UK announces raft of measures to boost economy ravaged by coronavirus

British Chancellor of the Exchequer Rishi Sunak has been one of Britain's most popular politicians over the lockdown period. /AP Photo/Matt Dunham

UK finance minister Rishi Sunak warned of economic hardship ahead as he announced the government's plans to protect jobs and mitigate the impact of the coronavirus.

His announcement on Wednesday comes as the UK economy is expected to contract by up to 10 percent in 2020, and fears of sharp rises in unemployment loom when the state's furlough scheme – currently supporting more than nine million workers – ends in October.

Speaking in parliament, Sunak stated: "Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start."

The plan includes:

• A discount worth up to £10 ($12.55) per person for eating out in August.

• A "job retention bonus" for firms that re-employ furloughed workers, worth up to 9 billion pounds ($11.3 billion).

• Companies will receive 1,000 pounds ($1,255) when they take employees off the furlough scheme.

• A 2 billion pounds ($2.55bn) "kick-starter" job-creation scheme, aimed at subsiding young people's labor. The state will pay the minimum wage for up to 300,000 people aged 16-24 for up to six months.

• Stamp duty abolished on homes worth up to £500,000 ($629,000) until next March.

• A VAT cut on tourism and hospitality to 5 percent until January 2021

Anneliese Dodds, of the opposition Labour Party, criticized the announcements, saying Sunak has "put off" many of the big economic decisions until the fall.

"It should have been the day when the millions of British people worried about their jobs and future prospects had a load taken off of their shoulders. It should have been the day when we got the UK economy firing again," she told parliament.

Sunak said he will announce a third stage of his economic recovery strategy in the customary Autumn Budget announcement.