UK's Sunak: Damage COVID has done to economy has been acute

British finance minister Rishi Sunak is delivering his budget statement to parliament on Wednesday.

Key takeaways as summarized by Reuters

"I will do whatever it takes."

"Damage covid has done to the economy has been acute."

"Our borrowing is highest it has been outside wartime."

"The UK and the world will take a long time to recover."

"Will project jobs and livelihoods in the UK."

"When we are on way to recovery we will need to begin fixing public finances."

"OBR sees a swifter and more sustained recovery than in November."

"We will provide a new restart grant for businesses in April."

"Retailers will receive up to 6,000 pounds per premises."

"Hospitality venues will receive up to 18,000 pounds per premises."

"Total direct cash support for businesses will rise to 25 billion sterling."

"Will introduce new recovery loan scheme to replace bounce back loans."

"Businesses can apply for loans of 25,000 to 10 million pounds."

"Business rates tax exemption will continue until the end of June."

"Business rates will be discounted by up to two thirds for the remaining 9 months of the financial year, worth 6 billion sterling."

"5% reduced rate of vat will be extended for hospitality businesses until the end of September."

Market reaction

These comments don't seem to be having a significant impact on market sentiment. As of writing, the UK's FTSE 100 Index was up 0.8% on the day at 6,665.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD attempts recovery above 1.1950 as US dollar bounce fizzles

EUR/USD is attempting a recovery above 1.1950 ahead of the European open, as the US dollar’s rebound falters amid persistent weakness in the Treasury yields. Easing concerns over EU's covid vaccines rollout and dovish Fed expectations underpin the spot.


GBP/USD recovers to 1.3850 as UK’s optimism offsets USD bounce

GBP/USD recovers to 1.3850, picking up fresh bids heading into the London open. The cheers the UK’s advantage of faster vaccinations and unlock guidelines to shrug off the US dollar’s bounce off late the lowest since late March.


Gold’s path of least resistance appears north, $1798 in sight

Gold is consolidating last week’s rally to two-month highs of $1784, in the wake of the persistent weakness in the US Treasury yields across the curve.  However, gold bulls remain motivated, as China steps up bullion imports.

Gold News

Bitcoin network hash rate drop may not have caused BTC price crash

China’s prominent regions for Bitcoin mining have suffered an electrical grid blackout, causing Bitcoin’s hash rate to decline. Bitcoin price crashed over the weekend, coinciding with the drop of the network’s hash rate.

Read more

S&P 500 Week Ahead: Banks beat the street, COIN booms as funds flow to ETFs

Equity markets continue to remain bolstered from all sides as the macro environment produces strong numbers, earnings continue to smash estimates and inflation concerns take a back seat. Earnings season switches from bank stocks to reopening plays.

Read more