Measures to protect UK economy predicted to cost £123bnpublished at 13:51 British Summer Time 14 May 2020
UK government measures to protect the economy during the coronavirus crisis are forecast to cost £123bn for the current financial year, the Office for Budget Responsibility (OBR) said.
The OBR said it also estimates that the direct impact of policy measures, such as the furlough scheme, will raise cash borrowing by £103.7bn for the year.
On Tuesday, UK Chancellor Rishi Sunak announced that the furlough scheme - ie paying a percentage of wages to workers on leave because of coronavirus - would be extended to October.
The government is also offering grants for self-employed people whose businesses are affected by coronavirus.
The OBR estimated that a three-month lockdown, followed by a partial lifting for three months, would necessitate public sector borrowing of £298.4bn.
That represents a £25.5bn increase on the forecast from last month.
The OBR estimates that the UK economy is likely to contract by 35% in the second quarter of 2020, before bouncing back quickly.