Covid pandemic support from government reaches £407 billion, Rishi Sunak announces

Cost of package has meant borrowing comparable to world wars, says chancellor

The government’s spending on coronavirus support has reached £407 billion over the course of the pandemic, following measures announced by Rishi Sunak in his Budget.

Announcing his Budget to the House of Commons, Mr Sunak said that borrowing ot deal with the Covid-19 crisis was “comparable only with the amount we borrowed during the two world wars”.

Mr Sunak said that measures announced in today’s Budget, including the extension of furlough payments, VAT breaks, business rates relief and the Universal Credit uplift, will add £65bn to the cost of the government’s support package.

He told MPs: “At this Budget, we are announcing an additional £65 billion of measures over this year and next to support the economy in response to coronavirus.

“Taking into account the significant support announced at the spending review, this means our total Covid support package this year and next is £352 billion.

“Once you include the measures announced in the spring Budget last year ... total fiscal support from this government over this year and the next amounts to £407 billion.

“Coronavirus has been one of the largest, most comprehensive economic shocks this country has ever faced. And, by any objective analysis, this government has delivered one of the largest, most comprehensive and sustained responses this country has ever seen.”