Budget live: Rishi Sunak spends on coronavirus, roads and rail in 'biggest giveaway since 1992'
Chancellor triples investment in transport and infrastructure spending, freezes fuel and alcohol duties, and removes VAT on digital publications
- Key points from budget 2020 - at a glance
- Chancellor makes 30bn pledge to protect economy from coronavirus
- Coronavirus - latest updates
- Bank of England announces emergency rate cut
6.12pm GMT
Rishi Sunak, who replaced Sajid Javid only weeks ago, said he would intervene to protect public services and the economy over the coming months while providing the biggest boost to public investment for several generations to drive longer-term growth.
Delivering his first budget speech to the Commons, Sunak said the virus outbreak would be temporary but costly for businesses and the economy.
Related: Chancellor makes 30bn budget pledge to protect economy from coronavirus
Related: Key points from budget 2020 - at a glance
6.08pm GMT
The road to hell is paved with good intentions, and in his budget the chancellor, Rishi Sunak, headed off down the motorway towards climate catastrophe, all the while proclaiming his intention to protect the environment.
"Over 27bn of tarmac," he announced, for 4,000 miles of major new roads. In stark contrast, low-carbon transport was put in the slow lane, getting 1bn.
Worse, Sunak flunked a golden opportunity to end the decade-long freeze on fuel duty that has pushed up traffic and pollution and suppressed bus and train travel. The oil price is now plummeting, but even if it had been raised drivers might not have seen any change in the price at the pump.
Transport emissions are now the biggest contributor to the UK's carbon emissions and they are rising; 90% come from the roads. Emissions from transport are a key reason the government is on track to miss its own legally binding carbon targets.
The other key reason is the UK's terribly energy inefficient buildings, which lose heat up to three times as quickly as homes in neighbouring countries. Making homes cleaner, cosier, and cheaper to heat, is a no-brainer. Yet there was not a single word on this in Sunak's speech or the 125-page budget document.
This failure really matters, with the UK hosting a crucial UN climate in just eight months' time. The summit, Cop26, in Glasgow, is a pledging party at which the world's nations must offer much bigger emissions cuts to head off the climate crisis. The host needs to start the party with a splashy pledge, but Sunak just tossed in a crumpled fiver found in a back pocket.....
More here:
Related: Road to hell: budget tarmacs over climate ambition
6.02pm GMT
Here is a verdict on the budget from the Resolution Foundation, the thinktank specialising in equality and low pay issues. Among other points, like the TUC (see 4.11pm), it is critical of some of the measures to help people who need to take time off work because of coronavirus. It says:
The government's failure to extend statutory sick pay (SSP) to two million low earners is unwise, leaving them reliant on UC with its waits and means tests. The foundation notes that with SSP set at 94.25 a week, and UC and ESA worth just 73.10 a week (or 57.90 for under 25s), a typical self-employed worker on 284 a week could still face their primary income falling by three-quarters if they need to self-isolate, while a typical worker eligible for SSP only would lose over two-thirds of their normal pay.
For the years ahead, the chancellor has increased public spending significantly while being very reluctant to raise taxes to pay for it. While the Conservative government even a few years ago aimed for a smaller state and zero borrowing, these plans mean a bigger state than under Tony Blair paid for by more borrowing than Gordon Brown.
5.54pm GMT
Britain's stock market fell again today, despite Rishi Sunak's promise of the biggest spending splurge in almost 30 years - and the first emergency interest rate cut since 2008.
The FTSE 100 dropped another 1.4%, meaning it's lost more than a fifth of its value this year. You might hope that higher government spending would boost stocks, but clearly the coronavirus crisis (now officially a pandemic) is overshadowing the budget.
While some of the measures were paid for by a) not lowering corporation tax, b) dealing with tax avoidance and c) the end of contributions to the EU (net of the divorce settlement), the problem with the numbers in today's budget is that they do not take into account the cost of dealing with the virus, nor the likelihood of a more serious effect on economic growth and financial markets than the OBR had assumed when finalising its forecasts a few weeks ago.
As a result, we should view these new deficit figures (headline deficit of 2.4% in 2020-21) as an "absolute best case" and we should therefore be braced for the possibility of upward revisions to borrowing and issuance to come.
5.52pm GMT
Despite Boris Johnson's repeated promises to "fix the crisis" in social care, the budget offered few pointers as to how government will address underlying funding problems faced by overstretched services for vulnerable older and disabled people.
The chancellor, Rishi Sunak, announced that local government would be able to draw upon a short term 5bn coronavirus emergency fund shared with the NHS to support social care services and vulnerable people affected by Covid-19.
We are about to rely on these threadbare services to keep thousands of vulnerable patients out of hospital - and yet we still will not give them the funding and reform they have desperately needed for years. Coronavirus may serve as a reminder that inaction has consequences.
The fact that the chancellor appears to have completely ignored social care is astonishing, and crushing for people with dementia. Every day we hear of people with dementia trapped in unacceptable conditions, of families struggling to cover the astronomical cost of dementia care. Coronavirus risks making this crisis into a catastrophe.
5.47pm GMT
From Stefan Rousseau, the Press Association's chief political photographer
Photo du Jour: Chancellor of the exchequer, @RishiSunak leaves 11 Downing St with his Treasury team to deliver his first Budget as Chancellor. By Stefan Rousseau/PA pic.twitter.com/YGBbNohOHw
5.46pm GMT
From the Press Association's Ian Jones
Some historic context to #Budget2020.
Aside from a blip in 2008/09, investment spending as % of GDP has not been consistently at 3% or above since the late 1970s.
