Brexit talks end early for second week running as EU warns of 'significant divergence'

Cat Neilan
·56-min read
Michel Barnier arrived in London on Monday evening
Michel Barnier arrived in London on Monday evening

Brexit talks have finished early for a second week running, despite “constructive” conversations taking place in London.

Although the latest round was due to run until Friday, things were brought to a halt yesterday, it has emerged.  Last week negotiations ended a day earlier than expected.

July had been ear-marked as a period in which “intensified” discussions would take place as both sides seek an end to the impasse on fisheries and the level playing-field.

However German Chancellor Angela Merkel yesterday told the EU to prepare for a no trade deal Brexit on Wednesday, after Boris Johnson told her Britain was "ready" to walk away without an agreement.

There remain "significant divergences" between the European Union and the UK in attempts to seal a post-Brexit trade deal, the European Commission said.

The Prime Minister’s spokesman today insisted the London talks were an “informal round” of discussions. He said David Frost and Michel Barnier both said they had “constructive discussions” earlier in the week.

Read more below.

04:43 PM

That's it for another day

It feels like we are zipping through the week after another busy day in which we were able to further understand the Chancellor's £30bn package, and hear some more good news in terms of gyms, swimming pools and beauticians getting the green light to reopen. 

The Institute for Fiscal Studies had some pointed warnings about his plans, including that the stamp duty holiday is a good stimulus, but will push up prices - meaning first-time buyers will lose out again. 

They also raised the red flag over the "eat out to help out" scheme, saying it seemed unlikely to get to the nub of the problem, which remains capacity and confidence. 

Meanwhile letters sent to Rishi Sunak from HMRC boss Jim Harra before the mini-Budget reveal his own concerns about the uncertainty of what is, after all, an expensive measure. Mr Harra was similarly unconvinced about the efficacy of the furlough bonus. Labour is similarly concerned by what has been termed "deadweight" - support for jobs that might not have been lost anyway. 

You were broadly, but not universally, in support, with 45 per cent saying this deadweight is a small price to pay for saving the economy. However, 30 per cent called for a pre-October review, while 25 per cent said it should be scrapped outright. 

That's it for today. I will be back from 8am tomorrow morning, when we will be hearing from BEIS Committee chair Darren Jones to get his thoughts on the plan for British businesses. 

04:30 PM

Oliver Dowden says public transport should still only be a last resort

Asked about the advice for public transport, which is still only to use for essential journeys, Oliver Dowden says there has been an "intense drive" on other forms of transport such as walking and cycling.

But if there is no alternative, use public transport, he says. 

In London, lots of people use public transport but as you get outside London lots of people use cars, he adds. 

Asked why transport is different to pubs, Mr Dowden says they are "both subject" to social distancing measures. 

"Throughout the reopening we are seeking to minimise risk, do so in a safe way and open up as much as we can," he adds. "It is better to walk or cycle... but if you are not able to, you can use public transport."

He says the Government keeps everything under review. 

04:27 PM

Gym-goers won't have to wear face masks, Oliver Dowden says

Asked if he wears face coverings, Oliver Dowden says he wore one to the Royal Academy this morning.

This question comes after Rishi Sunak was criticised for not wearing one during his photo opp in a restaurant yesterday,

In respect of gyms, he says there are "a lot more extensive measures" but people won't be required to wear face masks. 

The Culture Secretary says the approach we have taken to face coverings is "context specific". 

The most important measures are to wash hands, social distance and if symptomatic to call the hotline, he says. 

04:25 PM

Dowden: I feel let down that BBC isn't funding over-75s licence fee

Asked how he will "support the doubters" that things like swimming will be "a lot less fun than it used to be", Oliver Dowden says he would "love us" to be in a situation where pubs could get back to normal so that "people can crowd around the bar" and "shout". 

But the judgement is that it is "better to reopen with those restrictions than not at all". 

The Culture Secretary says over time people have gained confidence and started to engage more. But the suite of measures announced yesterday incliding the dining discount will also help. 

Asked again about the BBC, Mr Dowden says both the Government and the BBC have said the settlement was good and adds that he "very much regret" that it's no longer free. 

The consultation into decriminalising the licence fee will be announced during the summer, he adds. 

"For the BBC there are lots of challenges, the challenge of ensuring impartiality, respecting all parts of the UK and how the BBC adapts what is a linear model to all these sorts of on-demand services," he adds. 

"I feel let down that the BBC hasn't funded this, I am sure people up and down the country feel let down", he says. "I have made my position clear to the BBC."

04:21 PM

Oliver Dowden stresses science is still at heart of Government decisions

Oliver Dowden says he spoke with Chief Medical Officer Chris Whitty this afternoon, stressing that science is still very much determining measures including social distancing, extra cleaning and better ventilation. 

"As reopening continues, we continue to analyse the evidence and data from it," he says

That is why we are waiting longer for gyms to be reopened, because the lower the community transmission the more risks you can take. 

He is asked how confident he is that the most recent easements are safe, and says "we are confident enough that as we continue on this trajectory by July 25 we will be in a situation where we can open gyms and other facilities", stressing that the Government has always "operated in a cautious and careful way"> 

04:18 PM

Dowden shrugs off suggestion that mass asymptomatic testing could be launched

Oliver Dowden is asked if the Government is moving to a system of mass asymptomatic testing. Mr Dowden says the numbers have been "ramped up", and points to the Test and Trace system which is "contacting tens of thousands of people".

He says this is "the appropriate way to proceed and says this is "an effective regime". 

"We are continuing to keep this virus under control" and have "imposed lockdowns" where there have been spikes. 

He rejects any suggestion that figures were written on "scraps of paper", pointing to the various efforts that have been made since the outbreak. 

04:15 PM

Oliver Dowden 'regrets the decision' about BBC licence fee

Turning to questions from journalists, Oliver Dowden is asked about people "flouting the rules" since measures hav been relaxed.

He says has been "tremendously heartened" by the way people have followed the rules. "Of course, if the virus starts spiking again we will have to take measures", he says. 

Asked if there will be any sanction for those who dn't follow the rules, the Culture Secretary says if there is "clear flouting" the police have powers to disperse groups. 

He is also asked about the BBC's move to drop the licence fees for over-75s and he says he "regrets the decision". 

04:13 PM

Oliver Dowden dodges questions about schools safety

Oliver Dowden is then asked about precautions for children returning to schools in September, and if tests will be available to the entire family if a child has symptoms.

The Culture Secretary says he is "absolutely confident" that the Education Secretary and Prime Minister would not allow children back to schools if it were not safe to do so. 

