John McDonnell suggests 'minimum income guarantee'
![UP NEXT]()
UP NEXT
Rishi Sunak promised that support for people during the coronavirus crisis is "not going to stop" in a promotional video ahead of the Budget. The Chancellor said his statement on Wednesday would be characterised by "honesty and fairness". But the former Shadow Chancellor John McDonnell has insisted the furlough scheme must be extended.
Sadiq Khan calls for the government to extend furlough scheme
![UP NEXT]()
UP NEXT
Speaking to Sky News, Mr McDonnell said: "The common sense approach is you've got to extend the furlough scheme. We've got to recognise it is going to take us time to get through this pandemic, it's not going to happen overnight.
"[Rishi Sunak] has got to recognise there are three million people excluded from the furlough scheme and any support.
"We've got to extend the furlough scheme, make sure those who are excluded are brought within the support network itself but we've also got to look towards the long-term future now as well and recognise other countries like Germany have permanent support schemes.
"We should be looking at something more radical for the future such as a minimum income guarantee so that when there are dips in the economy people are supported."
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© SKYJohn McDonnell
© ITVRishi Sunak
This week's Budget will build on measures taken to protect businesses during the pandemic and pave the way for a "strong, jobs-led recovery", Boris Johnson has said.
But the Prime Minister emphasised warnings made by the Chancellor on the importance of being "frank" about the challenges the economy faces due to the coronavirus crisis.
There has been widespread speculation about what will be included when Rishi Sunak delivers his Budget on Wednesday, with reports suggesting that officials are considering plans to increase corporation tax from 19 percent to 25 percent.
Labour has warned Mr Sunak against immediately raising taxes, urging him instead to focus on securing the economic recovery following a year of financial disturbance.
© SKYJohn McDonnell
During a visit to Stoke-on-Trent on Monday morning, Mr Johnson told reporters: "I'm not going to anticipate what the Chancellor is going to say on Wednesday.
"But I am absolutely confident that it will be a Budget that builds on everything we have done to look after the businesses and the people of this country throughout the pandemic.
"But that also paves the way for a strong, jobs-led recovery. That's what our focus is going to be on."
Mr Johnson raised comments made by the Chancellor about the need to be "frank with ourselves" about the state of the public finances.
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© EXPRESSCoronavirus
"Yes, of course, it's been expensive to look after everybody throughout the pandemic," the Prime Minister told reporters.
"But I have no doubt that, if we get it right, as I'm sure we can, we can have a strong, jobs-led recover, that I think could be much stronger than many of the pessimists have been saying over the last six months or so."
On Sunday, Mr Sunak indicated that he will extend emergency support packages, such as the furlough scheme due to expire at the end of April, as lockdown measures are eased in the coming months.
But he said he must repair the public finances from the "enormous shock" of the pandemic with an "honest and fair" plan, with possible tax rises on the horizon.