Sunak is planning to raise it to 3% by 2022/23 and keep it there. pic.twitter.com/pwBmsy8YDo
5.45pm GMT
From Jack Hunter, from the IPPR North thinktank
OK this is not great
The government has had a year and a half to design its Shared Prosperity Fund, which will replace EU funds and which should be a major part of any 'levelling up' agenda
But there is only a passing reference to it in #Budget2020 pic.twitter.com/ImbVuyvlLc
5.45pm GMT
From Prospect's Tom Clark
Here's THE PLAN - a National Debt 5-10% GDP higher IN PERPETUITY than it was at the moment Cameron came into office
Admittedly, it's not planned to increase, but as the old Smiths song put it "plans have a knack of not coming true" pic.twitter.com/dGg8VBvlOn
5.38pm GMT
Sajid Javid, the former chancellor, used his speech in the budget debate to urge Rishi Sunak not to abandon the fiscal rules that he (Javid) announced during the general election campaign. Under these rules, that were included in the Conservative manifesto, the party committed to: 1) not borrowing to fund day-to-day spending; 2) capping average net public sector net investment at 3% of GDP; and 3) ensuring that debt interest payments don't exceed 6% of government revenue.
Sunak did not formally abandon the three rules. But he said that he would review the fiscal framework, and report back in the autumn, implying that he wants to loosen Javid's rules.
Whilst I welcome the actions that [Sunak] has set out today, he must stand ready to do more as the situation demands, and not wait necessarily for the comprehensive spending review or the next budget.
The British economy is in a strong position to weather the current storm, but we mustn't forget that [Sunak] is only able to deploy that fire power that he has done so today because of the choices consecutive Conservative chancellors have made.
5.25pm GMT
A 5 million pilot project for specialist domestic abuse courts was among initiatives announced in the budget but lawyers warned that the piecemeal approach would not repair the under-resourced justice system. Amanda Pinto QC, chair of the Bar Council which represents barristers in England and Wales, said:
Measures announced in the chancellor's budget to tackle youth crime and provide better support for victims, especially of domestic abuse, are a positive step, but they only tackle part of the problem. A fragmented approach to repairing the justice system is not the answer. We have been calling for 10 key areas of investment across the entire justice system to reverse declining confidence in justice in our country.
We welcome the chancellor's decision to take further steps to address the national crisis of violence against women and girls by putting forward two 15m packages to tackle both sexual violence and domestic abuse, including a pilot scheme of specialist courts for domestic abuse.
However, without a drastically improved funding offer this eye-catching policy announcement looks more like political virtue signalling than a meaningful commitment to ending abuse.
5.24pm GMT
Kate Forbes, the Scottish finance secretary, has asked the Treasury for 'urgent clarification' on how much extra money the Scottish government will get to help cover the substantial costs of coping with the coronavirus outbreak.
Chancellor Rishi Sunak said the devolved government in Edinburgh would get an extra 640m in Treasury funding for everyday policy areas as its share of the extra UK government spending unveiled in Wednesday's budget.
While I'm pleased to see the UK government's economic response to coronavirus following my calls for this at the UK Treasury yesterday, we need confirmation on what this will mean for Scotland.
We require urgent clarification on what funding Scotland will receive from the announcements made by the UK government, at a time when the prospects for the economy and public finances remain very uncertain as the short term impacts of Covid-19 unfold.
People and businesses right across Scotland will see the benefits - with money for broadband, research and development, green technology and support to promote Scottish produce overseas among the many measures we've announced today.
5.20pm GMT
Here is the Guardian's latest Politics Weekly podcast. Rowena Mason is joined by Heather Stewart, Larry Elliott, James Morris and Rachel Wolf to discuss what will make Rishi Sunak's budget a success or failure, the Tory rebellion over Huawei, and how the Labour party should deal with discrimination investigations.
Related: Sunak delivers budget bonanza: Politics Weekly podcast
5.18pm GMT
Tom Clark, editor of Prospect and a former Labour special adviser, on the budget, has posted a good thread on Twitter on the budget. It starts here.
In depth of financial crisis, April 2009 Budget decisions loosened purse strings by 15.7bn (p154 Red book) while signalling tightening would start in months
Today, it's 18bn in loosening in coming year, rapidly building up to 42bn by 2024-25
It's really not enough for George to come out and say, as he has been, "well we fixed the roof, so now we've got room to enjoy the sunshine a bit"
It's a serious splurge, & IF headline deficit matters it will be hard to control even if the economy is OK (which looks like an ask)
Don't over-intellectualise the swerve from austerity to splurge
What we're seeing is simply that politicians care a lot about politics, and not much (and not at all consistently) about economics
Maybe we shouldn't be surprised
5.11pm GMT
One charge levelled against Boris Johnson is that he is actually running a Vote Leave government flying under Conservative party colours as a flag of convenience. Johnson, Michael Gove and Dominic Cummings ran the Vote Leave campaign, and many of their Vote Leave colleagues are in top jobs. Only this morning there were reports that Chris Grayling, another leading Vote Leave campaign, is being lined up to chair the intelligence and security committee. (See 11.03am.)
At one stage during the 2016 referendum campaign Vote Leave started acting like a shadow government and making manifesto promises. In a joint article for the Sun, Johnson, Gove and the Labour MP Gisela Stuart announced that after the UK voted to leave the EU, they would be able to abolish VAT on household fuel bills. They wrote:
In 1993, VAT on household energy bills was imposed. This makes gas and electricity much more expensive. EU rules mean we cannot take VAT off those bills.
The least wealthy are hit particularly hard. The poorest households spend three times more of their income on household energy bills than the richest households spend. As long as we are in the EU, we are not allowed to cut this tax.
4.46pm GMT
The government is committed to levelling up, and Rishi Sunak used that phrase seven times in his speech. That implies measures that help the poor more than the rich. But, when taking decisions about tax, he ended up favouring wealthier families over poorer families.
