UK Allocates 46 Trillion Won Budget for COVID-19 Response

▲Rishi Sunak, UK Chancellor of the Exchequer [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The UK government has allocated a budget of 30 billion pounds (approximately 46 trillion won) to revive the economy hit by the novel coronavirus infection (COVID-19).

On the 11th (local time), according to the British daily The Guardian, Rishi Sunak, the UK Chancellor of the Exchequer, announced the first budget after Brexit (the UK's withdrawal from the European Union) in the House of Commons.

The UK government is understood to have prepared this policy in consideration of the possibility that about 20% of the UK workforce may be unable to work due to the COVID-19 pandemic.

First, the UK government will fully cover sick pay for employees of businesses with 250 or fewer employees who enter self-isolation for up to 14 days due to COVID-19.

Additionally, the regulation on sick pay, which was previously applied from the fourth day of sick leave, has been improved to provide payment from the first day.

For certain industries and sizes of companies, the business tax rate will be abolished for this year only. Tax payment deferral measures will also be taken for self-employed individuals and businesses.

The government has allocated an additional 5 billion pounds (approximately 7.7 trillion won) specifically for healthcare services at the forefront of COVID-19, stating it will "pour all necessary support."

Chancellor Sunak acknowledged that the UK economy would be hit by the COVID-19 pandemic but focused on reassuring the public. He said, "Our economy is strong, and the finances are sound," adding, "We will do everything we can to revive the economy."

Meanwhile, earlier on the same day, the Bank of England (BoE) took action to cut the base interest rate. The BoE lowered the base rate by 0.5 percentage points from 0.75% to 0.25%.

This content was produced with the assistance of AI translation services.