Left Menu
Development News Edition

UK furlough extension to cost much less than spent so far - finance ministry

Speaking to the same parliamentary committee, Britain's top tax official Jim Harra said three arrests had been made so far due to suspicions of defrauding the furlough programme, while 27,000 employers had been invited to "reconsider" their claims. Some 1.2 million employers had claimed from the Job Retention Scheme as of Oct. 18, receiving a total 41.4 billion pounds.

Reuters | London | Updated: 12-11-2020 16:59 IST | Created: 12-11-2020 16:45 IST
UK furlough extension to cost much less than spent so far - finance ministry
Representative image Image Credit: Twitter (@RishiSunak)

The cost of British finance minister Rishi Sunak's decision to extend his COVID furlough programme until March should be "quite a bit lower" than the roughly 40 billion pounds ($53 billion) spent so far, a Treasury official told lawmakers on Thursday.

Asked about a possible further 40 billion-pound cost, Beth Russell, director-general for tax and welfare at the Treasury, said the number of claims were likely to be lower than earlier in 2020. "We wouldn't expect it to be as high as that. Given the restrictions in the spring, and the restrictions that we are now expecting for the next few months, we would expect it to be quite a bit lower than that," she told parliament's Public Accounts Committee.

Britain's Office for Budget Responsibility will publish an official cost estimate on Nov. 25. The finance ministry has been reluctant to give any cost estimate before that. The Bank of England has said it expects 5.5 million workers to be covered by the programme in November, when England is in a four-week lockdown, up from around 2 million in October.

Based on these figures, Reuters has estimated that the extension is likely to cost at least 15 billion pounds, taking total government spending on COVID support measures this financial year above 200 billion pounds. Speaking to the same parliamentary committee, Britain's top tax official Jim Harra said three arrests had been made so far due to suspicions of defrauding the furlough programme, while 27,000 employers had been invited to "reconsider" their claims.

Some 1.2 million employers had claimed from the Job Retention Scheme as of Oct. 18, receiving a total 41.4 billion pounds. Three arrests had also been made linked to the Eat Out to Help Out programme which subsidised restaurant dining in August, Harra added. ($1 = 0.7586 pounds)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

Minimum Support Price should be made legally mandatory, says KC Tyagi

Janata Dal-United JDU leader KC Tyagi on Saturday said it is very unfortunate that the 9th round of talks between farm unions and the Central Government remained inconclusive, adding that efforts should be made to legalise mandatory the Min...

Kerala's Azharuddeen enjoying his moment under the sun, not "worried" about IPL auction

Keralas Mohammed Azharuddeen wouldnt have sat out on the arduous journey to emulate the Mohammed Azharuddin of Hyderabad, if not for a cricket-crazy elder brother and a die-hard fan of the former India captain.From his name to his career op...

Multi-vehicle pile-up on Peripheral Expressway due to fog

Four people suffered minor injuries during a multi-vehicle pile-up due to fog on the Eastern Peripheral Expressway EPE in Uttar Pradeshs Greater Noida on Saturday morning, police said.Nine vehicles, including some cars, got piled-up on the ...

Health experts in Karnataka receive COVID-19 vaccine shots, say its 'safe'

Medical experts who wereadministered the vaccine on the first day of inoculation driveagainst COVID-19 in the country on Saturday, termed theprocess as uneventful and said it was safe and there wasno reason to worry.Today I have taken the f...

Give Feedback