In an attempt to revitalise the economy, chancellor Rishi Sunak is planning to slash VAT—a move that the former chancellor Lord Alistair Darling backs. Why does his opinion matter? He also cut the sales tax during the 2008 financial crisis, and is widely credited with boosting consumer spending to revive the economy.
Hopes of an economic bounceback are being tested by growing concerns about rising coronavirus cases. Europe’s largest economy, Germany, has seen its R rate jump to 2.88. Stock markets across Asia and Europe opened this morning in the red, and gold prices have surged to their highest levels since 2012.
Adviser Comment: Volatile times—but remember, any investment in stocks and shares should be seen as longer term. Usually the best thing to do is to hold on and wait for any market recovery.
Lower-income households are twice as likely to have increased their debts during the coronavirus lockdown, according to the think tank Resolution Foundation. Richer families are saving more whilst eating out and holidays are off the menu.
Adviser Comment: If you are struggling with debt, please see our series of articles on managing debt.
Business in the Community—a group founded by the Prince of Wales—has told UK employers to take “urgent action” to support BAME workers. Black people held just 1.5% of leadership positions, despite making up 3% of the population. The report comes a day after the Financial Reporting Council announced that it’s exploring plans to impose new diversity reporting requirements on FTSE companies.
Tomorrow, Boris Johnson is expected to update Parliament on whether pubs, restaurants, hotels and hairdressers can reopen in England from 4th July. Downing street has cautioned that these moves could be reversed if a virus surge is detected.
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