Bank of England: Return of UK office workers to take time

LONDON (AP) — The Bank of England said Wednesday there are perfectly understandable reasons why the majority of office workers have yet to return to their pre-lockdown workplaces despite new coronavirus guidance from the British government.

Alex Brazier, the Bank of England’s executive director for financial stability strategy and risk, told lawmakers on the Treasury Select Committee of Parliament that the need for virus-safe environments and the related issue of trains packed with commuters means office workers cannot return en masse to city centers.

“I don’t think we can expect a sudden and sharp return of people to the very dense office environments that we were used to,” Brazier said. “We should expect a more phased return, depending on the public health outcomes we see in coming weeks and months.”

In recent weeks, Prime Minister Boris Johnson sought to encourage office workers back, partly because the U.K.'s city centers are suffering from the lack of foot traffic. Many shops remain shuttered while traditionally busy sandwich bars are closing early.

Meanwhile, Bank of England Governor Andrew Bailey said he understands why the government is ending a salary support initiative that has kept a lid on unemployment during the coronavirus pandemic.

He said the Coronavirus Job Retention Scheme, which has seen the government pay the bulk of the salaries of workers who were retained rather than fired during the U.K.'s virus lockdown, had been designed “very sensibly for a situation where 30% of the workforce couldn't work.”

The government is ceasing the salary support at the end of October, a cutoff that has raised fears of a huge spike in unemployment from the current rate of 3.9% as firms decide they cannot retain workers who have effectively been idle...