 Anyone with symptoms should call test and trace, and get that test straightaway. But he doesn't really answer the question. 

04:11 PM

Oliver Dowden challenged on help for high streets

Turning to questions from the public, Oliver Dowden is asked about specific help for the high street. 

The Culture Secretary says she is "absolutely right to highlight the importance of supporting our retail sector". 

He points to the announcements made by Rishi Sunak, the Chancellor, yesterday, including support packages, traineeships and the "eat out to dine out" scheme, which will "encourage footfall" towards shops. 

The stamp duty cut will see "more people going to the shops to refurbish their homes", he adds. 

04:09 PM

Time to get 'match fit' against coronavirus, says Oliver Dowden

From Saturday July 25, people will be able to get back into indoor gyms and swimming pools "and jump on that spin bike for the first time in many months", Oliver Dowden says. 

Firms are being given the "maximum time" to prepare for the new restrictions, which will include time booking restrictions, reduced class sizes, spaced out equipment and enhanced cleaning rules. 

"All of these meaures are conditional and they are reversible", he adds, pointing to Leicester. 

The return of gyms and swimming pools are a "vital" part of our effort to fight coronavirus, Mr Dowden says, saying the nation needs to  get "match fit". 

04:06 PM

Beauticians and tattoo parlours can reopen, Oliver Dowden says

Oliver Dowden notes that things won't go back to normal yet but today's announcement "brings us further to that reality". 

"The more we know about the virus in every setting the safer we will be", he says. 

He also confirms that beauticians and tattoo parlours can reopen from Monday, as can spas and nail bars, although with restrictions in place. 

The Culture Secretary urges people to buy tickets to support local venues and other businesses.

04:04 PM

Theatres, live music and dance venues can reopen from July 11, Dowden confirms

Oliver Dowden is now taking the Downing Street briefing, confirming that as of this weekend, live performances can take place outside. 

Recreational sport will also be able to restart, as will gyms and other facilities as below. 

From July 11, theatres, operas, dance venues and others can put on events. 

Music lovers will be able to attend Glyndebourne, he confirms. 

04:02 PM

Gyms and swimming pools to reopen

Indoor gyms, swimming pools and sports facilities will reopen in England from July 25, the Culture Secretary has announced.

Oliver Dowden said the new guidelines would help the country get “match fit to defeat this virus”, as he laid out a raft of regulations to make workout spaces safe.

Gyms must use timed booking systems to limit the number of people in the building at one time and allow for social distancing, while equipment must be spaced out and cleaned regularly. All facilities have been closed since March 21, to help stop the spread of coronavirus.

Indoor spaces are riskier than customers being outdoors, as the virus can spread through the air in enclosed spaces. Outdoor pools will reopen from July 11.

Mr Dowden also announced that recreational team sports will be permitted to begin returning outdoors from this weekend, allowing different households to participate in training and competitive matches.

“The reopening of gyms is the news millions across the country have been waiting for with many people desperate to jump on a spinning bike or dive into a pool,” Mr Dowden said.

03:47 PM

Further 85 people die across UK, DHSC says

A further 85 people have died with coronavirus across all settings in the UK, Government figures have shown. 

The Department of Health and Social Care (DHSC) said 44,602 people had died in hospitals, care homes and the wider community after testing positive for coronavirus in the UK as of 5pm on Wednesday.

Official figures do not include all deaths involving Covid-19 across the UK, which are thought to have passed 55,000.

The DHSC also said that in the 24-hour period up to 9am on Thursday, there were 642 positive test results. Overall, a total of 287,621 cases have been confirmed

03:45 PM

Oliver Dowden to deliver Downing Street briefing from 5pm

Oliver Dowden is due to start speaking from Downing Street from 5pm, and he is expected to reveal that gyms and other parts of the leisure industry will soon be able to reopen. 

Here's what we know so far. 

03:30 PM

Labour MP shuts constituency office after threats 'drastically escalated'

Labour MP Dawn Butler has shut her north London constituency office after threats against her and her team "drastically escalated". 

The former frontbencher said she had shut her Brent Central premises after staff had been "attacked in the office, verbally assaulted coming and going from work, bricks have been thrown through the windows and the frontage has been smashed".

Spiralling rent costs and challenges around being Covid-secure also forced her to abandon the office, which opened in 2015.

Ms Butler, who ran unsuccessfully for deputy leader, added: "I have had to work extensively with police and security staff to simply try and create a safe working environment for my employees. Many of these incidents were not made public in order to not encourage copycat attacks.

"Sadly in recent months, the threat to myself and my staff has drastically escalated. Last month the police arrested one person and are currently pursuing others as I continue to speak out on key issues such as the impact of Covid-19 on the BAME community, the death of George Floyd and Black Lives Matter. I continue to receive on an almost daily basis threats of violence and death threats."

Dawn Butler 

03:11 PM

BT and Vodafone need at least five years to remove Huawei kit or risk blackouts

BT and Vodafone have warned of widespread mobile phone blackouts unless they are given at least five years to strip out Huawei kit from their networks.

Watch the clip below.

03:06 PM

Rishi Sunak knows his mission is to wean Britain off permanent Covid socialism

Pandemics, wars and national catastrophes pose a particular challenge to free-marketeers. It is not just that they require an enormous dose of centralised, government intervention, policies that are anathema to small-statists in ordinary times.

It is hard to undiscover the magic money tree once its existence has been acknowledged. And yet, that is precisely what Rishi Sunak must now do. 

02:55 PM

No extra funds for locked-down Leicester, minister confirms

here are no plans to make extra financial help available to locked-down Leicester beyond that already in place, a minister has said.

The city became the first place in the country to have tight restrictions reimposed on June 30, after a spike in Covid-19 infections.

Nadhim Zahawi, Business and Industry Minister, said there were "no plans" for any further measures, beyond those, such as furlough and business grants, put in place at the start of the pandemic.

Liz Kendall, Labour MP for Leicester West, said it was "totally unacceptable".

Scott Knowles, chief executive of the East Midlands Chamber of Commerce, called it "a massive mistake", which risked Leicester being disadvantaged by a "two-tier recovery".

02:52 PM

Michel Barnier sounds note of realism as he confirms 'significant divergences remain'

The truncated Brexit talks this week "confirm that significant divergences remain" between the two sides, Michel Barnier has said. 

The chief negotiator sounded a note of realism as he left London after a shorter-than-billed round of discussions in London. 

"Regardless of the outcome, there will be inevitable changes," he tweeted. 

