Inside Politics: Coronavirus special: Rishi Sunak extends support as economy shrinks fast

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Wednesday 13 May 2020 08:01 BST

Rishi Sunak announces extension of furlough scheme

It looks like we might have some fresh drama on our screens this summer. Britain’s TV and films productions will be allowed to restart – so long as cast members two metres apart, of course. Changed lockdown rules for England means people meeting up one-on-one in parks from today, which inevitably means a fresh bout of social media squabbling over social distancing. The government, meanwhile, is keen minimise drama in the world of work – having extended the furlough scheme and opened up support for the self-employed, as new figures show the toll the virus has taken on the economy. I’m Adam Forrest, and welcome to The Independent’s daily Inside Politics briefing during the coronavirus crisis.

Inside the bubble

Our political commentator Andrew Grice on what to look out for today:

The focus will remain on the economy today. The Office for National Statistics will issue a huge flurry of figures this morning, including GDP in the first quarter of this year, showing the devastating impact of the coronavirus. In the Commons chamber, Boris Johnson and Keir Starmer will do battle at PMQs for the second time, with most MPs zooming in from home. The government is also expected set out plans for a resumption of elite sports, including the Premier League.

Daily briefing

FLEXIBLE FRIEND: People in England are now allowed to meet up with a friend or jog themselves silly. Estates agents can reopen and arrange viewings from Wednesday too, as the government tries to kick-start the housing market. And from 8am this morning millions of self-employed people can finally sign up for grants worth 80 per cent of average profits. It follows Rishi Sunak’s big announcement: the furlough scheme will be extended until October, and employees will continue to receive 80 per cent of their monthly earnings up to £2,500. What does it mean for employers? That’s not entirely clear yet. The chancellor wants businesses to start sharing the cost of the scheme from August, and “greater flexibility” so some workers can be brought back part-time. It comes as the Office for National Statistics revealed the UK economy shrank at the fastest pace since the banking crisis during the first quarter of 2020.

YOUR CHEMIST NEED YOU: The high-street chemist Boots – with the support of the government – is advertising for an army of unpaid volunteers to carry out coronavirus tests, as ministers try to hit their target of 200,000 a day. But the unions aren’t happy, arguing that signing up to work at least 32 hours a week swabbing the noses and throats of people who may be infected for no pay is asking too much. Unison said it took the idea of volunteering “too far”. Business secretary Alok Sharma announced that up to £14m has been made available for the Health and Safety Executive (HSE) to deal with issues arising as more people head back to work. Meanwhile, the Treasury is considering tax hikes and public sector pay freezes to ease the expected burden on the UK’s deficit from managing the crisis, according to The Telegraph this morning.

SCHOOLS OUT FOR SUMMER? The National Education Union – unhappy with current plans for social distancing in classrooms – has reportedly told teachers not to “engage” with the government over the scheduled reopening of primary schools in England from 1 June. The head of the National Association of Head Teachers told MPs it simply wouldn’t be possible to reopen on the basis of government guidance (15 pupils per classroom). Rebecca Long-Bailey, Labour’s shadow education secretary, said there was still “no realistic guidance”, while shadow chancellor Anneliese Dodds said she would not feel happy sending her own children back to school. Elsewhere, health secretary Matt Hancock said it was unlikely that “big, lavish international holidays” would be possible this summer. He also clashed with This Morning host Phillip Schofield – who told the minister new rules allowing people to only see their parents one at a time were “utterly bonkers”.

FAUCI RULES OKAY: Donald Trump has shared support for Elon Musk in reopening his Tesla electric car plant in defiance of California’s lockdown rules. “It can be done Fast & Safely!” Trump wrote on Twitter. More importantly, the administration’s top health adviser Dr Anthony Fauci warned states against re-opening too soon, as he gave testimony in the Senate. Dr Fauci, who tends to simply ignore Trump’s remarks, said governors who want to lift restrictions risk outbreaks “you might not be able to control”. Meanwhile, the poor people who stay up to watch Newsnight were given a rare treat: Robert De Niro appeared on the programme to attack Trump’s handling of the crisis – saying the president “doesn’t care how many people die”.

PUTIN AIDE FALLS ILL: A senior aide to Vladimir Putin has been admitted to hospital after contracting the coronavirus. Kremlin spokesman Dmitry Peskov was sent to hospital in the latest in a series of setbacks for the Russian leader as the nation struggles to contain the growing outbreak. The country has confirmed 232,000 cases of coronavirus, making it the second highest toll in the world after the US. The announcement came a day after Putin announced the easing some of its nationwide lockdown restrictions. Russia’s prime minister Mikhail Mishustin revealed at the end of April he had tested positive for the virus, as have two other government ministers.

FOREVER BLUE: Twitter has told employees they can choose to carry on working from home “forever” after the coronavirus crisis eases. The social media giant – which has 35 offices worldwide and employs 5,000 people – said the past few months had shown workers could operate the infamous hell site effectively from home. “So if our employees are in a role and situation that enables them to work from home and they want to continue to do so forever, we will make that happen,” said CEO Jack Dorsey said to employees in an email. The company also said if people did want to leave home “our offices will be their warm and welcoming selves ... when we feel it’s safe to return”.

On the record

“It’s like Shakespearian … you’ve got a lunatic saying things that people are trying to dance around.”

Robert De Niro bashes Trump on his first Newsnight appearance.

From the Twitterati

“If Rishi Sunak were a Labour politician, Momentum activists would be cheering themselves hoarse.”

The Observer’s Nick Cohen on the furlough extension...

“If Rishi Sunak were a Labour chancellor doing this you … would be labelling the (excellent) furlough scheme a mad Trotskyist hangover from a different century overseen by authoritarians and psychopaths.”

…while Corbynista Aaron Bastani tries to put the boot on the other foot.