We know that Coronavirus has had an impact on all our lives. The ripples will be felt for plenty of time to come. However, what we may not realise is that the effect of the global pandamic, may cause us more issues than we realise.

The UK has entered a serious period of debt. In fact, it is thought that the Government hand outs to the industries and businesses who were most impacted by the UK lockdown, as well as the huge spending that we have seen in healthcare; has meant that the UK is in around £2trillion debt.

This is a figure that most of us cannot even comprehend. After all, it is a huge amount of money to try and balance. It seems that the headache of trying to claw back this money is not only down to the government. All of us, are likely to feel the pinch.

But, how?

The end of the furlough scheme

The furlough scheme has been a lifeline for man people. Not only has it helped businesses to stay open, which is great. But it has also ensured that staff members are paid whilst the business is not able to operate as usual.

Unfortunately, the furlough scheme is going to be stopped in October. It is hoped that the majority of businesses that have used the scheme, will be able to open up in at least some capacity and bring staff back.

Higher taxes

Another way that it is likely that we will see an impact from Coronavirus is in our taxes. It is thought that there will definitely be a rise in taxes. We don’t know when, we don’t know on what and we don’t know how much. But, what we do know is that there is going to be an increase in the taxes that we have to pay. Which will impact each and every one of us in some way or another.

We have to say that we don’t know what will happen in the future. But, what is for sure that the Government bailouts that so many of us have been thankful for; will mean that we all have to pay to get the UK back on track in the future.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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