Britain unveils fresh $37 billion package to stimulate economy

LONDON: The UK government on Wednesday unveiled a package worth £30 billion ($37 billion, 33 billion euros) to save jobs, help the young into work and kickstart the British economy ravaged by the coronavirus pandemic.

Delivering a mini-budget to parliament, finance minister Rishi Sunak's announced measures including bonuses to companies retaining staff and taking on apprentices, investment in 'green' jobs and even allowing the whole country to enjoy discounted meals in restaurants.

"People need to know that although hardship lies ahead, no-one will be left without hope," said Chancellor of the Exchequer Sunak.

Noting that "people are anxious about losing their jobs, about unemployment rising", Sunak said: "We're not just going to accept this." But he insisted that the government's furlough scheme already in operation to protect millions of private-sector jobs had to end in October. Other measures announced by Sunak include a temporary cut to value added tax on food, accommodation and attractions - and a higher threshold for stamp duty on home purchases to help the construction sector.

Britain has suffered Europe's deadliest outbreak of Covid-19 and a nationwide shutdown led to the worst economic downturn among the G7 leading industrialised states.

Sunak said the UK economy had contracted by 25 percent over the coronavirus lockdown - "the same amount it grew in the previous 18 years".

The chancellor also confirmed £3-billion of green investment, after British Prime Minister Boris Johnson vowed to "build, build, build" out of the economic crisis.

The investment package includes £2 billion in grants for households to insulate homes and make them more energy efficient, and £1 billion for public sector buildings, including hospitals. The plan is part also of Britain's long-term pledge to reduce carbon emissions to net zero by 2050 to tackle climate change.