Chancellor Rishi Sunak says there is "likely to be a temporary disruption to our economy."

"On the supply side, up to a fifth of the working-age population could need to be off work at any one time.

"And business supply chains are being disrupted around the globe. This combination of people being unable to work... and businesses being unable to access goods… will mean that for a period our productive capacity will shrink.

"There will also be an impact on the demand side of the economy, through a reduction in consumer spending," Mr Sunak says.

Chancellor Rishi Sunak has said he expects coronavirus to have a "significant impact" on the UK economy.

"But it will be temporary," he told Parliament.

"People will return to work. Supply chains will return to normal."

Mr Sunak said the Budget would provide for "security today" but he said it was also a plan for "prosperity tomorrow".

"It is a Budget that delivers on our promises to the British people. It is a Budget of a government that gets things done."

Chancellor Rishi Sunak opens his Budget speech with a statement about coronavirus.

"I want to get straight to the issue most on everyone’s mind – coronavirus Covid-19.

"I know how worried people are. Worried about their health, the health of their loved ones, their jobs, their income, their businesses, their financial security.

"And I know they get even more worried when they turn on their TVs and hear talk of markets collapsing and recessions coming. People want to know what’s happening, and what can be done to fix it," he tells MPs.

Chancelor Rishi Sunak has stepped up to the despatch box to deliver his first Budget, less than a month into the job.

As a reminder, we're expecting him to announce more than £600bn for infrastructure projects over the next five years and extra money to fill in potholes.

But coronavirus is expected to dominate, after Mr Sunak told the cabinet that his Budget's measures to cope with the outbreak "will make the UK one of the best placed economies in the world to manage the potential impact of the virus".

Image source, Getty Images

The freeze on fuel duty is set to continue, the Sun newspaper reports, external.

The tax freeze has been in effect for a decade.

Tom Waters, Senior Research Economist at the Institute for Fiscal Studies, said the freeze will cost the Treasury an extra £800m this year in lost tax receipts:

"Had the government stuck to the plans it inherited in 2010, we estimate that fuel duty receipts would have been approximately £10bn higher this year (2019 to 2020).

"Freezing the duty again will add another £0.8bn or so to that figure.”

House of Commons
Parliament

SNP Westminster leader Ian Blackford also asks about sick pay for people who are told to stay away from work due to the coronavirus.

He asks what the statutory sick rate pay is in Ireland, compared to the UK.

Boris Johnson says it is not his "duty" to compare rates but says those on universal credit will "get they help they need from day one".

In a follow-up, Mr Blackford says the Irish government has raised sick pay to £266 per week, and notes that it covers those who are self-employed, but is £94.25 a week in the UK. He asks for a commitment that it will go up to the average EU level.

Mr Johnson says the UK has an "extensive" benefits system and the NHS is "very well managed".

Jaguar Land Rover has said the one of its UK workers has tested positive for coronavirus.

The company said: "We can confirm that an employee based at one of our satellite facilities in the UK has tested positive for COVID-19 and is self-isolating at home.

"We have informed anyone who has been in close contact with them at work and told them also to self-isolate for 14 days.

"The health of our workforce and anyone who has been in contact with them is our primary concern.

"We are following all government and NHS advice and liaising with Public Health England."

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Parliament

Mr Corbyn uses his last question to accuse the prime minister of making "offensive" comments about single mothers, Muslim women and working women.

"His words are backed up by offensive and discriminatory polices," says the Labour leader.

He asks the PM to apologise and "ensure these policies are reversed by the government".

The PM hits back: "I am proud about what this government has done to promote the rights of women."

He adds that the Conservatives are "the only party that has produced not one but two women prime ministers".

"Wouldn't it be amazing if that party [Labour] would produce a female leader of its own - don't hold your breath."

Image source, AFP

As Chancellor Rishi Sunak prepares to deliver his first Budget, the European Central Bank president Christine Lagarde has reportedly warned European Union leaders to spend heavily in the fight against the coronavirus outbreak or pay the price of passivity.

Speaking to the bloc's leaders in a conference call late last night, she said there was a risk of a financial crisis if they did not increase spending to deal withe the outbreak, Reuters reported.

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Parliament

Labour leader Jeremy Corbyn pays tribute to the six people who have so far died from the coronavirus, and gives his best wishes to health minister Nadine Dorries, who has been diagnosed with the virus.

For his opening question, Mr Corbyn asks the PM to guarantee "emergency legislation" to guarantee sick pay for those on zero-hours contracts who stay at home because of the virus.

In reply, the prime minister says the government has already taken action to bring sick pay forward.

He pledges that people on "all types of contracts" will get the "protection they need," and people should not be penalised for staying at home.

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Parliament

The first question comes from Conservative Gary Sambrook.

He asks for more investment to build decent homes on brownfield sites.

Boris Johnson says the MP is "spot on" adding that "he will be hearing more about that in half an hour's time".

Image source, Getty Images

Coronavirus could hit the next round of Brexit trade talks, Cabinet Office minister Michael Gove has said.

He told a committee of MPs that negotiations and face-to-face meetings could be hit by the spread of the virus.

"It is a live question," he said. "We have had indications today from Belgium that there may be specific public health concerns."

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Parliament

Matt Hancock will make a statement to the House of Commons on coronavirus later this evening.

Speaker Sir Lindsay Hoyle says the health secretary's statement will include advice to the House following the announcement that health minister Nadine Dorries has tested positive for the virus.

Image source, AFP

After trading went up by almost 2% earlier this morning, the FTSE 100 index of share prices for the largest companies listed in London has shed some of those gains.

Investors are digesting news that the Bank of England has taken emergency measures to prop up the economy as the UK deals with the coronavirus outbreak by lowering interest rates.

The index is currently up by 0.6%, considerably lower than its earlier peak of 1.8%.

The FTSE 250 index of more UK-focused shares is up 0.9%, lower than its high of 1.4%.

Laura Kuenssberg
BBC political editor

Speaking on Politics Live on BBC Two, BBC political editor Laura Kuenssberg says the chancellor's task is "a bit like juggling water".

"He is barely a month into the new job and the government is only a few months on from winning an election - that should have given them a bit of time to think about what they want to do.

"The impact of coronavirus has changed all of that. This has changed the complexion of everything the government is looking at.This is going to feel a bit like an emergency budget.

"I think we are going to see some quite dramatic interventions," she says.

Chancellor Rishi Sunak lines up in front of Number 11 Downing Street with his team of Treasury ministers, for the traditional Budget Day photocall.

Image source, BBC News

Image source, Getty Images

Official figures published earlier showed that UK GDP growth - that is, growth in the value of British economic activity - was flat in the three months to January., external

What does this mean, especially in the context of coronavirus?

According to Ayush Ansal, chief investment officer at Crimson Black Capital, it matters.

"For many, the performance of the economy in January will feel almost irrelevant given the coronavirus-fuelled events of the past few days, but it’s not.

"This weak GDP data suggests the UK economy is going into a period of potentially radical uncertainty with zero momentum," he says.

Chancellor Rishi Sunak has told the cabinet that today's Budget, which he is due to deliver in an hour's time, will focus on spending measures to limit the economic impact of the coronavirus outbreak.

The chancellor told his colleagues that his Budget's measures to cope with Covid-19 "will make the UK one of the best placed economies in the world to manage the potential impact of the virus", Downing Street said.