The Treasury has published a distributional impact assessment (pdf) of the budget and, at first glance, it appears to be a model of progressive policymaking. Look at this chart. It shows the impact of decisions made in the budget and in last year's spending round on households as a percentage of net income. And the poorest 10% of households gained most and the richest 10% gained least.
4.17pm GMT
And these are from Tony Wilson, director of the Institute for Employment Studies, on the budget measures for people who have to take time off work because of coronavirus.
#Budget2020 measures on covid-19 are pretty thin gruel for people affected. SSP unchanged at 94/ week. For a full-time worker on minimum wage, this is a loss of income of around three quarters. Big opportunity missed to increase this and compensate business for the cost. (1/3)
At same time we estimate that ~7 million people aren't entitled to SSP - one in five workers. This just highlights how inadequate Universal Credit has become. At 73/ wk, the standard allowance is one fifth of full-time min wage. Today's budget increases it by 1.25. (2/3)
It's welcome that JCP will no longer require people with covid-19 to attend offices face to face to make a claim. But today mainly shows that our social insurance/ security system is increasingly patchy and threadbare. What happens if/ when we get a full-blown recession? (3/3)
4.11pm GMT
Frances O'Grady, the TUC general secretary, has criticised the government for saying that people who do not qualify for sick pay (the self-employed and low-earners) should claim benefits if they lose out because they need to take time off work because of coronavirus. She says that instead there should be "decent sick pay for all". In a statement she says:
The government's coronavirus plans will leave millions of workers behind. Without urgent action, too many will be plunged into poverty and debt.
Today's announcements won't help the nearly 2m people who miss out on sick pay because they don't earn enough. Telling them to turn to the broken benefits system isn't good enough. We need decent sick pay for all.
4.08pm GMT
Sovereign ratings agency Moody's has given a thumbs up, and a thumbs down, to today's budget.
Senior vice-president Sarah Carlson says the increased spending will boost growth at a difficult time, but at a cost:
The fiscal stimulus announced by Chancellor Rishi Sunak in today's budget should help to support economic growth given the economic headwinds created by Covid-19, but the resulting deterioration in the UK's fiscal position highlights the sovereign's ongoing difficulty in meaningfully reducing the UK's gross general government debt burden from its current high levels.
4.06pm GMT
The full text of Rishi Sunak's budget speech is now here, on the Treasury's website.
4.06pm GMT
This is from Sir Ed Davey, the acting Lib Dem leader, on the budget.
This budget reveals the UK economy was alarmingly weak even before coronavirus. The government is desperate to blame anyone or anything but the reality is that it's the Conservatives' Brexit which is costing Britain's economy dearly.
Whilst the government is taking some action to deal with the Coronavirus, after five years of Tory governments the NHS and our social care sector are chronically under-funded, under-resourced and under-staffed, just at the moment we need them most.
3.55pm GMT
Theresa May, the former Conservative prime minister, has been speaking in the budget debate and, while she did not explicitly criticise the government for spending too much, she urged the government not to abandon "restraint and caution". She told MPs:
I trust in the discussions that were held prior to the delivery of the budget that there was the necessary tension between No 10 and the Treasury in developing this budget.
Generally speaking, prime ministers want to spend money and chancellors want to manage the public finances prudently ...
3.44pm GMT
The OBR chief, Robert Chote, is discussing the fiscal watchdog's new forecasts at a press conference in London now.
He points out that public sector net debt is forecast to hit 2tn in 2024-25 (2,031bn, to be precise).
3.27pm GMT
In its Economic and Fiscal Outlook report (pdf), the Office for Budget Responsibility says Brexit has led to the economy being 2% smaller than it would have been. In paragraph 1.2 it says:
We estimate that the economic effects of the referendum vote have so far reduced potential output by around 2%, relative to what would have happened in its absence. Part of this reflects lower net inward migration, but mostly it reflects weaker productivity growth on the back of depressed business investment and the diversion of resources from production towards preparing for potential Brexit outcomes. Real business investment has barely grown since the referendum, whereas our March 2016 forecast assumed it would have risen more than 20% by now. We expect this shortfall to be partly reversed as the specifics of the trading relationship are clarified, hence reducing uncertainty. But, working in the other direction, we expect the adverse effect of higher trade barriers to build through our five-year forecast period and beyond.
Broadly speaking, we believe that around one-third of the long-run hit to productivity from Brexit has already happened, that another third is likely to come over the forecast period and the rest comes through beyond our forecast horizon.
3.22pm GMT
Rishi Sunak's giveaway budget is going to drive house prices up.
The OBR predicts that house price inflation will hit 7.5% in the third quarter of 2021, then ease back to 4.1% by 2024.
3.06pm GMT
The OBR's forecasts show that the money saved by leaving the European Union is being recycled into substitute UK spending.
That includes support for the farming sector, industrial strategy and science programmes.
3.02pm GMT
Buried in the policy papers published alongside the budget is what would once have been headline news: confirmation that the government intends to impose a "digital sales tax", a 2% levy on the UK revenues of search engines, social media services and online marketplaces, from 1 April.
The move, first announced in the 2018 budget, is an attempt to onshore some of the economic value created by technology companies such as Google and Facebook.
3.00pm GMT
In his budget speech Rishi Sunak said that the coronavirus rescue package he was announcing was worth 30bn. Having announced a series of coronavirus-specific measures, he told MPs:
Those measures are on top of plans that I will set out later in this budget, which provide an additional fiscal loosening of 18bn to support the economy this year.
That means I am announcing today, in total, a 30bn fiscal stimulus to support British people, British jobs and British businesses through this moment.
