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Chancellor of the Exchequer Rishi Sunak speaking in the House of Commons in London, England, on October 20, 2020.
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The pound fell and yields on U.K. government debt rose on Thursday, as Chancellor of the Exchequer Rishi Sunak announced more support to companies impacted by new coronavirus restrictions, ahead of talks with the European Union on a post-Brexit trade agreement.
One key measure would reduce the employer contribution to paying furloughed employees to just 5% from 33%. It also would require employees to work 20% of their normal time, compared to a previous requirement of 33%.
Some 3.3 million people as of Aug. 31 were on the government’s more generous furlough program that is set to expire at the end of October.
Sunak also outlined measures for more cash grants to businesses and doubled the aid to self-employed. The Treasury says those grants, up to £2,100 per month, are primarily for businesses in the hospitality, accommodation, and leisure sectors in areas hit by increased restrictions.
Meanwhile, formal talks between the U.K. and European Union are set to resume on a trade deal.
The pound GBPUSD, -0.44% fell to $1.3097 from $1.3147, and the yield on the U.K. 10-year gilt TMBMKGB-10Y, 0.286% rose 3 basis points to 0.27%. Yields move in the opposite direction to prices.
The FTSE 100 UKX, +0.15%, meanwhile, inched into positive territory, shaking off early losses.
Read: EU-U.K. trade talks were on the brink — here’s why the negotiators resumed discussions
