Rishi vows ‘swift’ recovery July 2022 – UK tipped for strongest growth in 70 years
Budget 2021: Rishi Sunak outlines details of furlough extension
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Chancellor of the Exchequer Rishi Sunak addressed the House of Commons on Wednesday on the Budget for 2021. Mr Sunak reiterated, as he said at the beginning of the pandemic, he was committed to doing anything to support the country through the pandemic. Mr Sunak noted that the Office for Budget Responsibility (OBR) has forecast the UK will return to pre-covid economy levels by July 2022.
This is six months faster than initially anticipated, Mr Sunak remarked this would mean more jobs and growth for UK citizens.
Despite this, Mr Sunak warned that there would still be long-lasting impacts from coronavirus on the UK economy.
Mr Sunak added that coronavirus would continue to cause “profound damage” going forward.
He told MPs that despite the £280 billion of support already committed to protecting the economy the damage done by the virus has been “acute”.
He said: “Our economy has shrunk by 10% – the largest fall in over 300 years.
“Our borrowing is the highest it has been outside of wartime.
“It’s going to take this country and the whole world a long time to recover from this extraordinary economic situation. But we will recover.”
The Chancellor said the OBR expects the economy will be 3% smaller than it would have been in five years’ time because of the coronavirus crisis, but that the economy is forecast to grow this year by 4 percent, by 7.3 percent in 2022, then 1.7 percent, 1.6 percent and 1.7percent in the last three years of the forecast.
The 7.3 percent increase would be the highest period of growth since the 1940s.
More to follow…
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