RISHI Sunak is drawing up a major cash package to help fight the coronavirus crisis in next week’s Budget, it emerged last night.
Forecasters have warned the virus’s spiralling outbreak is now likely to wreak havoc on the economy.
Rishi Sunak has been forced to create a major cash package in next week’s Budget to help fight the coronavirus crisis
Treasury insiders revealed last night that the crisis has forced the new Chancellor to make changes to his first blueprint for the nation’s finances, due in just eight days time.
The package – which could run into the hundreds of millions – will provide emergency support for individuals and businesses hit by the chaos.
It will include money to keep struggling firms afloat, and allowances for the self-employed if their income totally dries up.
Fresh emergency funding has also been set aside for the NHS if it is overwhelmed by sufferers.
But Downing Street sources also last night insisted a major tax cut for Britain’s 31million workers will still go ahead.
PM Boris Johnson is said to be still determined Mr Sunak delivers on the Tories’ key election promise to raise the National Insurance contributions tax free threshold to £9,500 per year, giving a £100 tax cut.
Major new investment spending to level up left behind areas of the UK in the North and the Midlands will also still be in the Budget.
DETERMINED TO DELIVER
A Downing Street source said: “Tax cuts and infrastructure spending is just the sort of stimulus the economy may need, so that will all still go ahead.”
But new day to day spending increases for public services that No10 also wanted to carry out now faces a delay until the Whitehall-wide spending review in the Autumn.
After briefing the government’s COBRA emergency committee meeting on coronavirus yesterday morning, Mr Sunak said last night: “The whole of government is working closely together to tackle the spread of COVID-19.
“We understand that people across the country are worried, but I assure you that we are taking firm action to support your families, your businesses and the public services on which you rely.
“We are well prepared for this global threat and, as the wider economic picture becomes clearer, we stand ready to announce further support where needed.”
The Chancellor also held talks with Bank of England governor Mark Carney last night on emergency measures to stimulate the economy if they are also needed.
Several wide-reaching consultations for planned new reforms are now expected to be delayed until Mr Sunak’s second Budget this year in November.
His new plans emerged as the Organisation for Economic Cooperation and Development (OECD) yesterday slashed global growth by 0.5 per cent yesterday because of coronavirus.
The international watchdog said the global economy will grow at its slowest rate since 2009.
Boris Johnson is still insisting Mr Sunak delivers on the Tories’ key election promises despite the major Budget change
