Chancellor’s controversial ‘solution’ for the self-employed

UK borrowing soars amid Covid costs

Chancellor’s controversial ‘solution’ for the self-employed

Chancellor Rishi Sunak’s ‘solution’ for self-employed Britons has already been met with controversial responses.

He has stated that they are to receive up to £2,500 per month, or up to 80% of their average income over the last three years, and that the money will be issued in June at the earliest.

The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.

To qualify, more than half of their income in these periods must come from self-employment.

This follows what was seen as a very generous 2020 budget.

Sunak claimed that this package was “fair” and in line with what was offered to those who are employed by a company:

“The package for the self-employed I’ve outlined today is one of the most generous in the world that has been announced so far. It targets support to those who need help most, offering the self-employed the same level of support as those in work.”

It would appear that the two month wait which was not forced upon those in work was overlocked.

People across the country have reported that they simply will not be able to cope financially until June, and that to receive a lump sum in June will simply be inadequate, because by this point they will have had to borrow.

One woman, who did not wish to be named, said:

“This proposal is a case of too little too late. By June, the business I have spent years building will be heavily compromised. The government are also calculating what we will receive based on profits. I put at least 70% of last years earnings into equipment, meaning I will only be paid the remaining 30%, which is in fact less than I would get on Universal Credit.”

Another man stated that:

“I’ve been self employed for two years. In the first year, I made a massive loss, in the second year the situation began to improve, since when, I’ve committed to a house, I’ve gotten married and I’ve had a child. I’ve always worked hard and payed my taxes. Now I’ve been forced to stop working – it isn’t something I did of my own accord. So, June is fine and well, but who is going to pay my rent, council tax, bills and feed my family until then?”

Sunak added:

“Together with support packages for businesses and for workers, I am confident we now have the measures in place to ensure we can get through this emergency together”

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