2.52pm GMT
It's a good budget for media organisations with a paywall, points out our colleague Jim Waterson.
Abolition of online news tax is a massive victory for News UK, who have been campaigning on this for years.
Brilliant news for finances of Times/FT/Telegraph and anyone with hard paywall. Less clear at moment on what it means for those outlets who ask for contributions...
Very loose fag packet numbers:
Times has 300,000 online subs
Hypothetically let's pretend all are at 26pm headline rate = income of 94m a year including VAT.
If they keep the cost to consumer the same, that's a 20m boost to News UK.
Meanwhile, the FT just got *super* loaded.
2.39pm GMT
Here are some extracts from Jeremy Corbyn's speech responding to the budget.
Today's budget was billed as a turning point, a chance to deliver, in particular on the promises made to working class communities during the general election. But it doesn't come close.
The government's boast of the biggest investment since the 1950s is frankly a sleight of hand. It's in fact only the biggest since they began their slash and burn assault on our services, economic infrastructure and living standards in 2010.
We'll only overcome this virus because of the dedication of our NHS staff, carers and public servants.
The steps the government has announced today to head off the economic impact of the coronavirus are obviously welcome but I have some points I wish to raise.
Now one has to believe austerity is over - but it's not true.
According to the Institute for Fiscal Studies, it'd take at least 54bn of current spending this year, excluding health and social care, to get us back to 2010 levels. We've heard nothing approaching that scale from the chancellor today. Without it, the IFS says austerity is baked into our economy.
The government has maintained the freeze on fuel duty without lowering bus and rail fares, showing complacency about the climate emergency.
When the chancellor announced with such aplomb a huge investment in road building across the country - where is the environmental impact assessment being made of that policy?
A huge subsidy mainly benefiting 5,000 people who make an average of 350,000 per year. I can only assume those who fund the Conservative party have had a quiet word with the chancellor and told him to back off.
2.38pm GMT
The government will be taking in more tax, as well as spending more and borrowing more.
The net tax rise announced in the budget reduces borrowing by an average of 5.5bn a year, the OBR says.
2.27pm GMT
In the government's budget red book the most valuable chart is the scorecard (pages 65 to 69), which explains either how much the measures announced will raise (a + number) or how much they will cost (a - number).
There are 62 measures in the table, and another 14 previously announced ones.
2.21pm GMT
The budget includes 'significant increases in departmental spending plans', the OBR confirms - both in terms of current spending, and capital (investment in the future).
And it means that Boris Johnson's government is reversing the Cameron-era cuts.
As regards current spending, the budget completes the reversal of the cuts to real departmental spending per person undertaken by the coalition government.
The turnaround started in the Conservative government's postelection budget in July 2015, but really took hold with the multi-billion pound NHS settlement in June 2018. The capital spending turnaround is more dramatic still - the coalition government's early cuts (which had been a feature of the previous Labour government's March 2010 Budget plans) will have been almost fully reversed this year. Spending is set to be around a third higher at the end of our forecast than in 2010-11.
Rather than aim for budget balance and a clear decline in the debt-to-GDP ratio - as Philip Hammond did initially as Chancellor - the new administration is content to borrow significant sums on an ongoing basis and merely to stabilise the debt-to-GDP ratio.
2.13pm GMT
This chart from the OBR shows clearly how the government is planning to borrow a lot more, to fund its infrastructure spending.
2.08pm GMT
Today's budget is the biggest giveaway since Norman Lamont was chancellor.
Turning to those policy decisions, the government has proposed the largest sustained fiscal loosening since the pre-election budget of March 1992 (which was reversed within months after the UK left the European exchange rate mechanism in September that year).
Relative to our pre-measures baseline forecast, the government's policy decisions increase the budget deficit by 0.9 per cent of GDP on average over the next five years and add 125 billion (4.6 per cent of GDP) to public sector net debt by 2024-25.
2.06pm GMT
You can read all the Treasury's budget documents here.
Here is the red book (pdf), the key document with all the budget tables.
1.59pm GMT
Jeremy Corbyn has just been delivering his response now (highlights coming soon), and he faced a challenge because Rishi Sunak has just delivered a set of measures that would have sat very happily in a Labour budget. The opposition has spent the last five years at least denouncing austerity and demanding higher spending on public services and a massive programme of investment. And that is what the Treasury has delivered. You can quibble about the details, we have not had time to read the small print yet, and these announcements will not repair all the damage done to services over the last decade, but on the basis of these headline figures the profile of public spending will look noticeably different over the next few years. This is from the IFS's Paul Johnson.
Perhaps most remarkable announcement is 2.8% p.a. real growth in current public service spending. As Chancellor says this is much faster than economic growth. With investment spending rising even faster, something has to give.
1.48pm GMT
Faced with the gloomiest economic clouds since his hedge fund days, Rishi Sunak has taken a sensible choice - spend!
People have joked about Dominic Cummings writing the budget - but the chancellor's boast that infrastructure spending will boost growth in dark times could have been written by John Maynard Keynes.
Growth forecasts revised down for three of the next four years - and that's before adjusting for the impact of coronavirus. #Budget2020 pic.twitter.com/1CzDXb226V
The deficit this fiscal year (2019-20) is now forecast to be 2.1% of GDP, rising to 2.4% in 2020-21 and 2.8% in 2021-22. #Budget2020 pic.twitter.com/CFLL467Gbh
Public sector net debt in 2024-25 is forecast by the OBR to be 1661bn (75% GDP). Stronger growth in 2016 & 2017 pushed debt down, and further forecast falls are driven mainly by withdrawal of the Term Funding Scheme. But today's BoE announcement could push debt up by 100bn. pic.twitter.com/0BQXP2WqNR
1.37pm GMT
Sunak says this is a budget delivered in challenging times.
