U.K. Chancellor Says Self-Employed May Have to Wait for Virus Help

(Bloomberg) --

U.K. Chancellor of the Exchequer Rishi Sunak played down the prospect of immediate help for self-employed workers hit by the coronavirus crisis, saying a targeted solution will take time to put in place.

“It’s about targeting support on those who most need it, and that is requiring time and thought,” Sunak told the House of Commons on Tuesday. He ruled out a universal basic income to instantly give cash to affected workers in answers to questions from lawmakers. “We will have to build another brand new system to deliver support,” he said.

Prime Minister Boris Johnson’s government is under mounting pressure to help the 5 million Britons who work for themselves, a group which isn’t covered by Sunak’s commitment to pay 80% of the wages of employees at risk of losing their jobs. Sunak said he wants to avoid giving subsidies to wealthy self-employed people who might have seen an increase in business as a result of the virus, and plans to announce details of likely measures in the coming days.

“This is clearly an area where further action is needed by the government,” said Mel Stride, a Conservative MP who chairs the cross-party Treasury Committee. “We have received over 14,000 responses, mostly on issues relating to self-employment, from people who work in a wide variety of professions, including childminders, taxi drivers and hairdressers.”

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