The UK economy will get worse before it gets better, Chancellor Rishi Sunak has warned.
In a speech to MPs, Sunak said that new national restrictions to control the spread of coronavirus are necessary but will have a “further significant economic impact”.
Fiscal stimulus measures provided so far amount to more than £280bn.
Alongside the introduction of new restrictions, the Government is providing another £4.6bn to protect UK jobs and businesses, the chancellor said.
For example, businesses in England that are legally required to close — such as those in retail, hospitality and leisure — can claim one-off grants of up to £9,000 for each of their premises, benefitting over 600,000 businesses.
Additionally, local authorities will be distributing discretionary funds of half a billion pounds to support local businesses in their areas. The furlough scheme has also been extended until the end of April 2021.
“Sadly, we have not, and will not, be able to save every job and every business,” Sunak said.
“But I am confident that our economic plan is supporting the finances of millions of people and businesses.”