It delivers security. But it also lays the foundation for prosperity, he says.
1.37pm GMT
The budget is the biggest day in Sunak's career, but does he already have an eye on the future? Our colleague Aditya Chakrabortty suggests he might....
Sunak has nicked this call-and-response trick from Johnson. More clearly than any other chancellor i've seen in the past 10 years of Tory rule, he's using this outing as a leadership audition.
1.36pm GMT
Sunak says he is launching a new spending review, to conclude in July.
The OBR says this budget is the largest sustained fiscal boost for 30 years, he says.
1.35pm GMT
Sunak says work will start on building the 40 new hospitals promised by the government.
1.34pm GMT
Sunak says he is changing the rules on pensions that have led to some doctors deciding not to work because it is not worth their while given the loss in pension they experience. The tapered annual allowance will be raised to 90,000.
1.33pm GMT
Sunak says there will be national insurance relief for employers that hire veterans.
1.33pm GMT
Sunak says the NHS should not be abused. The immigration health surcharge will rise to 620, although there will be a discount for children, he says.
1.32pm GMT
Sunak says he will expand the affordable homes programme.
Extending the Affordable Homes Programme with a new, multi-year settlement of 12 billion. #Budget2020 pic.twitter.com/BSqZ9HqM9z
1.28pm GMT
Sunak says it is not right that digital publications are subject to VAT.
1.27pm GMT
Sunak says he will spend 1.5bn over five years to improve the quality of the further education estate. He says this was a cause his predecessor Sajid Javid was passionate about.
1.26pm GMT
Sunak says every region in the country will get funding for specialist maths schools.
And there will be 25,000 per secondary school for arts activities.
1.25pm GMT
Sunak says the government will also press ahead with the A303 project, protecting Stonehenge. People have talked about it for years, he says. He say this government will get it done.
1.23pm GMT
Sunak says he is announcing the biggest ever investment in strategic roads and motorways.
And there will be a new pothole fund, worth 500m a year, which is enough to fill 50m potholes, he says.
1.22pm GMT
Sunak announces 5bn spending on gigabit broadband.
5bn to get gigabit-capable broadband into the hardest to reach places. #Budget2020 pic.twitter.com/POxhZU8a5U
1.21pm GMT
Sunak announces extra money for the devolved administrations.
#Budget2020 provides an extra 640m for Scotland, 360m for Wales, and 210m for Northern Ireland. pic.twitter.com/IjKVMM61YP
1.20pm GMT
Sunak says the government wants to level up. Public investment will be the highest it has been in real terms since 1955.
He says the details will be set out at the spending review.
1.18pm GMT
Sunak says carbon capture and storage (CCS) is exactly the sort of technology where the UK should be excelling. He says he will spend 800m to establish two or more CCS clusters by 2030.
1.17pm GMT
Sunak turns to flooding.
Doubling our investment in flood defences over the next six years to 5.2bn protecting over 300,000 properties. #Budget2020 pic.twitter.com/TOQkP9muso
1.16pm GMT
Sunak says he will increase the roll-out of rapid charging hubs, so that drivers are never more than 30 miles away from one.
500m to support the rollout of new rapid charging hubs, so that drivers are never more than 30 miles away from being able to charge up their car. #Budget2020 pic.twitter.com/fPWtZ8re1S
1.15pm GMT
Sunak says the tax relief on red diesel funds pollution. So he will abolish it for most sectors, he says.
He says this change will not take effect for two years.
1.13pm GMT
Sunak says he will introduce a new plastic packaging tax.
1.13pm GMT
Sunak says at least 800m will be invested in a new blue-skies research agency, modelled on ARPA in the US.
(ARPA, the Advanced Research Projects Agency, is an obsession of Dominic Cummings, the PM's chief adviser. After Brexit, establishing a British version of ARPA is about his top priority.)
1.11pm GMT
Sunak says investment in R&D is increasing.
Increasing investment in R&D to a record 22bn a year. As a percentage of GDP, it will be the highest in nearly forty years - higher than the US, China, France and Japan. #Budget2020 pic.twitter.com/0KVUb4s1aT
1.10pm GMT
Don't underestimate how big a moment this is - Sunak says he'll invest an extra 175bn over next 5 years, which he says OBR calculates will add 0.5pp to GDP growth.
The Tories are embracing the benefits of borrowing to invest. You could say Labour has, "won the argument".
1.10pm GMT
Sunak says businesses need a fair tax system.
He says he has reviewed entrepreneurs' relief. It is expensive, costing more than 2bn a year, ineffective and unfair, with just 5,000 people getting most of the benefit.
1.07pm GMT
Today's growth forecasts are decidedly mixed, showing that the UK economy was expected to grow rather slowly over the next five years, even before Covid-19.
Predicted growth has been cut this year, and in 2022 and 2023 - although 2021 did look rosier. But the coronavirus crisis could change that.
Sunak does not give the public borrowing figures in cash terms - why? They are going up but he does not outline the extent, using percentages of GDP instead:
2.1% this year then 2.4% in 2020-2021, 2.8% in 2021-22, then falls to 2.5%, 2.4% and 2.2% in the following years.
1.06pm GMT
Sunak says all alcohol duties will be frozen next year.
And fuel duty will be frozen next year too, he says.
1.05pm GMT
Sunak turns to duty. He says the UK will continue to lobby the US to remove tariffs. He says he will allocate 1m to promote the Scottish food and drink industry. And there will be 10m to help distilleries go green.
And the planned increase in spirit duty will be cancelled.
1.03pm GMT
Sunak says, now the UK has left the EU, the tampon tax will be abolished.
