(Alliance News) - The UK's recovery from the economic damage caused by coronavirus will be "swifter and more sustained" than previously thought, Chancellor of the Exchequer Rishi Sunak told members of Parliament as he set out his government budget.
But he warned it would take "a long time" to rebuild and pledged to do "whatever it takes" to support people.
The Office for Budget Responsibility expects the economy to return to its pre-Covid level by the middle of next year – six months earlier than they previously thought – but Sunak acknowledged that "coronavirus has done and is still doing profound damage".
He told MPs that despite the GBP280 billion of support already committed to protecting the economy the damage done by the virus has been "acute".
"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."
Sunak said the OBR expects the UK 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%, by 7.3% in 2022, then 1.7%, 1.6% and 1.7% in the last three years of the forecast.
By David Hughes, PA Political Editor
source: PA
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