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What Rishi Sunak’s new budget means for people in Greater Manchester

Everything you need to know

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alvariummcr & flokmcr/Instagram

Rishi Sunak has said he wants to be honest about the government’s plans for fixing the public finances.

The chancellor says there has been ‘acute damage’ to the economy, with more than 700,000 people losing jobs and the economy shrinking by 10% – the largest fall in 300 years.

Borrowing has also been as high as during wartime.

He said: “It’s going to take this country, and the whole world, a long time to recover from this extraordinary situation.”

Here are the key points from his 2021 budget announcement….

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Furlough

  • Sunak explains that 1.8 million fewer people are expected to be out of work than previously thought, with the peak at 6.5% down from the forecasted peak of 11.9%.
  • Furlough is set to be extended until the end of September this year, however, firms will be asked to contribute 10% of employee’s wages in July and 20% in August and September as the scheme is gradually phased out.
  • A fourth grant worth 80% of average trading profits up to £7,500 covering February to April that will help self-employed people.
  • The £20 increase in universal credit will extend for six months

Business Support

  • Total cash support to businesses has reached £25bn. A further £5bn restart grant has now been confirmed to help companies get going after lockdown.
  • Hospitality and leisure businesses will pay no business rates for three months, then discounted for the remaining nine months of the year by two-thirds.
  • The 5% VAT cut will be extended to the end of September and gradually increased at 12.5% for six months before returning to the normal rate in April 2022.

David Dixon/Geograph

Housing

  • The stamp duty holiday will be extended on properties up to £500,000 to the end of June. It will return to normal levels from October 1st.
  • Mortgage guarantees were also confirmed to help first-time buyers access 95% mortgages, with just 5% deposits.

Public Finances

  • The government will take a ‘fair’ approach to ‘fixing the public finances’ the chancellor confirms.
  • There will be no increase in national insurance, income tax or VAT.
  • The personal allowance will remain at £12,750 until 2026 and the higher rate will increase to £50,270 next year.
  • Inheritance tax threshold, pensions lifetime allowance, annual exempt allowance from capital gains tax and VAT exemption thresholds will all be frozen.
  • New minimum wage rates come into force in England on April 1st. Basic rate workers will see a 2.2% increase, with the National Living Wage rising to £8.91 an hour.

David Dixon/Geograph

Borrowing

  • The budget deficit will reach £355billion this year (17% of GDP) – the highest level in peacetime.
  • Sunak said: “It’s going to be the work of many governments over many decades to pay it back, just as it would be irresponsible to withdraw support too soon, it would also be irresponsible to allow our future borrowing and debt to rise unchecked.”

Growth

  • The chancellor explains that the economy will recover more quickly than previously thought.
  • GDP will grow by 4% this year and 7.3% next year according to official forecasts.

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Wayne Rooney breaks silence after hotel photos leak online

The photos quickly went viral on social media

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@waynerooney / Instagram

Wayne Rooney has broken his silence after he was pictured with several young women in a hotel in Manchester.

The former Manchester United captain apologised to his family and to the club he currently manages, Derby County.

Rooney spoke to Sky Sports after Derby’s friendly against Real Betis on Wednesday, saying: “I made a mistake.

“I went to a private party with two of my friends and from me, I’d like to apologise to my family and the club for the images which were going round and I want to move forward on this.

“I’m grateful to Derby County for giving me this opportunity to get this club back to where it belongs, and I’ll do everything in my power to make sure I do that.”

He added: “It’s dealt with. I’m looking forward to moving forward and preparing for another game on Sunday.”

Rooney was photographed asleep in a hotel bedroom on the weekend, with the images quickly going viral.

The photos show a fully clothed Rooney passed out in a chair after a night out in Manchester, after he went to the hotel with three women.

Yesterday we reported that the former Manchester United captain was asked for £10,000 to keep the photos hidden from his wife Coleen.

According to reports, the police launched a blackmail probe over a message sent to Rooney on Instagram that included a photo from the hotel and the comment: “Morning Wayne 10 grand please mate or Coleen sees this.”

However, officers have now dropped the investigation after concluding that no offence had been committed.

Станислав Ведмидь / Wikimedia

A Cheshire Police spokesman said: “On Monday July 26th Cheshire Constabulary received reports of a possible blackmail relating to a number of images circulating online.

“Officers have spoken to the person involved and are satisfied that no offences have taken place.

“The person involved has also stated that they do not wish to take the matter any further.”

It’s not been suggested that the women from the photos, Tayler Ryan, Elise Melvin and Brooke Morgan, all aged 21, were knowingly involved in any criminal activity.