1.02pm GMT
Sunak says the Conservatives are "the real workers' party".
1.02pm GMT
Sunak says the government will increase the national living wage to two-thirds of median earnings by 2024. That means 10.50 an hour, he says.
The National Living Wage is currently projected to be over 10.50 an hour by 2024. #Budget2020 pic.twitter.com/juWvJY3smr
1.00pm GMT
Sunak says this is the first budget of a new decade, the first for almost 50 years outside the EU, and the first of a new government.
While talent is evenly spread, opportunity is not, he says.
12.59pm GMT
Sunak says debt is forecast to fall over the course of this parliament, going down from 79.5% of GDP this year to 75.2% in 2024-25.
12.58pm GMT
Sunak says there is a live global debate about what the low-interest environment means for fiscal policy.
He says he wants to take time to consider these issues over the coming months.
12.56pm GMT
Economists welcome Rishi Sunak's 30bn fiscal stimulus
Here's EY's chief UK economist, Mark Gregory:
This is a massive fiscal stimulus. Good news for online businesses selling to people stuck at home #Budget2020
Safe to say this is a big budget announcement here - a 30bn fiscal package targeting the real economy and health services. Financial assets almost in standstill watching this unfold.
The Chancellor has announced not only a significant 30bn fiscal loosening but also indicated that he will be keeping the situation under review so we might see more even before an expected Autumn Budget - @AHendersonTax #Budget2020
12.56pm GMT
A summary of the @OBR_UK forecast and other economic data. The fundamentals of the UK economy are strong. #Budget2020 pic.twitter.com/Qnraj86efn
12.55pm GMT
Sunak says the OBR is forecasting inflation at 1.4% this year, increasing to 1.8% next year, and then remaining on or around target (2%).
12.54pm GMT
Sunak turns to the growth forecasts.
He says even before coronavirus hit, the economy was slowing.
12.51pm GMT
The Treasury has been summing up those fiscal stimulus measures on a Twitter feed starting here.
1/ The government is taking action that is coordinated, coherent and comprehensive on COVID-19. This thread outlines some of the support in #Budget2020. pic.twitter.com/73GazU49tu
12.51pm GMT
Sunak says the total value of his fiscal stimulus is 30bn.
He says this is one of the most comprehensive responses of any government around the world to date.
12.49pm GMT
Sunak says he has another measure.
12.47pm GMT
Second, Sunak says statutory sick pay will be available to anyone advised to self-isolate. They will be able to get a sick note through 111.
And, for those who do not qualify for sick pay, it will be easier to get benefits. They will be able to claim benefits from day one.
12.43pm GMT
By pledging to do "whatever it takes" to protect the UK economy from the coronavirus, Rishi Sunak is quoting the famous promise that saved the eurozone back in 2012.
It worked for Mario Draghi then - fingers crossed that it does the trick this time too.
Sunak says he will do "whatever it takes" to protect the economy - echoing the famous words of ECB chief Mario Draghi during the Greek debt crisis.
"For a period, it's going to to be tough: but I'm convinced that our economic performance will recover".
12.42pm GMT
Sunak says he has a three-point plan.
First the NHS will get whatever help it needs, "whatever it costs".
12.41pm GMT
Sunak is now summarising some of the measures announced by the Bank this morning.
The government will use fiscal action to support public services, households and businesses, he says.
12.40pm GMT
Sunak says he wants to provide support for people who get sick, or who cannot work.
And he wants to support businesses facing loss of income.
12.39pm GMT
Sunak says he wants to thank MPs who contributed to the discussions on how to respond to coronavirus, MPs from both sides.
The health secretary is working around the clock to protect people, he says.
For a period, our productive capacity will shrink.
12.37pm GMT
Sunak says:
Let me say this: we will get through this together ... We will rise to this challenge.
12.36pm GMT
Rishi Sunak, the chancellor, is delivering his budget statement now.
He starts by saying he wants to get straight to the issue of coronavirus.
12.34pm GMT
here we go ...#Budget2020 - first time woman in the chair for the Budget, Eleanor Laing as chair of ways and means committee
12.33pm GMT
The Lib Dem acting leader Sir Ed Davey asks whether the three Conservative governments of the last decade should have fixed the roof while the sun was shining.
Johnson says Davey was a member of one of those governments.
12.33pm GMT
Boris Johnson's promise of an "infrastructure revolution" in today's budget will intrigue the City.
Bond traders are expecting a substantial jump in infrastructure spending, and a debt-financed stimulus package to shore up growth.
12.32pm GMT
Andy Carter, a Conservative, asks about the IRA attack in Warrington in the 1990s. Will the government continue to fund support for victims?
Johnson says that funding will continue.
12.30pm GMT
Labour's Zarah Sultana says, if the PM cannot live on 95 per week sick pay, other people should not be expected to live on it either.
Johnson says the government will ensure that people who do the right thing do not lose out.
12.29pm GMT
Johnson says the budget will contain "an infrastructure revolution".
12.29pm GMT
The SNP's Neil Gray asks about an inquiry into avoidable deaths linked to failures in the welfare system. When will the PM order such an inquiry?
Johnson says there have been some tragic cases. He says the DWP is looking at this issue, to ensure that the needs of families are met.
12.28pm GMT
Labour's Bill Esterson says the banks must fulfil their coronavirus responsibilities. Some of them are shoring up their balance sheets.
Johnson says the chancellor will be meeting the banks continuously to ensure they work for the people.
12.26pm GMT
The SNP's Allan Dorans says the government has cut funding for veterans' charities.
Johnson says Dorans was right to raise this issue. The government has appointed a veterans minister, he says. He says there will be more on veterans in the budget.
12.25pm GMT
The House Of Commons is as packed as ever for today's budget statement.
