Rishi Sunak, Britain's Chancellor of the Exchequer, leaves 11 Downing Street to deliver his budget to Parliament, in London, Britain on March 11, 2020. (Photo by Tim Ireland/Xinhua)
LONDON, March 11 (Xinhua) -- The British government on Wednesday pledged 30 billion pounds (about 39 billion U.S. dollars) in a stimulus plan to shore up Britain's economy amid the COVID-19 outbreak while unveiling huge spending plans to boost infrastructure and innovation in its first post-Brexit budget.
Speaking to MPs in the House of Commons (lower house of the parliament), Chancellor of the Exchequer Rishi Sunak said the British economy faces a "significant impact" from the COVID-19 outbreak, even if it is likely to be "temporary".
Of the 30-billion-pound (about 39 billion dollars) in extra spending, 12 billion pounds (15.4 billion dollars) will be specifically targeted at coronavirus measures, including at least 5 billion pounds (6.4 billion dollars) for the NHS in England and 7 billion pounds (9 billion dollars) for business and workers across the country.
He stated that the response to coronavirus will be temporary, timely and targeted and has been designed to work in conjunction with measures announced by the Bank of England, which earlier Wednesday cut the basic interest rate by 50 basis points to 0.25 percent.
Saying up to a fifth of the working age population in Britain may be off work at any one time, with business supply chains being disrupted around the globe, Sunak admitted that for a period the country's productive capacity will shrink, but people will return to work and supply chains will return to normal.
"There will also be an impact on the demand side of the economy, through a reduction in consumer spending. The combination of those effects will have a significant impact on the UK economy. But it will be temporary," he said, adding "I'm confident that our economic performance will recover."
In other budget measures, the chancellor announced more than 600 billion pounds (771.4 billion dollars) for road, rail, housing and broadband projects over five years.
He announced plans for Treasury offices in Scotland, Wales and Northern Ireland and a "new economic campus in the north, with over 750 staff from the Treasury".
He also promised an additional 640 million pounds (822.9 million dollars) for the Scottish government, 360 million pounds (462.9 million dollars) for the Welsh government, 210 million pounds (270 million dollars) for Northern Ireland and 240 million pounds (308.6 million dollars) for new city and growth deals.
Sunak said he was providing 200 million pounds (257.1 million dollars) for local communities in England to build flood resilience and would double investment in flood defences.
On innovation, the budget sets out plans to increase public R&D investment to 22 billion pounds (28.3 billion dollars) per year by 2024-25. The government will invest that money in the people, ideas and industries ranging from nuclear fusion to electric vehicles and life sciences.
"The Office for Budget Responsibility say that today's budget will be the biggest sustained fiscal boost for 30 years," said Sunak.
Commenting on the budget, Jonathan Geldart, director general of the Institute of Directors, said "with the coronavirus outbreak threatening a cashflow crunch, measures to cut costs and support loans to businesses are on the money. Wider reliefs around business rates and job taxes will also buoy firms as they look to weather COVID-19's implications."
Adam Marshall, director general of British Chambers of Commerce, said: "much to welcome for UK business communities in the 2020 budget. Pragmatic support on coronavirus, increased investment in infrastructure, sharper incentives for business investment."
"Increases to infrastructure spending and sharper investment incentives will help businesses grow over the longer-term," Marshall added.
Rishi Sunak, Britain's Chancellor of the Exchequer, poses for photographs as he leaves 11 Downing Street to deliver his budget to Parliament, in London, Britain on March 11, 2020. (Photo by Tim Ireland/Xinhua)
Rishi Sunak (4th R), Britain's Chancellor of the Exchequer, poses for a picture with members of his treasury team as he leaves 11 Downing Street to deliver his budget to Parliament, in London, Britain on March 11, 2020. (Photo by Tim Ireland/Xinhua)
Rishi Sunak, Britain's Chancellor of the Exchequer, poses for photographs as he leaves 11 Downing Street to deliver his budget to Parliament, in London, Britain on March 11, 2020. (Photo by Tim Ireland/Xinhua)