02:48 PM

Have your say: Is the Chancellor dead wrong on deadweight?

The Chancellor this morning admitted there would be "deadweight" to his furlough bonus scheme, something the Institute for Fiscal Studies agreed was inevitable. 

Rishi Sunak said he accepted the "moral hazard" his broad-stroke package came with. But not everyone is so sure. 

Labour MPs have already had their say - have you? 

02:46 PM

MPs deliver demand on action for beauty industry to Boris Johnson

MPs are calling on the Government to reopen the beauty industry, with nail salons and beauty parlours still shut with no timeline of when they can reopen, despite hairdressers being able to do so. 

Caroline Nokes, the former immigration minister, delivered a cross-party letter to the Prime Minister today. 

We are expecting an announcement on remaining sectors including gyms and swimming pools as early as this afternoon - there are high hopes beauticians will be included.  

02:34 PM

Wales mirrors England on air bridges

Tourists from Wales can visit 73 countries and territories without self-isolating on their return after the Welsh Government published its list of air bridges.

The list mirrors the one published by the UK Government for English residents, allowing visits to countries including Cyprus, France, Germany, Italy and Spain, and long-haul destinations such as Australia without having to quarantine.

It also means like England, countries including China, Portugal, Thailand, the Maldives and the US are among notable absentees.

In a statement to the Welsh Parliament on Thursday, First Minister Mark Drakeford said the new regulations would apply from Friday July 10.

He said: "The responsibility for managing UK borders rests with the UK Government. The Welsh Government has, throughout this process, aimed to be constructive in enabling the UK Government achieve its policy objective.

"The UK Government has shared its methodology with us and this has been reviewed by the chief medical officer."

02:22 PM

Universities chief hits back over Education Secretary's speech

The chief executive of Universities UK has slammed Gavin Williamson for positioning "a binary choice between supporting either higher education or further education" in his speech earlier today. 

Alistair Jarvis accused the Education Secretary of making "a mistake" in his comments, arguing: "Both universities and colleges have important and mutually supporting roles to meet skills needs in the post Covid-19 economic recovery.

He added: "The benefits of universities and colleges are felt in local communities across the UK, increasing social mobility, creating jobs and supporting local businesses.”

“Over 40 per cent of courses currently offered by universities have a technical, professional or vocational focus, and are equipping people for vital careers in the public sector such as nursing, to meeting the skills needs of growing industries from robotics to green energy."

02:07 PM

Stay away from Europe, Britons told

Europeans do not want British tourists to visit the Continent this summer, according to a new survey. 

Spaniards are most opposed to the arrival of UK holidaymakers, with nearly two thirds (61 per cent), keen on Britons to stay away this year, 15 percentage points more than any other European nationality. 

In France, Spain, Germany and Italy, only residents from the US and China are less welcome, the research showed. 

You'll get all the latest travel updates here.

01:58 PM

An ideals man: what Rishi Sunak's highly stylised signature says about him

 The MP for Richmond (Yorks) has been Chancellor of the Exchequer for less than six months. 

But over the course of the coronavirus pandemic, as he’s doled out cash left, right and centre, he has risen from ‘Rishi who?’ to ‘Dishi Rishi’ to ‘Robin Hood in a slimfit Topman two-piece’ to ‘both Boris Johnson’s greatest asset and gravest threat’.

And through it all, he’s personally signed off on every penny. Literally.

Guy Kelly wonders what we can learn from Brand Rishi.

01:32 PM

One in 3,900 people have coronavirus, new figures show

An average of 14,000 people in private households in England had Covid-19 at any given time between June 22 and July 5, according to new estimates from the Office for National Statistics (ONS).

This was the equivalent of around 0.03% of the population, or one in 3,900 individuals.

The figures do not include people staying in hospitals, care homes or other institutional settings.

The estimate is based on swab tests collected from 25,662 participants, of which eight individuals from eight different households tested positive for Covid-19.

01:22 PM

Further 22 people die with coronavirus in England: NHS

A further 22 people who tested positive for coronavirus have died in English hospitals, NHS England has confirmed.

That brings the total number of confirmed reported deaths in hospitals in England to 28,991.

Patients were aged between 53 and 94 years old. One patient, aged 77 years old, had no known underlying health conditions. 

The South West was the least-affected region, once again reporting no deaths, while there were two in London and North East & Yorkshire. The East of England reported three deaths, while there were four in the Midlands and South East. Seven deaths were reported in the North West, making that the worst affected region in England.  

01:19 PM

Gavin Williamson scraps target of getting half of young people into university

The Government is scrapping the target to get half of all young people into university, saying the emphasis should be on skills for future work. 

Gavin Williamson, the Education Secretary, gave a virtual speech hosted by the Social Market Foundation in which he "called time on the idea that higher education is somehow better than further education". 

As a result he will "tear up the target to send 50 per cent of young people to university".

Mr Williamson said further education was "central" to the Government's mission of levelling up, emphasising further education, apprenticeships and university all as equally valid routes to productive employment.

You can watch the speech below. 

01:08 PM

Our economy has been a jobs machine, so it's hard to see what Rishi was trying to fix

Rishi Sunak made the latest of his much-heralded Covid-19 crisis economic statements yesterday.

This time the centre-pieces were a series of measures to create jobs and a 50 per cent subsidy for eating out at restaurants on Mondays to Wednesdays in August.

But, as Andrew Lillico writes, it’s tough to see what the government thinks is the problem it is trying to solve. 

12:52 PM

Lobby latest: No plans to update guidance on outdoor gatherings

Downing Street said there are "no plans" to update guidance on the size of outdoor gatherings in England, despite the law allowing up to 30 people to meet.

The Prime Minister's spokesman confirmed that the six-person or two household limit was just "guidance", but said: "It is there because that's what scientific and medical advice suggests is a sensible, precautionary number.

"We're trusting the public to exercise their common sense and to follow our advice just as they have done during the pandemic."

Asked why there was a gap between the law and guidance, the spokesman said: "The law... allows police to use their enforcement powers for any gatherings over 30 unless there is an exemption listed in the regulations."

12:46 PM

Lobby latest: UK border policy is 'WTO compliant', Downing Street insists

The UK's border policy is World Trade Organisation-compliant and plans are "well underway", Downing Street has said.

It comes after Liz Truss warned Boris Johnson that his Brexit border plans could damage the UK’s international credibility and may be subjected to a World Trade Organisation challenge.

The Prime Minister's spokesman said the introduction of new border controls are "well underway".