As the photos went viral on social media, Rooney’s legal team contacted Greater Manchester Police, before the case was passed to Cheshire Police.

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Tesco offers lorry drivers £1,000 joining bonus amid HGV crisis

There is a chronic shortage of drivers in the industry at the moment

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The ongoing shortage of HGV drivers has seen supermarket shelves empty across the country, with Tesco recently revealing the shortage in drivers is resulting in forty-eight tonnes of food waste each week as fresh goods are being left to rot.

Now the supermarket has stepped up in its bid to entice more drivers to come forward, with a £1,000 joining bonus up for grabs.

Tesco will be offering the £1,000 incentive to recruits who join before September 30th.

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Similar recruitment incentives are also being offered by other companies for HGV drivers, it’s understood, with Morrisons saying it was working on training staff to become lorry drivers.

The Road Haulage Association (RHA) estimates there is currently a shortfall of up to 100,000 lorry drivers in the UK – and as well as this issue, the coronavirus pandemic and Brexit are also being blamed for shortages, The Mirror reports.

The Covid pandemic has seen travel become extremely restricted, with haulage companies saying their European drivers have simply decided not to return to the UK due to the virus and Brexit.

As well as food deliveries, there have also been issues with some council services, and several councils have been forced to halt services like garden waste collection, according to the chair of the Local Government Association, James Jamieson.

The environment spokesperson for the LGA, Darren Rodwell, said: “While most councils have been able to keep services running, some are having to reduce services such as green waste collection.

“These issues are partly due to the increase in ‘pinged’ staff but also a larger problem with a shortage of HGV drivers.

“The announcement that waste collection staff can apply for exemption is pleasing, but we are awaiting details on how quick the application process will be and whether it includes all waste collection staff.”

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Empty shelves ‘crisis’ in supermarkets to get worse in ‘next three weeks’, haulage boss warns

‘In the next two to three weeks we are facing a collapse of the supply chain’

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@kentishsal & Dr Mike Galsworthy / Twitter

Shoppers have been urged not to start panic buying amid empty shelves and supply shortages in Tesco, Morrisons, Sainsbury’s and Lidl stores across the country.

In scenes reminiscent of the start of the Covid pandemic in March 2020, shelves across countless supermarkets up and down the country have been sparse, leaving frustrated customers speculating what could possibly be the cause of the issue.

Now shoppers have been warned by industry bosses there could be further more empty shelves because of a collapse in the supply chain.

Jivee Blau / Wikimedia

Speaking to BBC Radio 4’s Today programme, Richard Burnett, chief executive of the Road Haulage Association, said: “In the next two to three weeks we are facing a collapse of the supply chain meaning even bigger gaps on supermarket shelves.

“We already have hauliers unable to move goods on a daily basis and we’re now facing a perfect storm.

“This is a crisis on a scale we have never seen before in this industry and the government is burying its head in the sand.

“It is not recognising the seriousness.”

A Morrisons spokeswoman told the BBC: “As per the whole of the UK, we are experiencing a rise in cases and close contact notifications.

“We provide guidance and support for colleagues who may need to self-isolate including sick pay and have covid secure controls in place in all our stores to ensure we can continue to operate and keep them open.

“Throughout the whole of the pandemic, we have not been required to close a store.”

The British Retail Consortium (BRC) has acknowledged industry-wide problems but said stores are working closely with suppliers so customers can still buy what they need.

But what’s actually causing these shortages?

Rept0n1x / Wikimedia

Well, a large part of the problem can be credited to the ongoing lack of HGV drivers – Tesco recently revealed that the shortage in drivers is resulting in forty-eight tonnes of food waste each week as fresh goods destined for its stores are being left to rot.

The Road Haulage Association (RHA) estimates there is currently a shortfall of up to 100,000 lorry drivers in the UK – and as well as this issue, the coronavirus pandemic and Brexit are also being blamed for shortages, The Mirror reports.

The Covid pandemic has seen travel become extremely restricted, with haulage companies saying their European drivers have simply decided not to return to the UK due to the virus and Brexit.

The recent reopening of all shops and hospitality establishments such as nightclubs also means there’s been a sudden demand for certain goods.

Amid all of these issues, the RHA has called on Prime Minister Boris Johnson to take action on the HGV driver shortage.

In response, the government says it has ramped up testing for lorry drivers, is paying for more apprentices and is allowing current drivers to increase their working hours. But, even before Covid, the estimated shortage of drivers was around 60,000.

Other circumstances that have been blamed on causing delays include the earlier blockage of the Suez Canal.

Despite all the issues with supply, customers are being warned not to panic buy.

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