Sunak to Set Out U.K. Job Support as Virus ‘Out of Control’

U.K. Chancellor of the Exchequer Rishi Sunak will announce a new job support plan for coronavirus hot spots, as tougher restrictions are prepared to try to contain a pandemic the government warned is “getting out of control.”

Sunaks plans, due to be announced on Friday afternoon, are likely to include paying two-thirds of the wages of workers in companies affected by the new measures, which could involve shutting bars and restaurants in areas of England where the disease is spreading rapidly.

Read more: U.K. Plans Emergency Help for Firms Facing Tighter Rules in Days

Rishi Sunak

Photographer: John Sibley/AFP via Getty Images

The resurgence of coronavirus in recent weeks is forcing the government to once again redraw limits on social activity, even as it tries to keep as much of the economy open as possible to limit job losses. It‘s a balancing act that’s becoming ever more difficult, with Public Health England warning the country faces a “definite and sustained” rise in infections.

‘Unbelievably Serious’

The U.K. faces an “unbelievably serious situation” with the pandemic “getting out of control,” skills minister Gillian Keegan told the BBC late Thursday.

The Office for National Statistics said Friday the infection rate almost doubled in the week through Oct. 1, with an estimated 17,200 new cases each day. The highest rates are in northern England, which is expected to be the focus of new restrictions brought in by Prime Minister Boris Johnsons team next week.

Another study, conducted by Imperial College, London, found 1 in 170 people in England had the virus between Sept. 18 and Oct. 5, with 45,000 new infections every day in the period. The report, based on tests of 175,000 volunteers, found an eightfold increase in infections in people over the age of 65 compared with the previous period.

‘Unnecessary Death’

“Our robust findings paint a concerning picture of the growing epidemic across England,” Paul Elliott, a director at Imperials School of Public Health, said in an emailed statement. “While certain areas are worse affected, if left unabated then infection trends will follow nationwide and could lead to high levels of unnecessary death and illness from the disease.”

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This week, Englands chief medical officer, Chris Whitty, met with politicians from northern England and the Midlands to stress the sharp up-tick in the virus, and showed data demonstrating how pubs and restaurants are driving the infection rate.

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Rising Rapidly

Coronavirus infections doubled in England in the week to Oct. 1

Source: Office for National Statistics

Meanwhile hospitalization rates are approaching the level they were at just before the country went into a national lockdown in March, according to Mark Walport, who sits on the governments emergency scientific committee.

‘Increased Risk’

“Any environment, but particularly indoors, that encourages people to mix closely, presents an increased risk,” he told BBC radio.

Since the national lockdown was lifted in June, the government has adopted what it calls a “whack-a-mole” approach, using localized restrictions to try to contain outbreaks. But the strategy hasn‘t reduced infection rates in many areas. Local authorities say that’s at least in part because there was insufficient financial support for people told to self-isolate.

Sunaks original furlough program for paying wages of jobs on pause expires at the end of October, and economists have warned of a wave of unemployment coming in the months ahead.

On Friday, a report showed the U.K.s economic recovery slowed dramatically in August -- a month where virus restrictions were at their lowest and government support for the hospitality industry peaked.

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“The chancellor will be setting out the next stage of the job support scheme later today that will protect jobs and provide a safety net for those businesses that may have to close in the coming weeks and months,” the Treasury said in a statement.

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(Updates with Imperial study in sixth paragraph)