He said the UK will have "full controls in place" on controlled goods from January 2021. The Government will use our "existing HMRC regime to monitor and tackle" anyone who attempts to smuggle goods across the border.

The Irish border

12:44 PM

Lobby latest: Prime Minister to set up parliamentary committee for Russian interference

Downing Street has confirmed that on Monday MPs will vote to approve membership of the key parliamentary committee looking into the long-awaited report on alleged Russian interference in UK politics.

The nominations for the Intelligence and Security committee - which has not sat since before the December election - will be set out at around 5pm today.

The Prime Minister's spokesman said the publication of the ISC report will be a "matter for the new committee but we would encourage them to publish it as soon as possible".

12:42 PM

Lobby latest: BBC has made 'wrong decision' on free TV licences

Downing Street has blasted the BBC for making "the wrong decision" to start means-testing licence fees for the over-75s

The Prime Minister's spokesman said: "This is the wrong decision. We recognise the value of free TV licences for over 75, and believe that they should be funded by the BBC.

"It is the BBC which is responsible for the administration of the over 75s concession, but we're clear that this is the wrong decision.

"I think the Prime Minister has always been very clear in the past as to what he believes is the right course of action. And that is the BBC continuing to fund free TV licences for over 75s."

Number 10 thinks the BBC should continue to fund licence fees for the over-75

12:39 PM

Lobby latest: Sir Mark Sedwill payment 'appropriate', Number 10 says

Downing Street has said Sir Mark Sedwill's golden goodbye payment of nearly a quarter of a million is "appropriate".

The UK's top civil servant will receive a payout of almost £250,000 when he steps down in September.

Downing Street says that by splitting the Cabinet Secretary and National Security Advisor role, Sir Mark stepped down "before the end of his tenure".

The Prime Minister's official spokesman said: "It's therefore appropriate that Mark is compensated in line with the civil service compensation scheme. This is in line with the normal rules governing civil service pensions compensation."

Sedwill is stepping down in September

12:38 PM

Rishi Sunak refuses to rule out permanent cut to stamp duty

The Chancellor has not ruled out the possibility of making permanent changes to stamp duty, after he yesterday revealed a nine-month holiday. 

Asked by Sky News why he would not make the move permanent, Rishi Sunak said "in the first instance" he wanted to see what impact this would have on house buying activity.

12:20 PM

Planet Normal: Allison Pearson and Liam Halligan meet Trevor Phillips

Trevor Phillips, broadcaster, writer and former chairman of the Equalities and Human Rights Commission, joins Allison Pearson and Liam Halligan on Planet Normal.

The former Labour candidate for London Mayor tells Liam why guilt obscures media coverage of racial issues, how he knows what it's like to be randomly stopped by the police, and why he believes parts of the Labour Party just don't care about winning elections.

 

12:08 PM

Lib Dems calls for Russia report to be published before recess as ISC to be convened next week

The Government is expected to table motion on membership of Intelligence and Security Committee on Monday, paving the way for the long-awaited Russian report to be published. 

It is rumoured that former Transport Secretary Chris Grayling could be named chair of the committee. 

But Liberal Democrat MP Wera Hobhouse blasted the "conspicuous" seven-month delay - the longest in the committee's history. 

She added: "I am glad the committee is due to be restored. However, it should never have needed this fight. The Prime Minister has a lot to do to claw back public confidence.

“At the top of the list for the intelligence committee must be forcing the Government to publish the report into Russian interference of our democracy, and before the summer recess so MPs can scrutinise it.

“A failure to do so would damage the UK’s standing in the world and continue to raise further questions about the Conservative Party’s deep connections to Russian oligarchs.”

11:59 AM

First furlough fraud arrest made

A 57-year-old man has become the first person to be arrested in connection with an alleged fraud of the Government furlough scheme.

HM Revenue and Customs (HMRC) said it had arrested a male from Solihull, West Midlands, on Wednesday, in connection with allegations of a £495,000 fraud of the Coronavirus Job Retention Scheme.

HMRC added it was the first such arrest to happen.

Officers executed a search warrant, seizing computers and other digital devices, while funds held in a bank account relating to the arrested man's business have been frozen.

11:57 AM

Gyms to reopen next week, beauty salons to follow

Gyms will reopen next week, the Government is expected to announce today, with swimming pools, nail bars and beauty salons likely to follow later this month.

Oliver Dowden, the Culture Secretary, will make an announcement on indoor gyms “imminently” with the target date set for mid-July. Read the full story here.

11:54 AM

DCMS committee chair slams BBC licence fee 'body blow'

The chair of the Digital, Culture, Media and Sport Committee has said the BBC's decision to scrap free licence fees for the over-75s will be "a body blow" to British pensioners.

Julian Knight said he had hoped the coronavirus-related delay in the measure would "lead to the Government and BBC coming together in order to thrash out a fresh deal. However, that has clearly not happened."

The Conservative MP added: "This mess is a result of a poor decision struck by the outgoing Director-General and now Britain's pensioners are having to pick up the cost.

"The BBC wants people to be reassured that they can use an online 'Covid-safe' payment system to buy their licence. This takes little account of those over 75 not online, many of whom have only just been allowed to leave their homes and who might still be afraid to do so."

11:52 AM

Top MoJ civil servant latest to leave Whitehall

The Ministry of Justice's permanent secretary is to leave Whitehall this summer when his contract ends, the department has confirmed.

Sir Richard Heaton is the latest in a string of senior civil servants to depart from their roles this year.

He will step down after a five-year tenure and nearly 30 years in the civil service, having previously confirmed his term was due to expire in August.

Last month he told the Commons Public Accounts Committee: "Whether or not I will continue beyond that will be the subject of an announcement, I dare say, in due course."

Downing Street was rumoured to have retroactively vetoed an agreed extension to Sir Richard's term, according to unverified media reports.

The news comes as it emerged Sir Mark Sedwill is receiving a golden goodbye worth almost £250,000 amid reports of clashes with the Prime Minister's chief aide, Dominic Cummings.

11:39 AM

Scotland lockdown relaxed but Sturgeon warns of 'moment of real danger'

Up to 15 people from five different households will be allowed to meet outdoors in Scotland from Friday, the First Minister said, as long as social distancing is adhered to.

A maximum of eight people from three different households will also now be able to meet indoors, Nicola Sturgeon said.

She said people should "savour" the moments including the "first-non-amateur haircut in months", but warned this was a "moment of real danger". 

Ms Sturgeon described the change as "one of the highest risk changes we have made so far".

