Rishi Sunak will today pledge billions to shore up the economy during the coronavirus outbreak.
The Chancellor, whose first Budget has had to be rewritten as the deadly virus spreads, will unveil a string of measures to try to save solid businesses from bankruptcy.
He will also announce a massive £600billion boost for infrastructure. Treble the typical level of spending, the cash will be splurged on roads, rail, housing and broadband over five years. Treasury experts say it is the biggest wave of public investment since the 1950s.
A manifesto pledge to increase the threshold for paying national insurance will be honoured, giving 30million workers an immediate tax cut of £100.
Rishi Sunak will today pledge billions to shore up the economy during the coronavirus outbreak. The Chancellor, whose first Budget has had to be rewritten as the deadly virus spreads, will unveil a string of measures to try to save solid businesses from bankruptcy. (Above, Mr Sunak on Tuesday, making final preparations for his Budget speech)
As the coronavirus outbreak takes grip, advance bookings for hotels, restaurants and bars this summer have halved, according to industry group UK Hospitality. (Above, central London on Tuesday)
And the ten-year freeze on fuel duty is likely to remain in place.
But Government sources acknowledged that today’s Budget will be judged on whether the Chancellor can deliver the confidence needed to stop the economy plunging into recession.
‘Whatever we say, this will become known as the corona Budget,’ said one insider last night. ‘It is the number one priority and the scale of the Budget measures will reflect that.’
As the outbreak takes grip, advance bookings for hotels, restaurants and bars this summer have halved, according to industry group UK Hospitality.
Mr Sunak will pledge to give the NHS whatever resources it needs to tackle the biggest challenge in its history. (Above, a passenger on a nearly deserted Bakerloo Line Tube carriage on Tuesday)
Some firms are being hit by a shortage of supplies from virus-ravaged China. Today’s Budget measures will include allowing firms to defer tax payments in order to improve cash flow. Ministers have also examined the idea of interest-free loans and hardship funds.
Mr Sunak will pledge to give the NHS whatever resources it needs to tackle the biggest challenge in its history. The number of confirmed cases of coronavirus yesterday jumped by 63 to 382, and the UK recorded its sixth death.
As the deputy chief medical officer warned the start of the peak of the epidemic was expected within a fortnight:
- Italy’s death toll rose by 168 to 631 and its 60million citizens went into lockdown;
- Thousands of Britons were effectively stranded in Italy after BA cancelled all flights and other airlines followed suit;
- A row erupted over the screening of passengers arriving on the few remaining flights from Italy as some countries closed their borders to Italian arrivals;
- Ministers admitted that GPs were under pressure and warned that waiting times were likely to rise with more online appointments;
- A massive increase in online outpatient appointments for the elderly is also being planned to save on trips to hospital;
- The NHS is massively scaling up virus testing capacity to 10,000 a day;
- Harvard University said it would begin moving to online classes later this month, with British universities under pressure to do the same;
- It emerged that a top surgeon had been struck down with coronavirus after returning from a skiing trip to Italy – but had treated patients in the meantime.
Over the past few days, cases have spread rapidly throughout Europe, with the total in Spain surging to over 1,600, France recording a 70 per cent rise and German chancellor Angela Merkel warning that up to 58million of her countrypeople could contract the virus.
Boris Johnson will chair another meeting of the emergency committee Cobra tomorrow. It will discuss whether the UK needs to switch formally from trying to contain the virus to a strategy of trying to delay a full-blown epidemic.
Boris Johnson will chair another meeting of the emergency committee Cobra tomorrow. It will discuss whether the UK needs to switch formally from trying to contain the virus to a strategy of trying to delay a full-blown epidemic
The number of confirmed cases of coronavirus yesterday jumped by 63 to 382, and the UK recorded its sixth death. Pictured, a sign directs patients towards an NHS 111 Coronavirus (COVID-19) Pod at St Thomas’ Hospital in London on March 5
Meanwhile, Italy’s death toll from coronavirus rose by 168 to 631 and its 60million citizens went into lockdown. (Above, an empty street in Milan on Tuesday)
This would quickly lead to ‘social distancing’ measures such as asking employees to work from home and to stay at home if they have even mild cold symptoms. Schools could be closed and mass gatherings banned.
