Boris Johnson Delays Full Reopening of Economy by Four Weeks Amid Rising Coronavirus Cases

Strategic Insights -

The full reopening of the British economy has been delayed by four weeks due to a rapid rise in coronavirus cases, caused by the Delta variant first identified in India. Prime Minister Boris Johnson cited the need for caution to "save many thousands of lives by vaccinating millions more people." As a result, businesses will be asked to keep workers at home where possible, and nightclubs will remain closed with indoor socialising limits persisting for another four weeks. Companies are facing significant costs in July, including a 10 per cent contribution towards furlough costs and a proportion of their business rates.

Key Takeaways:

  • The full reopening of the British economy has been delayed by four weeks due to rising coronavirus cases and the spread of the Delta variant.
  • Prime Minister Boris Johnson cited caution as the reason for the delay, aiming to "save many thousands of lives by vaccinating millions more people."
  • Businesses will be asked to keep workers at home where possible, with nightclubs remaining closed and indoor socialising limits persisting for another four weeks.
  • Companies face significant costs in July, including a 10 per cent contribution towards furlough costs and a proportion of their business rates.
  • The government will continue with the original timetable for tapering the employee furlough scheme, despite calls from the Federation of Small Businesses to delay it.
  • Hospitality industry leaders estimate that the delay will cost the sector £3 billion in lost sales and put 300,000 jobs at risk.
  • The NHS aims to offer two doses of Covid-19 vaccinations to two-thirds of England's adult population, including all over-40s, over the next month.
  • New data from Public Health England highlights the effectiveness of the two vaccines in use in the UK against the Delta variant, with the BioNTech/Pfizer vaccine being 96 per cent effective against hospital admissions.
  • Prime Minister Johnson has not ruled out a further delay to reopening if the data point to the health service becoming overwhelmed.

Statistics:

  • £3 billion: Estimated cost of lost sales to the hospitality sector due to the delay.
  • 300,000: Number of jobs at risk due to the delay.
  • 96 per cent: Effectiveness of the BioNTech/Pfizer vaccine against hospital admissions.
  • 92 per cent: Effectiveness of the Oxford-AstraZeneca vaccine against hospital admissions.
  • 7,742: Further COVID-19 cases reported yesterday.
  • 3: Number of deaths reported yesterday.

Sources:

  • Boris Johnson quotes from [The Times]
  • Public Health England data [Public Health England]
  • Federation of Small Businesses call to delay tapering furlough scheme [The Times]
  • UKHospitality estimate of lost sales and job losses [The Times]
  • NHS vaccination targets [NHS England]