Sunak warned of ‘tidal wave’ of job losses as furlough scheme ends

Published

3 years ago

September 30, 2021

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The government’s coronavirus furlough scheme ends today after supporting millions of workers during the pandemic.

Ministers say the wages of more than 11 million jobs were subsidised for at least some of the scheme’s duration, at a cost of about £70bn.

There is now uncertainty over the almost one million people still thought to be on the scheme at the end of September, according to Office for National Statistics (ONS) estimates.

Meanwhile, job vacancies in the UK have hit a record of more than a million, according to recent ONS data, with openings in the hospitality and transport sectors up more than 75% in three months.

Chief Secretary to the Treasury Simon Clarke told Sky News: “There is a lot of opportunity out there for people now. There’s never an easy moment to end these measures.

“They’ve been hugely important but it is also time to recognise that we are now, thankfully, out of the teeth of this pandemic… and we’re in a situation where normal opportunity is back out there for people to embrace.”

But economists say there is likely to be a rise in unemployment due to new redundancies, despite the fact some may be able to find work in recovering sectors such as travel and hospitality.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said he still had “doubts” about whether the economy had recovered enough to re-employ all those coming off furlough.

The winding up of the scheme could hit some especially hard as it comes at the same time as the £20 Universal Credit uplift ends, and amid a background of rising energy bills.

The Liberal Democrats have warned of a “tidal wave” of job losses and want furlough to continue for some sectors.

In a letter to the chancellor, Liberal Democrat Treasury spokesperson Christine Jardine said furlough should be maintained for another six months for 10 industries particularly badly affected by the pandemic, such as air travel.

“The withdrawal of furlough risks having a devastating impact on countless families already facing a winter of soaring energy bills,” said Ms Jardine.

“The government needs to rethink its approach or the country could face a Coronavirus Black Thursday.”

The party says the extension would cost about £600m.

Chancellor Rishi Sunak said: “I am immensely proud of the furlough scheme, and even more proud of UK workers and businesses whose resolve has seen us through an immensely difficult time.

“With the recovery well underway, and more than one million job vacancies, now is the right time for the scheme to draw to a close.

“But that in no way means the end of our support. Our Plan for Jobs is helping people into work and making sure they have the skills needed for the jobs of the future.”

Following the end of the furlough scheme, the government has launched a £500m support package for vulnerable households over winter.

The new Household Support Fund will help people with essentials over the coming months and will be distributed by councils in England.

It will be available as small grants to meet daily needs such as food, clothing, and utilities and will be available to councils from October.

The devolved administrations will receive up to £79m of the £500m.

Politics

Bitcoin needs weekly close above $81K to avoid downside ahead of FOMC

Published

4 hours ago

March 15, 2025

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Bitcoin needs weekly close above K to avoid downside ahead of FOMC

Bitcoin needs to close above the key $81,000 weekly level to avoid more downside volatility ahead of next week’s Federal Open Market Committee (FOMC) meeting, which will offer investors more cues on the Federal Reserve’s monetary policy for 2025.

Bitcoin (BTC) price fell over 3% during the past week, to trade above $83,748 as of 9:33 a.m. in UTC, Cointelegraph Markets Pro data shows.

Bitcoin price continues to risk significant downside volatility due to growing macroeconomic uncertainty around global trade tariffs, according to Ryan Lee, chief analyst at Bitget Research.

Bitcoin needs weekly close above $81K to avoid downside ahead of FOMC — *BTC/USD, 1-year chart. Source: Cointelegraph*

Closing the week above $81,000 will be key to avoid more Bitcoin downside, the analyst told Cointelegraph, adding:

“The key level to watch for the weekly close is $81,000 range, holding above that would signal resilience, but if we see a drop below $76,000, it could invite more short-term selling pressure.”

The analyst’s comments come days ahead of the next FOMC meeting scheduled for March 19. Markets are currently pricing in a 98% chance that the Fed will keep interest rates steady, according to the latest estimates of the CME Group’s FedWatch tool.

The outcome of the meeting may significantly impact Bitcoin investor sentiment, said Lee, adding:

“The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets.”

“Even a dovish surprise, like a rate cut, might not be the immediate boost some are hoping for, as investors are still weighing macro uncertainties,” added the analyst.

Bitcoin close above $85k may reignite investor optimism for more upside: analyst

Other analysts are seeing a silver lining in Bitcoin’s stagnant price action.

A weekly close above $85,000 may inspire more investor confidence and lead to the next breakout, according to Enmanuel Cardozo, market analyst at Brickken real-world asset tokenization platform.

The market analyst told Cointelegraph:

“Traders and investors alike are keeping a close eye on the $80,000 support and the $85,000–$90,000 resistance, with a break above the latter potentially sparking a strong upward movement.”

While Bitcoin’s short-term momentum may be limited by the upcoming economic releases, the regulatory developments around Trump’s Bitcoin reserve plan may gradually bring more market optimism and mass adoption, added the analyst.

Trump’s Bitcoin reserve came one step closer to fruition on March 14, after US Representative Byron Donalds introduced a bill that seeks to ensure the Bitcoin reserve becomes a permanent fixture, preventing future administrations from dismantling it through executive action.

If the bill is passed, it would ensure that the Strategic Bitcoin Reserve and the US Digital Asset Stockpile could not be eliminated via executive actions by a future administration.

The bill will require at least 60 votes in the Senate and a House majority to pass. With Republicans holding a Senate majority — and amid a generally more crypto-friendly environment — the bill has a chance of passing.

Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1

Politics

Sacks and his VC firm sold over $200M in crypto and stocks before WH role

Published

13 hours ago

March 15, 2025

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Sacks and his VC firm sold over 0M in crypto and stocks before WH role

David Sacks and his venture capital firm sold over $200 million in crypto and crypto-related stocks before he commenced his role as the White House AI and crypto czar, a White House memorandum disclosed.

“You and Craft Ventures have divested over $200 million of positions related to the digital asset industry, of which $85 million is directly attributable to you,” said the memorandum dated March 5.

Crypto sell-off in an effort to prevent conflict of interest

The memorandum said “significant steps” were taken to reduce potential conflicts of interest before Sacks began his tenure as the White House AI and crypto czar — in which a major part of his role is to help create a legal framework for the crypto industry.

Sacks offloaded all the “liquid cryptocurrency” in his portfolio, as well as Craft Ventures’ portfolio — the investment firm he co-founded in 2017 — including holdings in Bitcoin (BTC), Ether (ETH), and Solana (SOL) before US President Donald Trump’s inauguration on Jan. 20.

United States, Donald Trump — *The memorandum outlined which cryptocurrencies and crypto-related stocks David Sacks sold prior to Trump’s inauguration. Source:* *The White House*

Since Trump’s inauguration, the crypto market has seen a major decline amid a broader market downturn, with many blaming Trump’s proposed tariffs and uncertainty over US interest rates.

While Bitcoin tapped a new all-time high of $109,000 just hours before Trump was sworn in as the 47th US president, it recently dipped below $80,000 on Feb. 27, erasing all post-election gains. At the time of publication, Bitcoin is trading at $84,155, as per CoinMarketCap data.

Sacks also divested from publicly traded crypto-related firms, including Coinbase (COIN), Robinhood (HOOD), and stakes in private digital asset companies.

Additionally, he sold his limited partner interest in Solana-focused Multichain Capital and crypto-focused venture capital firm Blockchain Capital. At the same time, Craft Ventures offloaded its holdings in Multichain Capital and Bitwise Asset Management.

Sen. Warren urged Sacks to prove he no longer holds crypto

The memorandum is dated one day before Massachusetts Senator Elizabeth Warren urged Sacks in a March 6 letter to prove he no longer holds any digital assets, following Sacks’ claim in an X post that he sold off all his crypto.

“Despite your public statements via X, it remains unclear exactly when you personally divested from BTC, ETH, and SOL, when Craft Ventures divested from Bitwise, and whether people close to you ‘may have held positions and sold into the recent price surge,” Warren said.

Since Sacks started the White House crypto role, he has been a vocal advocate on various issues in the crypto industry, from the importance of a Strategic Bitcoin Reserve to not over-taxing the crypto industry.

Sacks recently shut down the idea of crypto transaction taxes on an episode of the All In Podcast after host Jason Calacanis proposed charging a 0.01% tax on every cryptocurrency transaction.

“That’s always how taxes start. They are described as being very modest,” Sacks said.

“You know, when the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people,” Sacks added.

Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why

Politics

Starmer to host virtual meeting of ‘coalition of the willing’ – and demand ‘concrete commitments’ on Ukraine

Published

14 hours ago

March 15, 2025

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Starmer to host virtual meeting of 'coalition of the willing' - and demand 'concrete commitments' on Ukraine

Sir Keir Starmer will host a virtual meeting of world leaders to discuss peacekeeping in Ukraine, and he will use the call to say that now is the time for “concrete commitments”, Downing Street has said.

Around 25 leaders are expected to join the call on Saturday morning, in which they will discuss in more detail the peacekeeping mission the prime minister has called the ‘coalition of the willing’.

Sir Keir will ask allies to continue to ramp up military support to Ukraine.

He will also say countries need to increase economic pressure on Russia in the short term, and be prepared to support an eventual peace deal over the long term, should an agreement be reached.

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Attendees will also receive an update on the discussions of defence ministers and military chiefs in Paris this week, and they will all set out details of their own efforts to unlock further military support for Ukraine.

Downing Street has confirmed that some European countries, the EU Commission, NATO, Canada, Ukraine, Australia and New Zealand are expected to join the virtual meeting.

Starmer: The world needs to see action

In a statement ahead of the call, the prime minister said: “We can’t allow President Putin to play games with President Trump’s deal.

“The Kremlin’s complete disregard for President Trump’s ceasefire proposal only serves to demonstrate that Putin is not serious about peace.

“If Russia finally comes to the table, then we must be ready to monitor a ceasefire to ensure it is a serious and enduring peace, if they don’t, then we need to strain every sinew to ramp up economic pressure on Russia to secure an end to this war.”

He went on to accuse the Russian president of “trying to delay” by “saying there must be a painstaking study before a ceasefire can take place”.

“The world needs to see action, not a study or empty words and pointless conditions,” he continued.

“My message to the Kremlin could not be clearer: stop the barbaric attacks on Ukraine, once and for all, and agree to a ceasefire now. Until then, we will keep working around the clock to deliver peace.”

Sir Keir has said Britain could send peacekeepers to Ukraine in the event of a ceasefire deal, but has called on Washington to offer a security ‘backstop’ to those forces.

Russia casts doubt on potential ceasefire

The meeting comes after Ukraine backed the US’s proposal for a 30-day ceasefire.

But the Russian president has said “lots of questions” remain over that proposal, and that a ceasefire must lead to “long-term peace” which “would remove the initial reasons for the crisis”.

Moscow has reportedly also presented a “list of demands” to the US to end the war, which would include international recognition of Russia’s claim to Crimea and four Ukrainian provinces and an agreement that foreign troops not be deployed in Ukraine.

Ukraine’s president Volodymyr Zelenskyy said Mr Putin’s remarks were “very predictable” and “very manipulative”, adding that the Russian president was preparing to reject the ceasefire proposal he agreed with the US.