UK budget: Coronavirus, Brexit are double whammy for economy (DW) [View all]

DW
Europe
10/03/2020 | by Rob Mudge

Even the best-laid plans can go awry. Rishi Sunak's first budget as the UK's chancellor of the exchequer was supposed to pave the way for an economic "golden era." Then COVID-19 happened, forcing Sunak to change tack.

... Sunak has been forced to hastily rewrite his budget plans as a result of the coronavirus outbreak. He's promised that the already beleaguered National Health Service (NHS) will get extra cash to counter the effects of the impact, including funds for test centers at hospitals and to purchase testing kits. 

The other elephant in the room is Brexit. Preparations to leave the EU have already cost the taxpayer £4.4 billion (€5.1 billion, $5.7 billion). In total £6.3 billion have been set aside to cover the costs, taking into account the possibility of a no-deal Brexit.

That scenario could scupper Prime Minister Boris Johnson's vision for a new economic dawn. Some forecasts predict that the UK could be mired in a period of stagnation over the next 10-15 years, with growth averaging little more than 1% per year.

https://www.dw.com/en/uk-budget-coronavirus-brexit-are-double-whammy-for-economy/a-52701946