Budget 2020: ‘No apology’ for borrowing, says Chancellor

Rishi Sunak

Image caption

Rishi sunak delivered the Budget to the Commons on Wednesday

Borrowing more money to invest into the UK is “the right economic thing to do”, the chancellor has said.

Rishi Sunak told the BBC that interest rates were at a “multi-decade low” and he was “not going to make an apology” for the Budget, which included included a £30bn package of investment.

The Bank of England announced a cut in interest rates on Wednesday.

But the Resolution Foundation warned of a £575 a year blow to households, even before the impact of coronavirus.

The think tank said the mark down of the UK economy by the Office of Budget Responsibility, without taking the outbreak into account, was “incredibly grim and yet still unbelievably optimistic”.

Its chief executive Torsten Bell said: “In reality, once we take the economic impact of coronavirus into account, this is the weakest official growth outlook on record.”

Labour’s John McDonnell told the BBC’s Today programme he welcomed more investment from the government, but “10 years of austerity brought the country to our knees” and the Budget was “only going part way to making up” for Tory cuts.

BBC News

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