Obviously, the health minister Nadine Dorries is not there, having tested positive for Covid-19. As we reported earlier, Labour's Rachael Maskell is also self-isolating having met Dorries last week. But as there aren't enough seats for all the UK's MPs, it's standing room only.
Social distancing in action in Westminster pic.twitter.com/3JP8mLNmMd
12.24pm GMT
Labour's Rachel Hopkins asks about child poverty in Luton. More people are in low-paid jobs. Does the PM agree that it is unacceptable that children are growing up in poverty?
Johnson says the national living wage is getting its biggest increase. That will benefit people to the tune of 4,000 a year, he says.
12.22pm GMT
Johnson says support for independence in Scotland is declining. Maybe that is because of the tax rates in Scotland and the failing schools.
12.21pm GMT
Jane Hunt, a Conservative, asks the PM to congratulate a local swimming team. Johnson is happy to congratulate Loughborough swimming team.
12.19pm GMT
Labour's Naz Shah asks about hate crime against Muslims. What is he doing to assure Muslims he is not an Islamophobe?
Johnson says there is no room for hatred in his party. He wishes he could say the same about Labour.
12.18pm GMT
Julian Lewis, a Conservative, asks about the 265 war widows whose pensions were cancelled when they remarried. Will the PM meet two of them to put an end to this "dishonourable" situation?
Johnson says the MoD is looking at this.
12.17pm GMT
Labour's Alex Davies-Jones asks about immigration rules and NHS staff. Will the PM ensure that consultants can get visas?
Johnson says that is why the government has introduced a fast-track NHS visa.
12.15pm GMT
Ian Blackford, the SNP's leader at Westminster, asks about support for workers who have to give up work because of coronavirus. He asks what the statutory sick pay rate is in Ireland, compared with in the UK.
Johnson says it is not for him to comment on other countries' sick pay arrangements. On the UK's plans, he urges Blackford to wait for the budget.
12.12pm GMT
Neil Parish, a Conservative, asks whether the PM will meet with MPs representing rural constituencies to discuss how to protect them in trade deal.
Johnson says the government will not compromise on food standards and animal welfare in trade talks.
12.11pm GMT
Corbyn says domestic violence could increase if people have to self-isolate. Will the PM commit to the extra money need to ensure survivors of domestic abuse get the help they need?
Johnson says the government has an outstanding record of tackling violence against women. He says it is introducing a domestic violence bill.
12.07pm GMT
Corbyn says it is not surprise that life expectancy is falling in this country. It is falling for the poorest people in society, he says, when some MPs challenge him.
He asks why, under the "rape clause, 200 women had to prove to the government they were raped to keep child tax credits"?
12.05pm GMT
Jeremy Corbyn starts by saying his thoughts are with the loved ones of those who have died from coronavirus, and with Nadine Dorries. He pays tribute to the work of NHS staff.
Referring to international women's day, he says a quarter of social care women are on zero-hours contracts. They may be asked to self-isolate. But they won't get sick pay. Will the PM ensure they do?
12.01pm GMT
Gary Sambrook, a Conservative, asks about housing. Does the PM agree improving homes will help level up the economy?
Boris Johnson says Sambrook is "spot on".
11.58am GMT
Another highlight from the Brexit committee ...
Michael Gove was so pleased with his attempt at humour at the FREU committee he poured water onto his own phone and papers pic.twitter.com/Jkvj83vipQ
11.57am GMT
PMQs will be starting soon.
Here is the list of MPs down to ask a question.
11.50am GMT
11.47am GMT
Here are some more lines from Michael Gove's evidence to the Commons Brexit committee.
Hmm. Michael Gove admits that - even if there is a post-Brexit trade deal by the end of Dec (prob not) - a security deal "may not be concluded"
Gove leaves the door open to some aspects of a deal being negotiated beyond the transition period. Seems to suggest security could be one of those things.
Gove clarifies this. Says there is a possibility negotiations over internal security might not be finished by the end of the transition period.
SNP MP @Dr_PhilippaW raises important point of quota, asks how that will be divvied up. Gove says it "will be allocated more to smaller boats". Covered a lot of the nuances of this issue here, not simple at all: https://t.co/ADmHebId7d
It would be foolish for anyone to think the PM is not going to stick to that timetable and commitment, people underestimate him at their peril, Michael Gove says of Boris Johnson's promise not to extend transition
11.42am GMT
From the Financial Times's George Parker
Surprise - @michaelgove tells MPs he won't publish impact assessment of proposed EU trade deal (unlike 60 pages on a proposed US deal). Could be because this will be first trade deal in history to leave both sides *worse* off
11.25am GMT
From the BBC's Alex Partridge
Statement by the Health Secretary in the Commons on Coronavirus at 7pm tonight
11.22am GMT
Michael Gove, the Cabinet Office minister, has just started giving evidence to the Commons Brexit committee, or the committee on the future relationship with the EU, to give it its proper name. There is a live feed here.
NEW: Next round of Brexit negotiations could be rescheduled. Michael Gove: it is a "live question".
"We were also looking forward to the next stage of negotiations going ahead but we have had indications today from Belgium there may be specific public health concerns".
V interesting exchange just now on Northern Ireland protocol checks.
Gove asked if there will be additional checks under NI protocol
" That will be a matter for the joint committee".
Asked if there was any doubt over checks?
"I don't want to prejudice what happens in the JC"
I'm looking forward to 'developing' the Northern Ireland protocol in the Joint Committee says @michaelgove. Interesting choice of words.
There won't be any extension to the deadline.
Gove says legal text of British side will be shared with the EU but reserves the right not to publish it until it deems suitable
Implicit criticism of DIT and Liz Truss here for publishing the US impact assessment. Gove says it's wrong to be tied to one view of a course of action.
