UK unveils back-to-work bonus scheme and restaurant discounts for all citizens - CNBC

Finance Minister Rishi Sunak has announced a back-to-work bonus scheme for businesses bringing furloughed employees back to work, and a 50% restaurant discount for all citizens through the month of August.

However, Sunak claimed the scheme "can't and shouldn't go on forever" and labeled calls for a further extension to the furlough scheme "irresponsible.".

Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before, and the longer people are on furlough, the more likely it is their skills could fade and they will find it harder to get new opportunities," Sunak argued.

Mike Bell, global market strategist at JPMorgan Asset Management, said that while the economy will benefit from today's proposals, they would not be enough to offset the hit from the winding down of the furlough scheme.

"Prematurely winding down the scheme risks having merely delayed job losses for millions of people, particularly in the worst affected sectors such as hospitality and retail.".

The Treasury had revealed Tuesday night that Sunak would announce a £2 billion "kickstart scheme" aimed at subsidizing six-month work placements for people aged 16-24 who are at risk of long-term unemployment, along with a £111 million investment to triple the scale of traineeships in 2020-21.

Also included in the budget were an extra £1 billion to the Department for Work and Pensions to handle efforts to return employees to work, a £2 billion "green homes" plan and a further £1 billion to make public sector buildings more energy efficient.