The Chancellor of the Exchequer Rishi Sunak has warned that the UK’s “economic emergency has only just begun”, as he revealed that the Office for Budget Responsibility (OBR) has forecast the economy will contract this year by 11.3% - the largest fall in output for more than 300 years.
In his Spending Review for 2021-22, the Chancellor announced that the UK is forecast to borrow £394bn - accounting for 19% of GDP, which is the highest recorded level of borrowing in peacetime history. But he added: "The cost of inaction would have been far higher." He revealed that the deficit will fall to £164bn next year and to £105bn in 2022-2023. Sunak said that the UK's economic output is not expected to return to pre-crisis levels until the fourth quarter of 2022, and added that the "economic damage is likely to be lasting". This means that by 2025 the economy will be 3% ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
