Morning briefing: Tax hikes to foot UK’s coronavirus bill?

Good morning.

A leaked Treasury document suggests Chancellor Rishi Sunak may need to hike income tax, freeze public pay or end the pension triple-lock to foot the bill for the coronavirus pandemic. The document, obtained by the Telegraph, predicts the UK’s budget deficit will reach £337bn in 2020 – the March Budget predicted a £55bn deficit. Tax rises and spending cuts that raise up to £30bn could be required to fund the increased debt, and may be announced within weeks, the document says. In the worst-case scenario, the deficit will reach £516bn this year, requiring £90bn in cuts and tax rises, while the Treasury’s most “optimistic” scenario forecasts a £209bn deficit.

The news comes as the government officially lifts lockdown measures for the first time. From today, people can exercise outdoors as much as they want and meet a friend in the park, while those that cannot work from home are encouraged to resume their commute, avoiding public transport when possible. Scientists at University College London have said 8 million people with underlying health issues should be exempt from the government’s back-to-work plans to avoid a deadly second spike of infections. In a new study published in the Lancet, they said people with conditions such as diabetes, obesity and heart problems – about a fifth of the working population – should stay home.

One set of businesses allowed to reopen today are estate agents, a move designed to kickstart the stalled housing market. Removal firms and conveyancers can return to business, show homes can open and councils can restart construction in residential areas in staggered shifts. Anyone buying a house can now view properties again, creating a bizarre situation whereby people can visit a strangers’ home, but not see their family. It is estimated that 450,000 buyers and renters have moving plans on hold.


Global updates:

Mexico: Mexico recorded 353 Covid-19 deaths on Tuesday, the largest daily rise in the country by far. The number is nearly 100 more than its previous record, seen last week.

New Zealand: New Zealand will today move into a “level two” alert from level three, allowing retail stores, restaurants, cinemas and public spaces to reopen. Mass gatherings are limited to 100 people. Funerals were supposed to be restricted to 10 people, but the government has amended its rules so that 50 mourners can gather.

Singapore: Singapore will test all 323,00 migrant workers living in cramped dormitories for coronavirus, authorities have announced. Infection numbers have spiked among the workers, fuelling a second wave of infections in the country.

Brazil: The country has recorded its highest daily death toll to date, with 881 new deaths. Infection numbers have now passed 177,000.

China: The city of Wuhan will test all of its 11 million residents, local media has reported.

India: Prime Minister Narendra Modi has announced a $270bn economic stimulus package for workers and small businesses, worth about 10 per cent of national GDP.

Europe: An uneven economic recovery from the pandemic would be an “existential threat” to the European Union, the bloc’s economic commissioner has said.

Read more on the New Statesman:

The 2 per cent fall in UK GDP shows why radical economic policy is needed

Rishi Sunak has extended the Coronavirus Job Retention Scheme – but it can’t last forever

It’s achieving growth, not paying off the debt, that will be difficult after Covid-19

Covid-19 has exposed the limits of the politics of individualism

Why Poland’s “ghost election” sends a warning about its democracy

 
 
 
 

CityMetric is now City Monitor! Come see us at our new home

City Monitor is now live in beta at citymonitor.ai.

CityMetric is now City Monitor, a name that reflects both a ramping up of our ambitions as well as our membership in a network of like-minded publications from New Statesman Media Group. Our new site is now live in beta, so please visit us there going forward. Here’s what CityMetric readers should know about this exciting transition.  

Regular CityMetric readers may have already noticed a few changes around here since the spring. CityMetric’s beloved founding editor, Jonn Elledge, has moved on to some new adventures, and a new team has formed to take the site into the future. It’s led by yours truly – I’m Sommer Mathis, the editor-in-chief of City Monitor. Hello!

My background includes having served as the founding editor of CityLab, editor-in-chief of Atlas Obscura, and editor-in-chief of DCist, a local news publication in the District of Columbia. I’ve been reporting on and writing about cities in one way or another for the past 15 years. To me, there is no more important story in the world right now than how cities are changing and adapting to an increasingly challenging global landscape. The majority of the world’s population lives in cities, and if we’re ever going to be able to tackle the most pressing issues currently facing our planet – the climate emergency, rising inequality, the Covid-19 pandemic ­­­– cities are going to have to lead the way.

That’s why City Monitor is now a global publication dedicated to the future of cities everywhere – not just in the UK (nor for that matter just in the US, where I live). Our mission is to help our readers, many of whom are in leadership positions around the globe, navigate how cities are changing and discover what’s next in the world of urban policy. We’ll do that through original reporting, expert opinion and most crucially, a data-driven approach that emphasises evidence and rigorous analysis. We want to arm local decision-makers and those they work in concert with – whether that’s elected officials, bureaucratic leaders, policy advocates, neighbourhood activists, academics and researchers, entrepreneurs, or plain-old engaged citizens – with real insights and potential answers to tough problems. Subjects we cover include transportation, infrastructure, housing, urban design, public safety, the environment, the economy, and much more.

The City Monitor team is made up of some of the most experienced urban policy journalists in the world. Our managing editor is Adam Sneed, also a CityLab alum where he served as a senior associate editor. Before that he was a technology reporter at Politico. Allison Arieff is City Monitor’s senior editor. She was previously editorial director of the urban planning and policy think tank SPUR, as well as a contributing columnist for The New York Times. Staff writer Jake Blumgart most recently covered development, housing and politics for WHYY, the local public radio station in Philadelphia. And our data reporter is Alexandra Kanik, whose previous roles include data reporting for Louisville Public Media in Kentucky and PublicSource in Pittsburgh, Pennsylvania.

Our team will continue to grow in the coming weeks, and we’ll also be collaborating closely with our editorial colleagues across New Statesman Media Group. In fact, we’re launching a whole network of new publications, covering topics such as the clean energy transition, foreign direct investment, technology, banks and more. Many of these sectors will frequently overlap with our cities coverage, and a key part of our plan is make the most of the expertise that all of these newsrooms combined will bring to bear on our journalism.

Please visit citymonitor.ai going forward, where you can also sign up for our free email newsletter.


As for CityMetric, some of its archives have already been moved over to the new website, and the rest will follow not long after. If you’re looking for a favourite piece from CityMetric’s past, for a time you’ll still be able to find it here, but before long the whole archive will move over to City Monitor.

On behalf of the City Monitor team, I’m thrilled to invite you to come along for the ride at our new digs. You can follow City Monitor on LinkedIn and on Twitter. If you’re interested in learning more about the potential for a commercial partnership with City Monitor, please get in touch with our director of partnerships, Joe Maughan.

I want to thank and congratulate Jonn Elledge on a brilliant run. Everything we do from here on out will be building on the legacy of his work, and the community that he built here at CityMetric. Cheers, Jonn!

To our readers, on behalf of the City Monitor team, thank you from all of us for being such loyal CityMetric fans. We couldn’t have done any of this without you.

Sommer Mathis is editor-in-chief of City Monitor.