Economic recovery will not come easy – the government has its work cut out

So, for the first time since 1953, John Lewis will not pay a bonus to its staff.

That will be inconsequential for many facing a harder burden thanks to the coronavirus pandemic, but it is indicative of an economic situation across the country that will be difficult to remedy.

John Lewis had previously suggested that it may not pay a bonus, so it is not all Covid-19 related, but it certainly played a part. The same situation of falling sales from bricks-and-mortar outlets is being replicated across several industries.

The government is in a tough spot. With infections rising and lockdown-like measures being implemented across parts of England, it is likely that more economic pain is to come, even after a bit of a lift over the summer. There are no easy answers – and there isn’t a bottomless pit of resources to spend our way out of trouble. Or certainly not if we don’t want further economic troubles further down the line.

We have had plenty of correspondence from readers about the tough situations they find themselves in – with little hope of a quick turnaround.

Labour has called for the furlough scheme to be extended in some form, with Sir Keir Starmer saying the government should outlaw “firing and rehiring” methods to avoid the “scarring effect” of mass unemployment – with 10 million workers having been part of the current scheme at some point. 

The Labour leader has said he and his party is willing to work with the prime minister, Boris Johnson, and the chancellor, Rishi Sunak, on crafting a new plan –  including targeted support for badly hit sectors. Sunak himself has said the government needs to be “creative” in order to get the maximum amount of people back to work.

Christmas will likely also be crucial for retailers as they look to claw back some of the sales lost to the Covid-19 pandemic.

One thing is for sure, it will not be an easy process – but one that is vital for the nation.

Yours,

Chris Stevenson

Voices editor