She added: "We know that the risk of transmitting the virus indoors is significantly higher than it is outdoors.

"So it is essential that we all take great care and strictly follow all of the public health advice."

Couples who do not live together will now be able to meet without physically distancing, regardless of their living arrangements.

11:35 AM

John Lewis closures underline 'missed opportunity' of mini-Budget, says Labour

Labour has said the announcement that John Lewis will shut eight stores underline the "missed opportunity to protect jobs" in yesterdays' mini-Budget. 

Lucy Powell, shadow minister for dusiness and consumers, said it was "deeply worrying news" for staff and the towns affected, saying it demonstrated the "dangers facing our high street" in light of public health measures.  

She added: “The Chancellor’s statement was a missed opportunity to protect jobs with properly targeted support for the businesses and people that need it.

“Ministers must acknowledge that different parts of our economy face very different challenges in the months ahead and come forward with a real plan to protect jobs in sectors fully closed or only partially reopened, and develop an urgent programme to boost retailers and save our high streets from becoming ghost towns.”

Andy Street, the former managing director of John Lewis and now West Midlands mayor, said shutting the Birmingham store "risks being a dreadful mistake".

11:27 AM

Scotland to move into third phase of roadmap out of lockdown: Sturgeon

Scotland will move to the third phase of its four-step plan to ease out of lockdown, First Minister Nicola Sturgeon has told the Scottish Parliament.

It comes as she confirmed there had been no new coronavirus deaths in the last 24 hours. 

A total of 2,490 patients have died in Scotland after testing positive for coronavirus, no change on yesterday's figure.

Ms Sturgeon told MSPs that all six criteria set out by the World Health Organisation had been met with the advent of air bridges between different nations announced on Wednesday.

However, she said that one of the criteria, managing the risk of importing cases of Covid-19 from outside Scotland, gave the Scottish Government "pause for thought".

She said: "The balanced decision we announced yesterday on air bridges was essential for us to conclude, at this stage, that we are managing that risk in an effective and proportionate manner.

"However, it is essential that we keep this risk under close review. And, to be clear, this must cover the possibility of importation from other parts of the UK, as well as from overseas."

11:12 AM

BBC scrapping free licence fee for over-75s from August

The free TV licence for over-75s will be means-tested from August 1, the BBC has said.

BBC chairman Sir David Clementi said: "The decision to commence the new scheme in August has not been easy, but implementation of the new scheme will be Covid-19 safe. The BBC could not continue delaying the scheme without impacting on programmes and services.

"Around 1.5 million households could get free TV licences if someone is over 75 and receives Pension Credit, and 450,000 of them have already applied. And critically it is not the BBC making that judgment about poverty. It is the Government who sets and controls that measure.

"Like most organisations the BBC is under severe financial pressure due to the pandemic, yet we have continued to put the public first in all our decisions. I believe continuing to fund some free TV licences is the fairest decision for the public, as we will be supporting the poorest oldest pensioners without impacting the programmes and services that all audiences love."

The BBC agreed to take on responsibility for funding the scheme as part of the charter agreement hammered out with the Government in 2015.

The broadcaster was due to introduce means-testing at the start of last month, but it was delayed until August because of the coronavirus.

11:02 AM

Why Labour should be worried about Rishi Sunak

Labour has spent the morning attacking the Government for spending too much when it comes to supporting workers and businesses through the pandemic-induced recession. 

As Michael Deacon points out Rishi Sunak isn’t a typical Tory chancellor... and Labour don’t know what to do about him.

10:50 AM

Tories are about to repeat the lethal mistake that cancelled New Labour

Boris Johnson’s government is already out of touch. This is the big revelation of an otherwise alarmingly unsensational coronavirus mini-Budget.

From green jobs and youth placements to 10-quid restaurant vouchers, Downing Street’s rescue plan feels like something scrawled on the back of Time Out in a Hoxton cafe-cum-bikeshop. 

In fact, the Conservatives are about to repeat the lethal mistake that cancelled New Labour, Sherelle Jacobs warns.

10:41 AM

High risk workers will be tested for coronavirus without symptoms: DHSC

Thousands of people who work in high-risk occupations, such as taxi drivers, cleaners and shop workers, will be tested for coronavirus as part of a new pilot even though they have no symptoms, the Department of Health and Social Care has announced.

The Department of Health and Social Care (DHSC) said the testing, which begins immediately, would improve understanding of the prevalence of the virus among those who are judged to be at higher risk.

Firms included in the trial include taxi firm Addison Lee, BT, services firm Mitie and pharmacy giant Boots. Local authorities in Bradford, Newham, Brent and Oldham will also select groups of people deemed to be high-risk.

The DHSC said each business will receive thousands of tests for staff via home-testing delivery or a mobile testing unit.

Workers will be regularly swabbed as part of efforts to determine the extent of asymptomatic transmission of coronavirus. 

It comes as the Government announces the latest Test and Trace figures - see below for the details. 

10:38 AM

Downing Street to hold press conference today

There will be a press conference later this afternoon, Downing Street has confirmed. 

There are no further details yet but I will let you know who will be taking it as soon as possible. It's probably safe to assume it will be at 5pm as usual. 

This could be the much-anticipated announcement about reopening other parts of the economy, including gyms and beauty parlours, which we have been expecting this week.

10:35 AM

No improvement to Test and Trace turnaround time

Just 1.8 per cent of people who took a Covid-19 test using a home test kit in the week ending July 1 received their result within 24 hours, a slight drop on last week, despite Downing Street promising a faster turnaround as it seeks to improve the Test and Trace system.

A total of 68.9 per cent of people received their result between 24 and 48 hours after taking the test, up from 55.1 per cent in the previous week.

Some 23 per cent waited between 48 and 72 hours for their result (down from 35.2 per cent in the previous week) and 6.2 per cent had to wait more than 72 hours (down from 7.4 per cent).

Across the five-week period of Test and Trace, 1.4 per cent of people using a home test kit received their result within 24 hours, 32.2 per cent between 24 and 48 hours, 52.1 per cent between 48 and 72 hours, and 14.1 per cent after 72 hours.

The figures come amid calls for a public inquiry into the system, as it emerged £10bn had been spent on Test and Trace, with a further £15bn going on PPE.

10:17 AM

Keir Starmer attacks furlough bonus scheme saying UK 'can't afford deadweight'

Labour leader Sir Keir Starmer has accused the Government of not being sufficiently focused in its approach to the recession, saying the country "can't afford deadweight".  

