An addendum to 'Rishi Sunak's dilemma'

The Chancellor should give as much thought to the payback as he did to the payout. 

Earlier this week I published a piece on a classic dilemma facing Chancellor Rishi Sunak - which addressed the flip side of his mass bailout for businesses. 

Despite his current popularity I asserted that his ratings could soon plummet when he starts to ask for the money back in the form of tax hikes, cuts to public services or public sector pay freezes. 

We all know how that ended for George Osborne, and Rishi could be staring down the same barrel if he's not careful. 

Addendum 

It is worth pointing out that while none of this is his fault - businesses required immediate assistance and he was right to provide it at an impressive rate - he would be wise to give as much thought to the payback as he did to the payout. 

As we have repeatedly pointed out, debt probably isn't the answer to the current crisis. 

It will leave many companies emerging from lockdown facing two challenges: reduced cash income and balance sheets that are entrenched in the red. 

A sensible alternative approach would have been to offer equity investment to companies that require cash - a proposal that has received a welcomed endorsement from MP Bim Afolami today.