British Prime Minister Boris Johnson will unveil his latest "unwinding" plan on June 23, his office said, adding that the third phase of the "unwinding" will begin on July 4 to fully restart the economy. At the same time, people can reduce their social distance from two metres to one metre if they take other precautions, such as wearing masks.
The report goes on to say that as well as reducing social distance, the UK government is considering tax cuts, with Chancellor of the exchequer Tony Sunak set to announce a big cut in value added tax (VAT) in an effort to kick-start the economy.
It is understood that although the UK stores are fully open, but the turnover is still only about 40% of the normal level. As a result, Mr. Sunak is likely to announce a cut in VAT from the current 20% to 17% or even 15%.
Helen Dickinson, CHIEF executive of the BRC, said: "A temporary reduction in VAT, and a reduction in income tax for people on low incomes, would be effective in boosting spending." While this would significantly reduce government revenue and further increase government debt, it would also allow companies to retain more revenue to shore up their finances. The VAT plan is still under discussion.