Speaking during a visit to Harlow he said: "We are living through an unprecedented crisis so the Government is right to act. Our concern is that the action they have taken isn't focused on the right places.

"The Job Retention Bonus is a bonus for all jobs - many of those jobs, many of the people would have been brought back in any event.

"Some are really at risk of losing their jobs, so we say it should have been targeted in the areas that most need it, not across the piece.

"The Chancellor has admitted there is a deadweight in his package - we can't afford deadweight, we need the money to go where it is absolutely needed most and that's those jobs that won't be retained if the Government doesn't support them."

09:57 AM

Have your say: Is the Chancellor's deadweight dead wrong?

HMRC has warned of "uncertain" value for money with the furlough bonus scheme, and the Chancellor himself has admitted there will be "deadweight", with businesses receiving £1,000 per member of furloughed staff they keep on until January, regardless of whether they were planning to keep them on or not. 

Should the scheme be reviewed to see if any changes can be made ahead of October? Is it a necessary price to pay to protect at-risk jobs - or should it be scrapped entirely? 

Have your say in the poll below. 

09:52 AM

HMRC warned 'eat out to dine out' scheme was 'highly uncertain' to boost demand

HMRC boss Jim Harra sought written approval from the Chancellor to go ahead with the "eat out to help out" dining discount scheme, because it was "highly uncertain" to boost the hospitality sector. 

As with his letter over the furlough bonus scheme (10:40am) the civil servant asked Rishi Sunak for confirmation he wanted to proceed with the policy because there was such a degree of uncertainty over "future demand for eating out" and the "efficiency of this measure". 

Mr Harra said: "Given the acute urgency of the situation, there is insufficient time to gather further evidence and wider external opinions that might enable me to reach a conclusion.

"By nature, this is a novel scheme meaning there are also particular value for money risks surrounding the level of potential losses that could arise."

He added: " I consider it entirely appropriate for you to make a judgement to proceed in the light of the Covid-19 emergency."

The Chancellor formally directed him to proceed, saying the Government hoped the scheme would incentivise people to return to restaurants and other hospitality firms.

09:40 AM

HMRC boss warned Chancellor of 'uncertainty' over furlough bonus scheme

The most senior civil servant at HMRC warned the Chancellor there was so much "uncertainty" over the furlough bonus scheme he could not conclude it "represents value for money" before it was announced. 

Jim Harra, chief executive of HMRC and the first permanent secretary of the department, wrote to Rishi Sunak the day before the mini-Budget to say he could not formally back the scheme as a result. 

 "The advice that we have both received highlights uncertainty around the value for money of this proposal and it is upon this advice that I have reached my conclusion that I am unable to reach a view that this represents value for money to the standards expected by MPM [Managing Public Money].

"It has proved difficult to establish a counterfactual for this scheme, which depends on the overall cost of the scheme and the number of extra jobs it would protect both of which are currently highly uncertain. That uncertainty also applies to the efficiency of the measure."

The Chancellor replied saying there were "clearly compelling reasons to justify the introduction of the scheme which fall outside the confines of MPM". He warned there would be "acute risk" of further job losses without it, and formally directed the scheme to be taken forward. 

This morning Mr Sunak acknowledged there would be "deadweight" associated with the scheme - something Labour has attacked him for. 

09:32 AM

BoE governor Bailey to appear before Conservative MPs next week - reports

Andrew Bailey, the governor of the Bank of England, is expected to appear before the 1922 committee of backbench Tories next week. 

Mr Bailey had been due to appear yesterday, but this was hastily rescheduled amid suggestions it could call into question the BoE's independence.

Both sides insisted the meeting had been arranged prior to the scheduling of Rishi Sunak's mini-Budget.

09:18 AM

Stamp duty holiday effective stimulus - but it will push up prices, says IFS

The Chancellor's stamp duty holiday is likely to push up house prices and leave first-time buyers losing out, the Institute for Fiscal Studies has warned. 

Helen Miller said the original freeze for first-time buyers was effective and did not increase prices because it was more targeted. 

But deploying the measure across the whole market meant it was "more likely prices will rise and first-time buyers will be left keeping less of the discount", she warned. 

However the move itself is a "pretty effective stimulus", she added.  But as it concludes in March, the measure ends too soon and could cause a depression in the market. 

Ms Miller says overall the Government has "moved too soon" on these measures. 

09:11 AM

Include take-aways in dining discount, IFS says

The Institute for Fiscal Studies has raised a warning over some of the Chancellor's schemes announced yesterday. 

Helen Miller, the deputy director at the IFS, has warned that the discount dining support unveiled is "poorly targeted" because "the kinds of people who are going out aren't the kind who have been affected by the crisis".

She also asked was whether the issue was a problem with demand, due to people not wanting to go out, or supply, with businesses unable to accommodate customers due to social distancing constraints.

She called for take-away restaurants to be included saying it is "a bit odd" to have excluded them, effectively making them more expensive than eating in, and hurting firms who have capacity constraints. "There is a strong case there to modify that scheme," Ms Miller says.

There is also a "serious issue" about possible fraud in the voucher scheme, she warned.

The VAT cut will help firms, but those who will benefit most will be those who are operating as close to normal, so it won't help those who are struggling already.  

And she warns the VAT cut, due to end in January, could be ending too soon. At that point "the economy will still be weak, so it would be a good time to introduce fiscal stimulus, rather than end it". 

09:08 AM

It will take decades to get UK debt back down, IFS warns

It will take "decades" to manage the UK debt back down to pre-coronavirus crisis levels, IFS deputy director Carl Emmerson has warned.

He said: "The Chancellor also said in his speech yesterday that over the medium term we must and we will put our public finances back on a sustainable footing.

"Now what I think that means is that once we're through the crisis phase, once the economy has established its new normal, we are probably going to find that the economy is not as big as what it would have been had the coronavirus never hit.

"If that's the case, and it's very likely to be the case, revenues will still be depressed, and if we want to try then to bring the deficit back to where it would have been absent the crisis we will need to do some spending cuts, or given a decade of austerity, perhaps more likely some tax rises."

Mr Emmerson said managing the elevated debt from the crisis would be a task "for not just the current Chancellor, but also many of his successors".

"It's going to take decades before we manage that debt down to the levels we were used to pre this crisis."

09:02 AM

Have your say on: the Chancellor's 'deadweight' support

We seem to have gone through the political looking glass: Labour is attacking the Government for giving too much financial support, while the Chancellor is shrugging it off as a necessary consequence of the crisis. 

