There’s a limit to how much Britain can spend its way out of this crisis

Editorial: Rishi Sunak’s measures may sound good, but the UK will eventually be unable to sustain borrowing at realistic levels of interest

The chancellor addresses the media in Downing Street (PA)

Whatever it takes. These words may soon turn out to be the most expensive in British peacetime economic history. They form Rishi Sunak’s catchphrase, a pledge so awesome that its very mention could rescue the British economy. Such salvation comes at a cost, however.

According to the latest research from the British Chambers of Commerce and the Resolution Foundation, the innocuous-sounding Job Retention Scheme will be used by about half of the private sector. In reality, the cost of the vast wage subsidy could be as high as £40bn for the first three months of operation. Overall, the various official support measures – including the recently announced £750m package for charities – could double the UK’s national debt.

Such a ballooning in the national debt hasn’t been seen since the Second World War. Even though it seems in poor taste to think about money at a moment such as this, the Treasury is right to fret about spending “whatever it takes”, even if there seems to be no alternative.