Today’s Budget package will confirm reforms to statutory sick pay, allowing workers to receive it from the first day of illness rather than the fourth.
George Osborne called on Mr Sunak to ‘vaccinate the economy’ against the impact of the outbreak.
Philip Hammond, another former Tory chancellor, warned that without urgent intervention there was a danger that the UK could be hit by a recession.
The Office for Budget Responsibility is expected to downgrade its forecast for economic growth, and business organisations are warning of potentially fatal cashflow problems for some firms.
Treasury sources declined to comment on whether Mr Sunak would need to tear up tight spending rules in order to pay for his plans.
But they said rules that favoured spending in London and the South East could be dumped to enable more investment in the ‘left behind’ areas that helped hand the Tories an 80-seat majority.
George Osborne called on Mr Sunak to ‘vaccinate the economy’ against the impact of the coronavirus outbreak. (Above, Mr Sunak puts the finishing touches to his speech on Tuesday ahead of the Budget)
Today’s Budget package will confirm reforms to statutory sick pay, allowing workers to receive it from the first day of illness rather than the fourth. (Above, the scene at Waterloo Station on Tuesday)
Mr Sunak has already announced that cash for flood defences will double to £5.3billion and £5billion will be used to bring in faster broadband. (Above, Tewkesbury Abbey, at the confluence of the Rivers Severn and Avon, is surrounded by flood waters on February 27)
Thousands of Britons were effectively stranded in Italy after BA cancelled all flights and other airlines followed suit. (Above, information at Terminal 5 at Heathrow Airport on Tuesday)
Chancellor Rishi Sunak will devote £2.5billion of Budget money to the war on potholes
By DANIEL MARTIN for the Daily Mail
Rishi Sunak will unveil a multibillion-pound drive to ‘eradicate the scourge’ of potholes throughout the country.
The Chancellor will use his Budget speech today to pledge to spend £2.5billion on repairing 50million potholes over the next five years.
Drivers have been annoyed in recent years about disruptive works caused by building cycle and bus lanes while roads has worsened.
Mr Sunak will say the pothole money will be targeted at the South West, the North West and the east of England. The first half a billion will be spent this year.
Rishi Sunak will unveil a multibillion-pound drive to ‘eradicate the scourge’ of potholes throughout the country. (Above, file photo of potholes in a street in Harlow, Essex)
The Treasury said action is needed to improve infrastructure and deal with a situation where 90 per cent of insurance claims are related to pothole damage.
The Chancellor said: ‘We can’t level up Britain and spread opportunity if we are spending our journeys dodging potholes and forking out for the damage they cause.
‘It’s vital we keep roads in good condition. That’s why we are going to eradicate the scourge of potholes in every part of the country.
‘This funding will fill millions of potholes every year – speeding up journeys, reducing vehicle damage and making our roads safer.’
Mr Sunak said funding will also be available for local authorities to undertake long-term road resurfacing works to prevent potholes from appearing.
Luke Bosdet, of the AA, said tackling potholes was welcome but warned it must not be focused solely on major routes, leaving minor roads and residential streets ‘plagued’ by potholes.
But shadow chancellor John McDonnell branded the move a gimmick. He said the ‘Tories are repeating their mistake of the last 10 years’ by focusing on a ‘gimmicky grab-bag of projects’ which will only disappoint.
John O’Connell, chief executive of the TaxPayers’ Alliance, said: ‘The Government is right to prioritise frontline problems like potholes, but funding should be found from other bloated budgets, not increases to the already burgeoning tax burden.’
Mr Sunak has already announced that the Budget will include £100million to toughen up community sentences, strengthen the probation service and support victims of assault.
And some £9million will go towards a war on fly-tipping and the tampon tax will be abolished from 2021. Cash for flood defences will double to £5.3billion and £5billion will be used to bring in faster broadband.