Rishi Sunak insists “our plan is the right plan” after terrible warning for the economy

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Rishi Sunak Insists

Rishi Sunak Insists Government Borrow To Support Businesses During Lockout Was Good Plan After Experts Predict Disastrous Forecast For British Economy

Chancellor Rishi Sunak insisted that the government was right to force all non-core businesses to remain closed after the Office for Budget Responsibility (OBR) predicted a 35% drop in GDP following the coronavirus crisis.

Speaking at the daily Downing Street press conference, the finance minister admitted that tough times were ahead, but was confident that the UK economy would “rebound quickly” when the lockout restrictions were lifted.

He said disastrous forecasts for the UK economy after the coronavirus would have been worse if the government had not borrowed large amounts to support people and businesses despite the pandemic.

“The OBR has made it clear that if we had not taken the measures we have, the situation would be much worse, in other words, our plan is the right plan,” he said.

Experts from the independent group predict a 35% drop in GDP if the lock-in remains in place for a period of three months, followed by three months of partially lifted restrictions.

However, they said the economy would “rebound quickly” and said the government’s colossal coronavirus retention program “would cushion the blow”.

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The OBR report also predicted that the UK will see unemployment rise to 10% of the workforce, or around 2,000,000 people.

Sunak suggested the gloomy forecast was not an excuse to quickly lift social distancing measures, saying that “the most important thing” that could be done for the health of the economy was to “protect health of our people. “

The Office for Budget Responsibility has predicted higher unemployment and lower GDP

“It is not about choosing between economics and public health,” he said.

“At a time when hundreds of people die every day from this terrible disease, our top priority must be to focus all of our resources in a collective national effort to defeat this virus.”

The chancellor insisted that he would not stay put and would let the economy continue to suffer when the crisis passed.

He said the government was still determined to level the country and invest in infrastructure – key commitments made in the general election.

But when asked about measures that could be introduced to support young people, who will be disproportionately affected by the economic fallout, he said he could not “write future budgets today”.

He also said that he could not “write future tax policy” when asked how the government would find money to fill the deficit created by the coronavirus.

He said the best way out of the crisis would be to “grow the economy” and insisted that things would not be made worse by a Brexit without a deal.

He said the government was determined to reach a trade deal with the EU and that the chief negotiators for the two sides, Michel Barnier and David Frost, had discussed how the talks could continue.

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