on VAT exempt items, or reduced/zero-rated goods such as food and drink.

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The thinktank explains that the scheme – if a one-year limit on spending the voucher is put in place – would cost the government £30bn. The proposed idea could be allocated via vouchers or smart cards and transactions carried out on mobile phones. The scheme could also be postponed or closed down in the event of second wave.

The hospitality industry is one of the hardest hit sectors, down more than 90% in April, and many industry experts fear it will continue to be badly hit due to social distancing measures.

James Smith, research director at the Resolution Foundation, said: “Social distancing has huge implications for firms in sectors like retail, hospitality, tourism and leisure that will last into the reopening phase. That is why the jobs of so many workers in these sectors are in the firing line. The chancellor’s recovery package on Wednesday should reflect this unique economic challenge.

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“As well as setting out the biggest ever peacetime job support programme, the chancellor should get Britain spending in places where it’s needed most. A universal high street voucher scheme to be spent only in these sectors would kickstart demand in the right parts of our economy, boost living standards and deliver targeted support to the businesses that need help the most.”

The chancellor is set to outline ‘the next stage in our plan to secure Britain’s recovery’ on Wednesday.

The next stage is expected to include the announcement of an extra £32m for a National Careers Service, to allow a quarter of a million more people benefit from expert career advise. 

Labour has warned of ‘ghost towns’ developing across the country as the latest figures show 80,000 hospitality, leisure and retail businesses missed out on government grants.

Shadow business minister Lucy Powell said: “Unless the government steps up to save the high street many will become ghost towns, with thousands laid off, as a result. Labour is calling on the government to have a back-to-work budget this week, with the focus on protecting and creating jobs.”

This comes with the news that 44% of businesses who have participated in the Coronavirus Job Retention Scheme reported they will have to lay off some, more or all of their furloughed staff when the scheme comes to a close at the end of October.

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Train fares set to increase again in ‘biggest hike’ for a decade

Bad news for commuters…

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Commuters could be facing the steepest rise in the cost of train travel in more than a decade just months after prices were already increased.

It has been predicted today that train prices across England and Wales could rise by nearly 5% before the New Year.

The 2021 rise in prices was delayed as a result of the Covid-19 pandemic when train travel was at an all-time low, however, tickets still saw a price rise of 2.6% in March.

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And this morning, the Retail Prices Index for July 2021 was confirmed as 3.8% by the Office for National Statistics, meaning passengers could see fares rise by 4.8% in 2022, which would be the largest hike since 2012.  

This means that the cost of rail travel could increase twice within ten months, and would see a Manchester-Glasgow off-peak return rise by £6.30 to £94.90, according to Metro.

Though all hope isn’t yet gone – changes to the fares in 2022 are still yet to be confirmed.

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A Department for Transport spokesperson said: “No decision has been made on national rail fares.

“The government is considering a variety of options and we will announce our decision in due course.”

This news has come as train travel in Manchester and beyond is on the rise – earlier this month, we reported that zero cases of Covid were found in Manchester Piccadilly Train Station, despite thousands of commuters using the station’s services as offices reopen.

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Comedian Sean Lock has died aged 58

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Channel 4

Comedian Sean Lock has passed away at the age of fifty-eight after a battle with cancer, his agent has confirmed today.

A statement from his agent from Off The Kerb Productions said: “It is with great sadness that we have to announce the death of Sean Lock. He died at home from cancer, surrounded by his family.

“Sean was one of Britain’s finest comedians, his boundless creativity, lightning wit and the absurdist brilliance of his work, marked him out as a unique voice in British comedy.

“Sean was also a cherished husband and father to three children. Sean will be sorely missed by all that knew him. We kindly request that the privacy of his family and children is respected at this difficult time.”

Fellow comedians have been posting their own tribute messages since the news was announced. Ricky Gervais wrote: “Such sad news. RIP the great Sean Lock. One of the funniest, most influential comedians of a generation. A lovely man.”

John Bishop posted: “I am shocked and saddened at the news of the loss of Sean Lock. He was a brilliant comedian but more importantly he was a great person on so many levels . He will be missed hugely.”

Sean was best known for his role on Channel 4’s comedy panel show, 8 Out of 10 Cats, where he was panel captain. He appeared on the first eighteen series, opposite team captains including Jason Manford and Jon Richardson.

He also appeared on QI, The Last Leg, Have I Got News for You, and The Big Fat Quiz of the Year.

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UK to welcome more than 20,000 refugees following the Taliban’s takeover of Afghanistan

Reports claim that a number of these refugees will be housed in hotels near Manchester Airport

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The UK is set to welcome more than 20,000 refugees from Afghanistan following the Taliban’s takeover of the country.

Prime Minister Boris Johnson announced that 5,000 people will be eligible to be resettled in Britain during the first year of the program, with women and girls given priority status, with the rest to be admitted in the ‘long term’.

Those deemed to be at the highest risk of human rights abuses and dehumanising treatment by the Taliban will also be given priority for settlement. 

The Prime Minister, who will address MPs today on the ongoing crisis in Afghanistan, said: “We owe a debt of gratitude to all those who have worked with us to make Afghanistan a better place over the last twenty years.

“Many of them, particularly women, are now in urgent need of our help. I am proud that the UK has been able to put in place this route to help them and their families live safely in the UK.”

Manchester council leader Sir Richard Leese added that planes carrying people from Afghanistan are expected to land here in Manchester ‘at any moment.’

He said: “They’re on their way. We’re expecting planes to be landing at any moment. We’re certainly not going to turn our back on those people.

“But what we are going to do is to continue to make the case that actually, if we’re really a caring country, we need to make sure we put the proper resources and systems in to be able to support these people very quickly, get them out of hotels and get them into homes.

“We’re definitely not going to be refusing to take people, but we will continue to make the case for proper support.”

Following the departure of American troops on Sunday, the Taliban took over Afghanistan’s capital city Kabul, almost two decades after they were initially defeated by the US. The Afghan President Ashraf Ghani fled the country, abandoning the presidential palace to Taliban fighters.

Under the Taliban’s rule, Sharia Law, women and girls are stripped of most basic human rights, including the right to have an education, work, and leave the house without a male relative. While the Taliban have promised to take a more modern approach to their ruling, concern for the safety and wellbeing of Afghan women and girls is still rife.

For more information on how you can help the refugees fleeing Afghanistan, visit the following links:

British Red Cross
UNICEF
AllWeCan.org
United Nation Refugee Agency 
Refugee Council

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