Britain faces years of austerity after government’s massive coronavirus bailouts and an estimated 2.75 million without a job by June

Michael Gove hinted at looming austerity today amid grim warnings of a 10 per cent hit to GDP and the jobless total hitting 2.75 million by June.

THE Cabinet minister said it was right to put the UK into lockdown to limit the spread of the disease, even though it meant spiralling UK debt, as you cannot ‘put a price on lives.’

But he said the massive hole left in the country’s finances by rescue packages for workers and businesses will need to be paid off ‘in due course.’

The tough message came as forecasters said the impact on UK plc from coronavirus will be many times greater than from the credit crunch.

Investment firm Nomura expects an unemployment rate of 8 per cent in the next quarter, up from just 3.9 per cent in January.

That will spark a huge increase in the cost of benefits for the government, putting the finances under more pressure.

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Written by

Samantha Day


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