DAVY VIEW

Rishi Sunak faces a difficult balancing act, announcing a further £30bn (1.4% of GDP) stimulus yesterday (July 8th) but insisting the job furlough scheme will end in October. Sunak will hope employment recovers before the nine million workers on the scheme face unemployment and sharp income cuts as they apply for universal credit. Without a vaccine or ‘track and trace’ system, cautious consumers continue saving, negating the £30bn stimulus.