Chancellor Rishi Sunak’s Winter Economy Plan may have brought the UK economy back from the cliff-edge. The UK economy faced the very real possibility of tumbling back into recession as the government’s furlough scheme ends in around a month’s time. But it has been replaced by a new jobs support scheme, hopefully in time. Income support for the self-employed has been extended too.
So far though, the markets aren’t impressed. At Thursday’s close (the day the plan was announced), the FTSE 100 index was down by 1.2% and it’s weak as I write on Friday afternoon too. It’s possible that investors may feel more confident by next week, when the full import of the scheme is absorbed. But this will be so only if they are positive on it. As I said, the scheme has received a tepid reception and experts expect that it will not stave off unemployment, only … Read more