At the heart of the debate is 'deadweight' - funding for jobs that would not have been at risk anyway. Rishi Sunak this morning acknowledged his furlough bonus scheme, in which employers are rewarded with £1,000 for all furloughed staff that are kept on in continuous employment until January, will contain deadweight. The Institute for Fiscal Studies has concurred. 

Mr Sunak claims the speed at which he has had to move made it inevitable - but Labour argues he's had plenty of time to come up with something more targeted. 

What do you think? Have your say in the poll below

08:53 AM

Labour attacks Rishi Sunak over 'deadweight' in furlough bonus

Labour has attacked Rishi Sunak over suggestions there will be 'deadweight' as a result of the furlough bonus, which rewards firms for keeping furloughed staff on until January. 

The Chancellor acknowledged this morning there was "no question" there would be deadweight as a result of the measures, but said the lack of a more targeted approach was because of the speed, scale and size of the crisis. 

However Bridget Philipso, Labour’s shadow chief secretary to the Treasury, said: “The Government have had months to prepare for the end of lockdown and design targeted support to protect jobs - but instead we have an on-the-hoof fix that the Chancellor himself admits risks wasting billions of pounds of taxpayer money. 

"Hard-pressed sectors where thousands of jobs are at risk, like aviation, oil and gas, and tourism, will be missing out on the help they need while companies who are returning to normal get public money they don’t.

"The Chancellor should be targeting support on those who need it, not handing it out aimlessly to those who don’t. It’s not brave to admit the Government plans to waste billions at a time when others are crying out for support.”

08:49 AM

Tax rises very likely as coronavirus pushes UK debt to record highs

Tax rises are "very likely" as the country looks to pay off the escalating debt caused by coronavirus, the Institute for Fiscal Studies has said. 

Carl Emmerson, the IFS' deputy director, said the package announced so far was historically very large, noting that debt as a proportion of GDP will be higher than the last 300 years, excluding the two world wars.

And it was likely to be added to, he noted, saying that is "not a criticism - it is important the Chancellor remains nimble".

"It would be surprising if this was the last word", he added. But "once we are through this, tax rises are very likely".

His colleague Robert Joyce noted that deadweight - where money is spent saving jobs that weren't actually at risk - is "inevitably large". The Chancellor acknowledged this was the case earlier today.

08:41 AM

Watch live: Institute for Fiscal Studies analyses Rishi Sunak's mini-Budget

The Institute for Fiscal Studies is delivering its analysis of the Government's spend on the coronavirus crisis, which is up to almost £190bn so far. 

It is "a huge injection support", the IFS says - but will it do what it needs to? 

Watch the live stream below - I will be posting the most interesting comments as they come.

08:29 AM

What's on the agenda today

It's shaping up to be another busy day, having started with a broadcast round from the Chancellor. 

We are expecting the Institute for Fiscal Studies' analysis of his package imminently. Meanwhile in the Chamber, DCMS questions are about to get underway.

Right now, senior UK executives from Huawei are speaking to the Commons Science select committee regarding the Chinese tech giant's role in Britain’s 5G networks. Representatives from Samsung, Vodafone and BT are also giving evidence. 

Business Secretary Alok Sharma will appear before the Beis committee from 10am.

At 11am, the weekly test and trace data to be published - which comes on the back of a damning report from Sky suggesting the numbers have been fudged.   

At midday, Education Secretary Gavin Williamson will give a speech on Further Education reform. 

Nicola Sturgeon is expected to announce move to phase three of easing lockdown in Scotland during her daily press conference, which kicks off at 12:30pm.

We are also expecting to see Labour leader Sir Keir Starmer on a factory visit. 

08:17 AM

Lords write to Brandon Lewis over Committee no-show

The Lords EU Committee has written to Northern Ireland Secretary Brandon Lewis, to complain at "the lack of engagement" from his department when it comes to discussing the border protocol which will come into force from January. 

The Committee is demanding that a minister appear before the recess, to discuss plans for the business community.

Michael Gove appeared in May, but said responsibility for engagement with businesses in Northern Ireland lay with Mr Lewis. 

The Committee has since made repeated requests to the Secretary of State to give evidence to the Committee, but "these requests have been refused, at least until after the August recess".

It comes after a letter written by Liz Truss, warning about four key areas of concern” over their plans for the border next January, was leaked. You can read the full story about that here. 

08:12 AM

Rishi Sunak apologises to workers who have fallen outside Government schemes

Rishi Sunak has apologised to workers who have not been reached by the Government during the crisis, including freelancers. 

The Chancellor was asked repeatedly about support for those who fall outside existing schemes yesterday, with cross-party MPs campaigning for those who have been excluded so far. 

But he told Times Radio: "Over a million businesses have benefited, for example from the furlough scheme a million businesses have accessed some of our loans, almost a million businesses have got access to cash grants or business rates holidays.

"So clearly the scale of what we're doing is reaching a lot of people. Is it going to reach absolutely every single person and every single company in exactly the way they would like? I'm sure not and I can only apologise for that."

He also apologised to freelancers who feel left behind by the support schemes.

"Does everyone feel that they've been helped in the way that they would like to have been? Of course not and I can only apologise for that."

07:56 AM

People 'sitting on furlough forever' will see 'skills fade', warns Rishi Sunak

People "sitting there on furlough forever" will see their skills fade, the Chancellor has warned.

Rishi Sunak told the Today programme: "Fundamentally we have to get our economy back to normal: we can't sustainably have a system where Government subsidise jobs and the only way that those jobs exist.

"That's not fair either to the taxpayer but also to those people who are then trapped in a job which only exists because of that subsidy.

"We're not doing those people any favours by not allowing them to get the skills they need to find a new opportunity - just sitting there on furlough forever means their skills fade and they lose that opportunity to move on to a different job."

07:39 AM

If people poke fun at 'Brand Rishi', so be it, says Chancellor

Rishi Sunak has said the deluge of announcements using his personal branding is "to get the message across to as many people as possible" saying he is just "trying to do my bit".

Asked about "Brand Rishi"  - which many see as laying the groundwork for a future leadership bid - the Chancellor says "this is about communication, and the way we communicate is changing. 

"I am keen to get our message across to as many people as possible and if that means they poke some fun at me in the process so be it."

The tee-totaller laughed at the suggestion the branding looked as though he was launching a range of rose wine, and told BBC he was "trying to bring some cheer". 

There is an example of the teasing below after his not-so-smooth waiting in Wagamama last night.

07:32 AM

Rishi Sunak hints at tax rises as he says 'difficult decisions' will be made

Rishi Sunak has hinted at tax rises in the long term, as the Government looks to pay for the total cost of coronavirus which stands at around £200bn.

