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Budget 2020: UK growth 'to be slowest since 2009' | |
(32 minutes later) | |
The British economy will grow at the slowest pace since the financial crisis this year, according to the government's spending watchdog. | |
The Office for Budget Responsibility (OBR) cut its 2020 growth forecast to 1.1%. | |
This would be the weakest performance since 2009. | This would be the weakest performance since 2009. |
It came as the chancellor unveiled a £30bn package to help the economy cope with the coronavirus outbreak. | |
Slower growth | |
A year ago, the OBR predicted the UK economy would grow by 1.4% this year. | A year ago, the OBR predicted the UK economy would grow by 1.4% this year. |
Chancellor Rishi Sunak said a weaker global backdrop would drag down UK growth. | |
The economy is expected to rebound in 2021, with growth of 1.8%, before moderating to 1.5% in 2022 and 1.3% the following year. | |
However, the forecasts were made before the extent of the coronavirus outbreak in the UK became clear. | However, the forecasts were made before the extent of the coronavirus outbreak in the UK became clear. |
They do not take into account the emergency government stimulus measures or the cut in UK interest rates announced earlier on Wednesday. | |
There are currently 382 cases of the virus in the UK, and this number is growing. | There are currently 382 cases of the virus in the UK, and this number is growing. |
Fighting the virus | |
Mr Sunak unveiled £7bn of emergency funding to help people deal with the virus, alongside at least an extra £5bn for the NHS. | |
He said the outbreak would have a "significant impact" on the economy. | |
But he also said extra spending and investment would provide "security today" and "prosperity tomorrow". | |
It came as the chancellor unveiled a three-point plan to tackle the coronavirus, including: | |
Mr Sunak warned that the coronavirus would hit spending and trigger a temporary disruption to the economy. | |
He warned that a fifth of Britain's workforce could be off work at any one time. | |
The extra cash for the NHS, families and businesses comes on top of an extra £18bn earmarked by the chancellor to boost the economy. | |
Mr Sunak said the government would do "everything we can to keep this country and our people healthy and financially secure". |