Authorities of developed countries have decided to support not only the economic state of their countries but also the financial health of every citizen. The size of the financial aid provided to people and businesses is really tremendous. For example, the budgets of only several federal states in Germany exceed the total amount of aid allocated by the Russian government.
The UK followed Germany's example in this matter. Thus, British finance minister Rishi Sunak has revealed one more recovery plan worth £30 billion ($37 billion). Curiously enough, all the money will be spent to support only the Kingdom’s economy and ordinary people. The aid program includes lower taxes on home purchases, discounts for all citizens to eat out, as well as a cash bonus for employers who do not lay off their employees. Sunak also announced that the jobs retention scheme, which has subsidized wages for 9.3 million furloughed workers, would be tapered down to end in October. A 50% discount for citizens to eat in restaurants is aimed at backing up the hospitality industry. VAT for the hospitality and tourism sectors will be cut from 20% to 5% until January.
The total sum that the UK authorities have already allocated to save the economy from the pandemic’s consequences amounts to £160 billion.