The Chancellor told the Today programme: "Longer term, we will and we must return our public finances to a sustainable position over the long run.

"We are able to borrow at record low interest rates, that allows us to carry higher rate of debt, but we must remain alert to changes... I think it's too early to speculate, and much as people would like to draw me into writing future Budgets.

Challenged on the fact he hasn't rule it out, he repeats the line that he "won't write future budget now" but says: "Let's try to have as strong a recovery as possible... to minimise long term damage and scarring on our economy 

"Yes over the medium term the right thing for the economy will be to have sustainable and strong public funances.

"I will make the decisions required, difficult though they may be."

07:22 AM

No NICs cut because it's a 'particularly blunt instrument', says Rishi Sunak

Rishi Sunak has said he didn't cut National Insurance contributions further because many of the most affected companies are "largely exempt". 

He said payroll taxes and NICs was a "particularly blunt instrument" because of changes already brought in by the Government.

The Chancellor told Radio 4's Today programme that there had been targeted help for sectors were the work was "disproportionately done by younger, women, BAME communities". 

"So for me there was an imperative to try and act to protect those 2m jobs, so 'eat our to help out' discount and VAT cut will help in that regard and try to protect as many of those 2m jobs as possible."

07:17 AM

Rishi Sunak admits 'deadweight' and 'moral hazard' to broad package of support

Rishi Sunak has said "without a question there will be deadweight" as a result of the broad support package he unveiled yesterday, with some employers getting the furlough bonus who had already planned to retain workers.

The Chancellor told Today programme the £1,000 bonus for firms who bring furloughed staff back was "a significant reward and incentive to many many companies up and down the country" which will really "make a difference". 

He added: "In an ideal world you would do everything in incredibly targeted fashion... without a question there will be deadweight, there has been deadweight.... there is some degree of moral hazard."

The severity, scale and speed of the crisis "demanded a different response", he added. "We did not have the luxury of being able to design something that would target people."

07:11 AM

Chancellor has 'balance wrong' on jobs support, claims Labour

Anneliese Dodds has said Rishi Sunak has "got the balance wrong" when it comes to protecting jobs during the coronavirus-induced recession. 

The shadow chancellor told the BBC's Today programme "the big issue" was whether people who lose their jobs could be "rapidly" re-employed. 

She said: "The data that has been coming out recently suggests that the UK has a very low level of vacancies being advertised compared to other countries.

"I think the Chancellor's got the balance wrong on this, he should be trying to keep people out of the pool of the unemployed until we end up in a situation where we have more jobs being created again."

She added: "Of course we'd support a more active labour market policy when people become unemployed, we've been calling for it, but he does need to do more to keep people out of unemployment in the first place."

07:09 AM

Furlough bonus 'peculiar', says Labour's shadow chancellor Dodds

Labour has said the Chancellor's plan to give businesses £1,000 bonus for every furloughed member of staff kept in work until January is "peculiar", calling for a more targeted approach. 

Shadow chancellor Anneliese Dodds told Radio 4's Today programme: "My major concern with the way Government is proceeding now is that they're withdrawing the job retention scheme [in October] and the self-employed scheme at the same time, right across the whole economy.

"We all know that some sectors are being much more strongly impacted than others, the Chancellor's continuing with that one-sized fits all approach, we would urge him to look again at this, we have been continuously."

Ms Dodds added: "I do find it a little peculiar that we now have this bonus that will be paid to all employers regardless of whether their business are back operating up to full capacity or not.

"We really need to have targeted support, this is a crisis like no other where the impact is very strongly sectoral, we should have had a more sectoral approach from the Chancellor."

07:06 AM

Calls for inquiry after Treasury reveals £15bn cost of PPE

While Rishi Sunak is shaking the magic money tree to try and keep the economy ticking over throughout the coronvirus crisis, it emerged last night that the taxpayer has stumped up £10 billion for the Government’s bungled test and trace system.

Calls for an inquiry mounted after it emerged the taxpayer has also spent an “eye-watering” £15 billion on PPE amid scrutiny of the Government’s procurement process. Campaigners blasted officials for an “enormous waste” of public money after PPE and the NHS’s bungled testing and contact tracing programmes accounted for almost four-fifths of extra health spending.

In total, the cost is equivalent to the entire transport budget and 15 per cent of health spending. You can read all about it here.

07:00 AM

UK entering 'very significant recession', Chancellor warns

Rishi Sunak has said he is "anxious" about the state of the economy, and that the UK was "entering into a very significant recession".

The Chancellor told Sky News: "There are going to be difficult times ahead and... there are forecasts for people predicting significant levels of unemployment. That weighs very heavily on me."

"We acted at the beginning of this crisis to protect as many businesses and jobs as we could, with initiatives like the furlough scheme and the unprecedented support that we have provided to business.

"We did that so that when we emerged from the other side of this crisis we could bounce back as strongly as possible.

"Now that we're there we want to try and make that recovery as strong as it could be, which is why having people out and about, back in restaurants, moving house, renovating homes, installing energy efficiency measures in homes."

06:53 AM

We are through 'acute phase of the crisis', says Chancellor

Rishi Sunak has urged people to make use of his "eat out to help out" initiative, saying jobs are at risk unless economic activity returns to normal.

He told Sky News: "We've moved through the acute phase of the crisis where large swathes of the economy were closed. We're now fortunately able to safely reopen parts of our economy, that's the most important thing that we can do to get things going.

"But we won't know the exact shape of that recovery for a little while - how will people respond to the new freedoms of being able to go out and about again. We have to rediscover behaviours that we've essentially unlearned over the last few months.

"But unless activity returns to normal, those jobs are at risk of going which is why we acted in the way that we did."

06:46 AM

Come dine with Rishi: August dining scheme

Restaurant meals will be subsidised by the Government as part of a radical £30 billion rescue package for jobs and the economy, Rishi Sunak announced on Wednesday.

The Treasury will pay half the cost of eating out, up to a maximum of £10 per head, to tempt “cautious” diners back to pubs and restaurants, which employ 1.8 million people. The scheme will apply from Mondays to Wednesdays for the whole of August.

The Chancellor also cut VAT on hospitality and leisure, temporarily abolished stamp duty on most properties and pledged grants of up to £10,000 for green home improvements.

With the Government’s furlough scheme coming to an end in October, Mr Sunak announced that firms would be given a £1,000 “job retention bonus” for every furloughed employee still in work on Jan 31.

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