Boris Johnson gathered his Cabinet in Downing Street this morning to rubber stamp the government’s Budget plans as ministers scramble to respond to the worsening coronavirus outbreak.
The Prime Minister met with his top team after it emerged overnight that Health Minister Nadine Dorries had tested positive for the disease – the first MP to do so.
Tackling the continuing spread of coronavirus will be at the heart of Chancellor Rishi Sunak’s address this afternoon and he is expected to announce a raft of measures to help the NHS and businesses cope.
Meanwhile, in a sign of the increasingly proactive official response to the outbreak the Bank of England this morning slashed its key interest rate by half a per cent to 0.25 per cent.
The move is designed to combat the ‘economic shock’ which is now expected to be caused by coronavirus.
The central bank said in a statement that the decision to cut interest rates had been supported by all nine members of its powerful Monetary Policy Committee and would ‘help support businesses and consumer confidence at a difficult time’.
Mr Sunak will deliver his first Budget as Chancellor at lunchtime and he will try to walk the tightrope of showing the UK is prepared for the impact of coronavirus while also demonstrating the government is delivering on its domestic priorities.
On the latter point, Mr Sunak will confirm plans to invest ‘record amounts’ on improving the UK’s key infrastructure like roads, railways and broadband.
Some £600 billion will be made available for the infrastructure war chest – treble the typical level of spending which will take public investment to its highest level since the 1950s.
A manifesto pledge to increase the threshold for paying national insurance will be honoured, giving 30 million workers an immediate tax cut of £100.
A ten-year freeze on fuel duty is likely to remain in place and £2.5 billion will be made available to repair 50 million potholes over the next five years.
Rishi Sunak, pictured in the Treasury last night, will today unveil his Budget which will include a raft of measures to better prepare the UK to combat the impact of the coronavirus
Boris Johnson gathered his Cabinet in Downing Street this morning to sign off the Budget. Business Alok Sharma (left) and Health Secretary Matt Hancock are picture arriving
Liz Truss (left), the International Trade Secretary, and Attorney General Suella Braverman were also pictured arriving at Number 10
However, those announcements are likely to be totally overshadowed by the government’s response to the coronavirus crisis.
Government sources acknowledged that today’s Budget will be judged on whether the Chancellor can deliver the confidence needed to stop the economy plunging into recession due to anticipated disruption.
‘Whatever we say, this will become known as the corona Budget,’ said one insider last night.
‘It is the number one priority and the scale of the Budget measures will reflect that.’
Mr Sunak is expected to pledge billions of pounds to shore up the economy in the weeks and months ahead.
The Chancellor, whose Budget has had to be rewritten as the deadly virus has spread, will unveil a string of measures to try to save solid businesses from bankruptcy.
As the outbreak takes grip, advance bookings for hotels, restaurants and bars this summer have halved, according to industry group UK Hospitality.
Some firms are being hit by a shortage of supplies from virus-ravaged China.
Today’s Budget measures will include allowing firms to defer tax payments in order to improve cash flow.
Ministers have also examined the idea of offering struggling firms interest-free loans and the ability to apply for financial help from a hardship fund.
Mr Sunak will pledge to give the NHS whatever resources it needs to tackle the biggest challenge in its history.
Today’s Budget package will also confirm reforms to statutory sick pay, allowing workers to receive it from the first day of illness rather than the fourth.
The Office for Budget Responsibility is expected to downgrade its forecast for economic growth, and business organisations are warning of potentially fatal cashflow problems for some firms.
The deputy chief medical officer warned yesterday that the start of the peak of the epidemic was expected within a fortnight.
The number of confirmed cases of coronavirus yesterday jumped by 63 to 382, and the UK recorded its sixth death.
Mr Johnson will chair another meeting of the emergency committee Cobra tomorrow.
It will discuss whether the UK needs to switch formally from trying to contain the virus to a strategy of trying to delay a full-blown epidemic.
This would quickly lead to ‘social distancing’ measures such as asking employees to work from home and to stay at home if they have even mild cold symptoms. Schools could be closed and mass gatherings banned.
Boris Johnson will chair another meeting of the emergency committee Cobra tomorrow. It will discuss whether the UK needs to switch formally from trying to contain the virus to a strategy of trying to delay a full-blown epidemic
Mark Carney, the governor of the Bank of England, today announced interest rates were being slashed to 0.25 per cent amid the coronavirus outbreak
Mr Johnson is today facing growing calls to get tested for coronavirus after Ms Dorries became the first MP diagnosed with the disease.
Ms Dorries has revealed she has put herself into isolation, just days after attending a reception at Number 10 with the PM.
The Tory MP gave a speech in the Commons on Wednesday night, was in the tea rooms with other politicians, and held a surgery on Saturday for 50 of her constituents.
She is believed to have started feeling ill on Thursday, before deteriorating the following day.
Tests confirmed last night that the 62-year-old had the virus and she is now said to be recovering – although she voiced fears for her 84-year-old mother, who is living at her home and ‘began coughing’ yesterday.
Officials are tracing everyone she has been in contact with since contracting the virus.
However, Downing Street has refused to say whether the PM will be tested. As of yesterday morning, he had not been.
Mr Johnson attended a Commonwealth Day service at Westminster Abbey with the Queen on Monday.
Chancellor Rishi Sunak will devote £2.5billion of Budget money to the war on potholes
By DANIEL MARTIN for the Daily Mail
Rishi Sunak will unveil a multibillion-pound drive to ‘eradicate the scourge’ of potholes throughout the country.
The Chancellor will use his Budget speech today to pledge to spend £2.5billion on repairing 50million potholes over the next five years.
Drivers have been annoyed in recent years about disruptive works caused by building cycle and bus lanes while roads has worsened.
Mr Sunak will say the pothole money will be targeted at the South West, the North West and the east of England. The first half a billion will be spent this year.
Rishi Sunak will unveil a multibillion-pound drive to ‘eradicate the scourge’ of potholes throughout the country. (Above, file photo of potholes in a street in Harlow, Essex)
The Treasury said action is needed to improve infrastructure and deal with a situation where 90 per cent of insurance claims are related to pothole damage.
The Chancellor said: ‘We can’t level up Britain and spread opportunity if we are spending our journeys dodging potholes and forking out for the damage they cause.
‘It’s vital we keep roads in good condition. That’s why we are going to eradicate the scourge of potholes in every part of the country.
‘This funding will fill millions of potholes every year – speeding up journeys, reducing vehicle damage and making our roads safer.’
Mr Sunak said funding will also be available for local authorities to undertake long-term road resurfacing works to prevent potholes from appearing.
Luke Bosdet, of the AA, said tackling potholes was welcome but warned it must not be focused solely on major routes, leaving minor roads and residential streets ‘plagued’ by potholes.
But shadow chancellor John McDonnell branded the move a gimmick. He said the ‘Tories are repeating their mistake of the last 10 years’ by focusing on a ‘gimmicky grab-bag of projects’ which will only disappoint.
John O’Connell, chief executive of the TaxPayers’ Alliance, said: ‘The Government is right to prioritise frontline problems like potholes, but funding should be found from other bloated budgets, not increases to the already burgeoning tax burden.’
Mr Sunak has already announced that the Budget will include £100million to toughen up community sentences, strengthen the probation service and support victims of assault.
And some £9million will go towards a war on fly-tipping and the tampon tax will be abolished from 2021. Cash for flood defences will double to £5.3billion and £5billion will be used to bring in faster broadband.