UK earmarks £5bn emergency response fund for Coronavirus

UK earmarks £5bn emergency response fund for coronavirus
Finance Minister Rishi Sunak said on Wednesday he would set aside £5 billion ($6.5 billion) to help Britain’s National Health Service and other public services tackle the coronavirus outbreak.
In his first annual budget statement to parliament, Sunak said he would go “further if necessary”.
In September, the government said it would raise spending on the NHS in England by 3 per cent more than inflation in 2020/21 to £129.9 billion, excluding longer-term investment.
The government also said annual NHS spending in 2023/24 would be £33.9 billion higher than in 2018/19.
Similarly, Britain pledged to do whatever it takes to protect the economy from the impact of coronavirus, shortly after the Bank of England slashed interest rates in a double-barrelled stimulus package to tackle the risk of a recession.
Sunak said the economy faced a “significant impact” from the spread of the virus, even if the hit would be temporary, and unveiled a £30 billion ($39 billion) fiscal stimulus plan.
“Our economy is robust, our public finances are sound, our public services are well-prepared,” he said as he began an annual budget speech to parliament on Wednesday.
“I will do whatever it takes to support the economy.”
Sunak, who has only been in the job for a month, announced a package of measures to help companies facing a cash-flow crunch, including a year-long suspension of a property tax paid by smaller firms.
He also said companies and self-employed people would be able to defer tax payments and he relaxed sick pay qualification rules for workers.
Prime Minister Boris Johnson had hoped the first tax-and-spending plan of his new government would showcase his plans to direct investment towards poorer regions, where voters helped him to a big election victory in December.
But with medical officials warning of an expected jump in coronavirus cases in the coming weeks, Sunak has new spending priorities that could force him to relax the government’s self-imposed borrowing rules.
Britain’s economy unexpectedly flat-lined in January even before the impact of the coronavirus kicked in, according to official data published on Wednesday.
Reuters/NAN.