Article 5APWN Covid's full cost to the UK economy is still being counted | Larry Elliott

Covid's full cost to the UK economy is still being counted | Larry Elliott

by
Larry Elliott
from on (#5APWN)

Despite Rishi Sunak's warnings, Boris Johnson's strategy is to keep spending big in hope of recovery

This has been a stinker of a year. More than 54,000 people have died from Covid-19, and the latest forecasts, due out on Wednesday, will show the economy on course to shrink by a tenth or more.

The grim news on growth and unemployment will provide the backdrop to Rishi Sunak's announcement of the Treasury's spending plans for 2021-22 - and a warning from the chancellor that he will need to take action to bring down the government's budget deficit next year.

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