We're not walking away from the Political Declaration at all says @michaelgove. We just want a relationship similar to the one the EU has with other sovereign equals. @CommonsFREU
11.03am GMT
Sir Ed Davey, the acting Lib Dem leader, has strongly criticised a reported plan to install Chris Grayling, the Tory former transport secretary, as chair of the intelligence and security committee. No 10 chooses members of the ISC. The committee itself then elects its chair but, according to Tom Newton Dunn in the Sun, Boris Johnson plans to appoint Tory members on condition that they will back Grayling for the chairmanship. Newton Dunn says Theresa Villiers, the former environment secretary, and Sir John Hayes are also being offered membership.
In a statement Davey said:
The intelligence and security committee does crucial work holding the government and security services to account. It scrutinises evidence deemed too sensitive for the rest of us to see. The public needs to have confidence that the committee is independent of government.
Installing a lackey of the prime minister - especially one with as little credibility as Chris Grayling - badly undermines that confidence.
10.42am GMT
John McDonnell, the shadow chancellor, says the rolling three-month GDP figures released today (see 9.47am) show the underlying weakness of the economy under the Tories. In a statement he said:
On the day of the budget these figures expose the fundamental weaknesses in the economy after a decade of decline under the Tories.
News of zero growth and falling production, even before the outbreak of coronavirus, show the Tories do not have a grip on the economy.
10.36am GMT
Downing Street has just sent out this read-out from today's cabinet meeting. A No 10 spokesperson said:
Cabinet received an update from the health secretary and the prime minister on the coronavirus outbreak. The PM wished Nadine Dorries a speedy recovery, noting that she was following official advice to self-isolate.
The chancellor set out the measures being taken to manage the impact of coronavirus, laying out details of his economic action plan that will be announced at budget.
10.30am GMT
Rory Stewart, the former Tory cabinet minister who is now running as an independent candidate for London mayor, has said that the government should ban large gatherings in the light of the seriousness of the coronavirus outbreak. That includes in parliament, where this afternoon's budget should be delivered online, he says.
Following the latest infections - including in Government - I urge @10DowningStreet and @MattHancock immediately to accelerate the response. Actions proposed for 2 weeks time - including banning gatherings - must be implemented today. We are taking far too much risk. #ActToday
The House of Commons should cease to meet in person. The budget should be announced online. MPs are at high risk through v frequent contacts and large gatherings. They are in danger of infecting each other in the chamber, and then going on to infect others. Time for Action. Now
10.16am GMT
Rachael Maskell, the Labour MP who is self-isolating after a meeting with Nadine Dorries last week (see 9.20am), told the Press Association that only she, Dorries and members of the minister's staff were present at the meeting on Thursday. Maskell went on:
I'm absolutely fine. Obviously it's frustrating because there are things I want to get on with. I'm just planning on making more phone calls, more working online. I'm not going to be bored, put it that way.
10.13am GMT
On a lighter note, Ben Ellery in the Times (paywall) reports that Dilyn, the jack russell rescue dog adopted by Boris Johnson and his partner Carrie Symonds, could be "quietly rehomed" before the summer. Ellery says:
It is understood that Dilyn has proved quite a "sickly animal". One Whitehall source predicted: "I'm not sure that dog is going to make it through the next reshuffle."
Despite the prime minister having declared Dilyn a "most excellent animal", one source said that the couple had already grown weary of the dog before they discovered that Ms Symonds was pregnant. A particular bone of contention was the mess that he created in their apartment above No 11. "For a while there was dog shit everywhere in the flat," the source added.
What a load of total crap! There has never been a happier, healthier and more loved dog than our Dilyn. 100% bs. The people behind this story should be ashamed of themselves. https://t.co/2TIEPqzdMK
9.47am GMT
UK growth remained flat in the three months to January 2020, the Office for National Statistics has announced this morning. The ONS has released its rolling three-month growth figures, which are not the same as the quarterly growth figures.
0.0% growth in GDP in the three months to January, with services also showing no growth. Production (including manufacturing) was down 1.0%, but construction grew 1.4% https://t.co/0v4m2jmo04 pic.twitter.com/y9pYnsHOLD
Weaker than expected. Raises the chances, given the COVID-19 impact in Mar, that the UK is already in recession. https://t.co/PZ6z1BkSMD
9.34am GMT
From Sky's Tom Rayner
Former cabinet minister @DavidGauke tells @adamboultonSKY he would be "nervous" about being in a packed Commons chamber on Budget day given risks of #covid19 spread, but says it would be a "mistake" to suspend parliament pic.twitter.com/Luct4XXbpI
9.33am GMT
A Conservative MP has confirmed to the Press Association news agency that Nadine Dorries, the first MP to be diagnosed with coronavirus, has sent a message to the Tory WhatsApp group saying that a member of her staff is ill. The MP who confirmed that the message had been sent said the parliamentary party was "fairly relaxed and determined to carry on working".
9.27am GMT
9.24am GMT
The second round of Brexit talks could yet be delayed because of coronavirus, it has emerged. The negotiations are due to start on 18 March and be held in a government building near Victoria station in London but there are concerns over the wisdom of moving 150 delegates from Brussels to London at a time of heightening risk.
The final decision on whether they will take place in London as scheduled next week will made in the coming days. One source familiar with the planning said: "One week in coronavirus is a long time. We shall have to wait and see".
9.23am GMT
Parliament says it currently has no plans to close, despite the news about health minister Nadine Dorries having coronavirus, Sky's Sam Coates reports.
Statement from Parliament authorities pic.twitter.com/941Oj0nU92
9.20am GMT
The Labour MP Rachael Maskell has announced that she is self-is