Shropshire Star comment: Everything possible must be done to limit damage
It has only been a week since Chancellor Rishi Sunak delivered his first Budget, the bulk of of which was dedicated to measures aimed at reducing the expected impact of Covid-19.
At the time it was widely praised as being filled with hope, heralding a prosperous new dawn for the UK after a decade of frugality and swingeing cuts.
Rarely can a financial document have dated so quickly, and in recent days it has become evident that the £12 billion set aside by the Government was woefully inadequate considering the challenges faced by the country.
Mr Sunak cannot have known how quickly coronavirus would spread in the UK, how dramatically it would change our daily lives.
The illness has seemingly caught everyone on the hop – including the Government’s health experts.
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It means the Chancellor has effectively had to go back to the drawing board, tearing up his best laid plans and starting from scratch in a bid to chart a path through the most treacherous financial waters this country has ever known.
This means offering fresh assistance for the many firms who suddenly find themselves in crisis, which comes amid stark warnings of hundreds of thousands of potential redundancies.
At this stage, it remains to be seen whether even these new measures will be enough, and Boris Johnson has himself said the country’s response is likely to change by the day as new developments emerge. One thing is certain, as medical advice moves on, so must the Government’s economic response.
We must not, under any circumstances allow businesses to fail because they have not received adequate support.
There is clearly a great deal of concern in the Treasury about the catastrophic impact that a prolonged lockdown could do to the UK’s finances. Savings must be made to help those who need it most, and if that means scrapping vanity projects such as HS2 then so be it.
Ministers are fully aware that all over the country, decisions are already being made to close down premises and lay off workers. The Government must do all it can to limit the damage.
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Fashion and furniture chain Laura Ashley has become the latest business casualty of coronavirus.
And sadly the 60-year-old firm will not be the last, in what is going to be a highly testing period for Britain’s economy.
It comes hot on the heels of the collapse of regional airline Flybe, and means that 2,700 jobs at the retailer are at serious risk.
Laura Ashley is one of the many firms reeling from the devastating impact of the Covid-19, with the government advising people to avoid unnecessary contact with others.
The hospitality industry has warned that new government restrictions around coronavirus could shut down firms.
Restaurant chain Carluccio’s is one of a number of firms to warn it could see closures in days due to the impact of the virus.
What is remarkable about the demise of Laura Ashley, is that after a difficult 2019, year-on-year trading had been up by a quarter in the seven weeks to March.
The collapse of this iconic company is a stark example of the damage that the virus is causing.
